LINKUSDT Monthly Analysis: Bullish Breakout Anticipation
2025-01-18
Category: None

Analyzing LINKUSDT on the monthly timeframe for an internal range to external range market structure shift with a breakaway gap involves several steps. Here's a structured approach to evaluate the scenario:

1. Identify the Internal Range:
Look for the highest high and lowest low within the recent consolidation or retracement phase.
Define this range using clear swing points.
2. External Range Expansion:
After the internal range is defined, anticipate the market's potential to break out of this range and create an external range.
An external range forms when price moves beyond the internal high or low, indicating a significant trend shift.
3. Market Structure Shift (MSS):
A bullish MSS occurs when the price breaks a significant swing high, forming a higher high.
A bearish MSS occurs when the price breaks a significant swing low, forming a lower low.
Confirm this by observing strong impulse candles closing beyond the swing points.
4. Breakaway Gap:
A breakaway gap is typically characterized by price opening significantly above or below the previous month's close, leaving a visible gap on the chart.
This indicates a surge in momentum, often driven by a fundamental catalyst or a strong imbalance.
5. Analysis Steps for LINKUSDT:
Step 1: On the monthly timeframe, mark the internal high (swing high) and low (swing low).
Step 2: Check for a decisive candle that breaks these levels with strong volume.
Step 3: Look for a breakaway gap that might align with the market structure shift. The gap suggests institutional activity or aggressive order flow.
Step 4: Observe price reaction at FVGs (Fair Value Gaps) or OBs (Order Blocks) formed post-gap for potential reentries.