Hello everyone. There’s a lot of talk these days about catching the bottom and buying opportunities, and some analysts are advocating a “Gallar sell-off,” ignoring the bigger picture painted by the market’s whales. Let’s interpret this chart fairly and objectively and answer the most important question: What can a monthly frame do in the face of the power of a larger frame?

Following the supply and demand approach, we analyze from the largest frame to the smallest frame to assemble a complete picture:

Major frameworks (annual, semi-annual and quarterly): The situation here is dire for buyers. We clearly note the complete control over the consecutive display areas (“Annual Display”, “Semi-Annual Display”, “Quarterly Display”). The strong and violent decline in price from these leading levels confirms that the general trend is under heavy selling pressure and that the strength of the major market makers at this level cannot be underestimated.

Monthly Time Frame: This is a psychological trap that many people fall into. Yes, we have an “Uptrend” and “Monthly Demand” area, but take a closer look at how the price is falling towards it! Our price action is very bad. This area is currently facing an “attack level” (a strong attack from impulsive price fluctuations in annual quotations). This violent attack requires absolute certainty and cannot be entered rashly.

Weekly Frame: The most prominent and decisive event here is the emergence of an OOA (Out of Direction) situation. The price has abandoned its course and broken out of the important area (shown by the yellow breakout area). Strict technical rules dictate that if an OOA occurs, you must immediately move to a larger framework (here, monthly) to complete the analysis and identify trends and areas. Looking for “Wow Trade” opportunities in this flawed framework is absolutely not allowed.

Analysis summary (technical butter):
The monthly frame is struggling alone in the face of a flood of annual quotations, and the price trend has declined sharply and badly. Therefore, buying directly on a monthly subscription would be financial suicide. The region desperately needs strong affirmation.

Since the target area is “Monthly”, the appropriate confirmation would be the appearance of “Wow Trade” on the daily frame.
This confirmation will only be achieved when the daily candle (OCHL) closes completely outside the sub-downtrend, forming a new demand area (WOW Trade). It is best and always required that such a breakout be accompanied by an engulfing buy candle to express actual strength that can repel the annual supply attack and change direction.

Without this clear daily confirmation, any purchase attempt is just standing in front of a speeding train. Do you have the guts to wait for confirmation, or will you root for the whales of the annual show? The choice is yours!

Disclaimer: This analysis is based on a systematic technical interpretation of supply and demand areas and price action and is in no way considered a firm buy or sell recommendation. Trading in financial markets involves a high level of risk and the decision to enter or exit is entirely up to you and your personal responsibility.

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