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. π 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...
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.
π 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 zone and sellers respond, it could provide a more structured potential short setup than chasing the initial decline.
The important part isn't simply:
“Price touched the IFVG → short.”
I'm looking for rejection + confirmation.
4️⃣ Support = potential downside objective
The orange support level below provides a potential area to monitor if bearish continuation develops.
So the framework becomes:
Liquidity → Retracement → Rejection → Confirmation → Potential continuation → Support
π― The analytical thesis
I'm essentially looking for:
Bearish trend
⬇️
Retracement toward the IFVG / liquidity area
⬇️
Bearish confirmation
⬇️
Potential short setup
⬇️
Previous lows / Support as potential objective
And if price invalidates the bearish thesis and establishes acceptance above the relevant resistance/liquidity zone?
No setup. Move on.
This an equally important part of the process.
⚠️ Disclaimer
This post is shared solely for educational and informational purposes and is intended to explain a technical-analysis/chart-screening methodology. It should not be construed as investment advice, a recommendation, solicitation, or an offer to buy or sell any security.
The chart and setup are presented as an illustration of an analytical process and not as a recommendation to take a position. Markets involve risk, and past performance is not indicative of future results.
Investors should conduct their own research and consider their individual risk profile before making any investment or trading decision. Consult your financial advisor before investing in the stock market.
2-Day Offline Workshop
Master the Art of Chart Analysis
Learn to read the market, identify potential setups and build your own structured chart-analysis process.
What you'll learn
πMarket Structure
π§Liquidity & Equal Highs/Lows
π£FVG / IFVG
πTrend & Momentum
π―Support & Resistance
⚖️Risk/Reward & Invalidation
πSystematic Chart Screening
π§ Building Your Own Framework
The approach
The objective is not to predict every move. It is to understand market structure, identify areas of interest, define invalidation and wait for confirmation before forming an analytical thesis.
Structure → Liquidity → Imbalance → Confirmation → Risk/Reward
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Duration: 2 Days Offline
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Maximum: 5 participants per batch
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No stock tips. No buy/sell calls. No trading signals. No portfolio recommendations or personalised investment advice. The focus is on learning chart analysis and developing your own analytical framework.
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No stock tips. No buy/sell calls. No trading signals. No portfolio recommendations or personalised investment advice. The focus is on learning chart analysis and developing your own analytical framework.
Disclaimer: This workshop and the information presented
are solely for educational and informational purposes. They do not
constitute investment advice, research recommendations, solicitation,
or an offer to buy or sell any security. No stock tips, trading calls,
recommendations, trading signals or personalised investment advice are
provided. Markets involve risk and past performance is not indicative
of future results. Participants should conduct their own independent
research and consult an appropriate financial professional before
making any investment or trading decision.