The global application

PAIR:

$MERL #MERLUSDT

MERLUSDT

TIMEFRAME:

H1

DIRECTION:

SHORT

MARKET STRUCTURE:

- Bearish (Lower Lows/Lower Highs)

- Trend alignment: Strongly bearish in the short-term sequence

PRICE LOCATION:

- Level: Breakdown edge

- Quality: Low - Price is currently extended away from the previous value area

LIQUIDITY ANALYSIS:

- Present: Low

- Behavior: Lack of institutional participation (RVOL < 1.0)

VOLUME (RVOL):

- RVOL: 0.70

- Intent: Weak - Selling pressure is not backed by significant volume expansion

MOMENTUM & VOLATILITY:

- RSI: 38.58

- Bias: Bearish but approaching exhaustion zones

- Bollinger: Expanding on the downside but lacks sustainment volume

RISK ASSESSMENT:

- Level: Moderate

- Stop Validity: High - SL placed above recent local high (0.4128)

- R:R Realism: Theoretical - 1:3.5 is ambitious without volume support

"The market structure is indeed bearish, but the relative volume (RVOL) is very low (0.70), which means the current breakdown may lack follow-through and could turn into a trap. The RSI indicator is approaching oversold zones. It is preferable to wait for a retest of levels 0.400-0.405 with stronger selling volume before entering."