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Bearish Orderblock (Supply Zone) retests are not always the same. The market maker sets different traps before entering.
Let's examine the 3 different retest types in the visual: 🧵👇
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1. Significant High Liquidity Fake Out
Price rises toward the supply zone.
It takes the liquidity of previous peaks (PDH/PWH).
While everyone says "it's going up," it makes a sharp fake-out (trap).
It gathers liquidity and quickly drops down.
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2. Consolidation Liquidity Fake Out
Price consolidates in a horizontal band (sideways) below resistance.
People open positions in the breakout direction.
Price breaks up and makes a "Significant High" but cannot pass the supply zone.
It stops everyone inside and reverses downward.
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3. Continuation Pattern (Continuation Formation)
Price gradually rises by forming a flag/wedge in the supply zone.
This image gives a bullish perception to the market.
The formation breaks upward, creating FOMO.
Short orders are filled right at the supply zone, and a sharp decline begins.
Summary: How the price approaches the supply zone reveals its intention. Don't fall for the traps!