Bulls Trap Bears at Multi-Level Support - Coiled SpringEuro FX FuturesCME_DL:6E1!jacesabr_real📊 **To see my confluences and/or linework, step 1: grab chart, step 2: unhide Group 1 in object tree, step 3: hide and unhide specific confluences.** 😊 Title: 🎯 6E1!: Bulls Trap Bears at Multi-Level Support - Coiled Spring The Market Participant Battle: At point 4 (1.1770-1.1780 area), we're witnessing a critical moment where proven buyers from point 2 (1.1750) have successfully trapped aggressive sellers who pushed from point 1 (1.1850). These bulls defeated the bears during the initial test, and now with price returning to this battlefield, we expect a powerful upward reversion as trapped shorts are forced to cover and new buyers join the proven winners. The setup suggests a 150+ pip move back toward the 1.1920-1.1950 area. Confluences: Confluence 1: Proven Market Participants Structure The numbered sequence (1→4) reveals a textbook market participant trap. When point 3 closed above point 1, the buyers at point 2 became proven winners. Point 4 represents our return to these victorious bulls' territory, creating a high-probability reversal zone where smart money accumulates. Confluence 2: Double Bullish Gap Overlap Using the gap indicator, two bullish gaps converge precisely at point 4, indicating this zone previously saw explosive buying interest. Gaps often act as magnets and support, making this overlap a powerful bullish signal. Confluence 3: Volume Profile POC Alignment The fixed range volume profile from point 0 to 3 shows the Point of Control (POC) falls exactly at point 4. This represents the price level with the most traded volume - institutional battleground. Value Area Low aligns with point 2, confirming strong buyer presence. Confluence 4: VWAP Standard Deviation Extreme Price has pushed outside the 2nd standard deviation from VWAP anchored at point 3, indicating an extreme oversold condition. The slow pullback upward suggests mean reversion beginning. Confluence 5: Bullish Imbalance & Delta Divergence The large bullish bar at point 4 contains a stacked bullish imbalance. The last three red bars showed positive delta despite red closes - classic absorption pattern where buyers overwhelm sellers. Confluence 6: Multiple Oscillator Divergences RSI and MFI both make higher lows while price makes lower lows - bullish divergence. OBV has touched its lower Bollinger Band, historically marking reversals in Euro futures. Web Research Findings: - Technical Analysis: EUR/USD showing mixed signals with daily buy rating but hourly showing strong sell - typical of major reversal points - Recent News/Earnings: ECB cut rates 25bps on January 30th to 2.75%, continuing easing cycle - supportive for eventual EUR strength as economy stabilizes - Analyst Sentiment: 2025 forecasts range from 1.14-1.18, with support building at current levels - Data Releases & Economic Calendar: Eurozone PMIs due January 24th - improvement expected to relieve selling pressure - Interest Rate Impact: ECB at 2.75% vs implied Fed funds around 4%, but gap narrowing as ECB approaches neutral rate Layman's Summary: Think of this like a tug-of-war where the bulls just proved they're stronger at the 1.1770 level. The bears tried to push lower but are running out of steam (shown by positive buying despite red candles). With the ECB done with aggressive cuts and technical indicators screaming oversold, it's like a spring being compressed - ready to snap back higher. Machine Derived Information: - Image 1: Volume Footprint showing absorption at 1.1801 level with Delta patterns - Significance: Major institutional buying zone confirmed - AGREES ✔ - Image 2: Hourly chart showing symmetrical triangle pattern from points 1-4 - Significance: Compression pattern ready for explosive move - AGREES ✔ Actionable Machine Summary: The machine analysis confirms heavy institutional accumulation at these levels. The volume footprint reveals progressive buying absorption, while the price structure shows a textbook accumulation pattern. Combined with multiple technical divergences, the AI assessment strongly supports a bullish reversal scenario. Conclusion: Trade Prediction: SUCCESS Confidence: High The confluence of proven buyer support, volume profile POC, multiple divergences, and extreme oversold conditions creates a compelling long setup. Risk/reward favors bulls with 30 pip stop below 1.1740 targeting 150+ pips to 1.1920-1.1950.