Not every chart needs a trade. Sometimes the job is simply to identify where the risk/reward starts becoming interesting. While screening for potential shorting opportunities, I came across this setup. The idea was to combine market structure + liquidity + imbalance + trend rather than short simply because price was falling. ๐ What caught my attention? 1️⃣ Bearish structure Price had already experienced a strong decline and was trading below a downward-sloping moving average. That suggested that the broader momentum was still favouring sellers. 2️⃣ Equal High = liquidity above The Equal High marked on the chart is an area I would watch closely. Rather than assuming resistance will hold, I look at clustered highs as a potential area of buy-side liquidity. A move toward or through that area can become important when assessing a potential reversal. 3️⃣ IFVG — potential resistance The purple Inverse Fair Value Gap (IFVG) becomes the key area I'm watching. If price retraces into this z...
The J-Curve Effect and Multi-bagger Stocks In the context of investments, particularly when discussing multi-bagger stocks, the concept of the J-curve often surfaces. The J-curve is a graphical representation of an investment's performance over time, illustrating how an investment might initially underperform but eventually rebound to exceed its starting value. This trajectory, resembling the letter 'J', can be particularly relevant when analyzing the potential of multi-bagger stocks. Understanding the J-Curve When an investor puts money into a new or emerging company, the initial phase might see a dip in the investment value. This could be due to various reasons: operational costs, market skepticism, or initial business challenges. However, as the company starts to gain traction, achieves operational efficiencies, and begins to realize its market potential, the value of the investment starts to rise, often exponentially. Relation to Multi-bagger Stocks Ini...