4H CHoCH Formed – Short from Supply with Caution

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Hello Traders,
Today we’ve seen a Change of Character (CHoCH) form on the 4-hour chart after price broke above the higher time frame’s weak high (HH) from yesterday. This suggests we’re now in a bearish counter-trend pullback phase. Trading short from the 4H supply zone with lower time frame (LTF) confirmation presents a high-probability setup.

However, keep in mind that on the daily chart, price is reacting from a Fair Value Gap (FVG) or imbalance zone, meaning there’s still a chance price could push higher. So using LTF confirmation before entering shorts is essential.

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