The price recently achieved a downward shift into discount territory after taking sell-side liquidity below the previous intraday lows.
The current price action forms a potential bullish reaction zone, where institutional accumulation may occur before continuing higher.
SMC frame
1. Sell-side liquidity sweep
Prices swept through sell-side liquidity to settle below previous lows around the 1.1525-1.1530 area.
The liquidity grab created the fuel for potential upward expansion.
The invasion was followed by:
Strong upward displacement
Change in short-term order flow
Create bullish imbalance/FVG
This suggests that the smart money may have accumulated long positions after weak hands liquidated.
2. Bullish order block/demand zone
The highlighted blue area represents the institutional demand area.
This area corresponds to:
Origin of previous upward displacement
Discount pricing
Unlimited demand
Liquidity interaction zone
The idea is that the price returns to this area to rebalance the shortcomings before continuing higher.
OTE (Optimal Trade Entry) logic.
Using the last lunge leg:
Featured Zone → Bullish Expansion Zone
Discount zone → Accumulation zone
The current correction is approaching the 0.618–0.786 Fibonacci retracement zone, which represents the ICT OTE zone.
a reason:
Rebound alignment 0.618–0.786
Discount pricing
Previous request
Liquidity rests below
Standard deviation analysis
The price is currently trading near the lower statistical limit of the recent range.
The deflection framework suggests the following:
The price expanded beyond the average
Selling pressure has reached extreme extremes
This means that the probability of retracement increases from these maximum limits
The lower deviation range acts as a potential institutional reaccumulation zone.
Expectation:
Extreme deviation → return towards the mean → expansion towards the upper deviation
