$POWER #DeepCreationCamp

Here is the analysis applying The 3 Candle Model (Range, OB + Break + OTE, KOD).

The Setup

· Pair: POWER/USDT
· Current Price: ~$1.44
· Context: The price is showing a significant drop (-21% in 24h) and appears to be attempting to find a bottom or reverse after a sell-off.

Candle 1: Range

Function: To identify the high and low that defines the range. This is the "parent" candle that provides the structure.

· Identification: Looking at the charts (specifically the 1D or 4H structure implied by the data), the high is clearly defined by the 24h High of 2.2999.
· Low: The low of this range is being tested around the 1.2500 area (24h Low) down to the current price (~1.44).
· Analysis: The market moved sharply down from the 2.2999 region. Candle 1 represents this impulsive sell-off. We are currently in the process of establishing the lower boundary of this range.

Candle 2: OB (Order Block) + Break + OTE (Optimal Trade Entry)

Function: To find the institutional entry point for a reversal trade.

1. Order Block (OB):
· The most recent Order Block would be the last bullish candle before the sharp decline, or the first bearish candle that broke a structure.
· Looking at the data, a potential OB zone is likely just below the 24h High (2.2999) . However, since we are looking for a long (buying) opportunity after a drop, we need a Bullish OB (a down candle that is later breached to the upside, indicating absorption).
· From the charts, the area around 1.4349 - 1.4441 (the current price) is acting as support. The Screenshot at 22:24:39 shows the Lower Bollinger Band at 1.4196 and price bouncing slightly to 1.44. This suggests buying pressure is absorbing the sell orders here.
2. Break:
· For a valid reversal, price must break the structure. In this context, we need to see a break of the recent consolidation/downtrend.
· The chart at 22:24:34 shows a massive, glitched list of numbers, but the screenshot at 22:24:44 shows the price attempting to hold above 1.44. The "Break" would be confirmed if price moves above the recent "More ▼" menu high or above the SAR resistance.
3. OTE (Optimal Trade Entry):
· The OTE (Fibonacci retracement zone) for a pullback would be the 62-79% retracement of the most recent leg down.
· Calculation (estimated):
· Leg Down High: ~2.2999
· Leg Down Low: ~1.2500
· Distance: ~1.05
· 62% retracement from the bottom: 1.2500 + (1.05 * 0.62) = 1.90
· 79% retracement: 1.2500 + (1.05 * 0.79) = 2.0795
· Conclusion: The current price of 1.44 is significantly below the OTE buy zone (1.90 - 2.07). Therefore, this is not an OTE long entry. This suggests that if we are looking at Candle 2, it is actually a Break + OTE for a SHORT, not a long.

Candle 3: KOD (Kind of Disruption)

Function: The violent move away from the OTE/OB zone to generate liquidity and confirm the trend.

· Scenario A (If we are SHORT):
· The KOD would be the massive red candle that broke below the 1.44 handle towards the 1.25 low. The screenshot shows a -21% drop, which qualifies as a disruptive move.
· Scenario B (If we are LONG):
· We have not yet seen the KOD to the upside. The KOD would be a strong green candle closing well above 1.64 (the high shown in the 22:24:39 screenshot) and challenging the Bollinger Upper Band (currently at 2.28 on the longer timeframe).

Summary & Verdict

1. Market Context: The market is in a strong downtrend. The 24H High (2.2999) is far away, and the price is hugging the lower Bollinger Bands.
2. Candle 1 (Range): The range is established between 2.2999 and 1.2500.
3. Candle 2 (OB/Break/OTE):
· Bullish Case: The current price (~1.44) is sitting on a potential support zone (Order Block) near the LB: 1.4196. However, the OTE zone for a long is much higher (1.90+) . This means a long entry here is a gamble on a "V-bottom" reversal, not a high-probability OTE entry.
· Bearish Case: If the price breaks below 1.4196 (LB), that would be a continuation. The OTE for a short would be a pullback up towards the 1.90 area before continuing down. However, the price is currently at the bottom, so the short OTE has already passed.
4. Candle 3 (KOD): The KOD has likely already happened to the downside (the -21% drop). We are currently in the "dead zone" between the Candle 1 low and the Candle 2 OB.

Trading Conclusion:
This is currently a high-risk zone. The price is attempting to find support, but the technicals (OTE levels) suggest that any bounce is likely to be sold into unless price can reclaim the 1.64 level. The most disciplined trade setup would be to wait for a pullback towards the 1.90 - 2.07 OTE zone to look for a short entry, rather than buying at the current low.