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. 🔍 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...
Every Chart Has A Story 📊
This chart is a good example of how higher-timeframe structure and lower-timeframe momentum can diverge before a decision point.
Price is holding intermediate support levels on the longer time frame (HT) & is still in an uptrend.
The trend on the shorter time frame(LT) is indicating loss of upward momentum.
👉🏻I would not initiate an overnight position especially over the weekend.
Possible Entry Zone👇🏻
If The Open is above intermediate support + price holds above the first 30-min low.
Only If both the conditions hold 👉🏻the open confirms the higher time frame structure & the 30-min low confirms the short-term isn't breaking down.
Position Sizing👇🏻
Simply put I would look to initiate either 1/3rd of 1/4th of my allocation and look to pyramid or close out my trade depending on how the market moves.
👉🏻 Note
Keep an eye on the advance/decline ratio for broader market health, and check the economic and earnings calendar ( prepare ur weekly calendar )before initiating a trade. Any trade in an individual stock can get overridden fast by a macro print or a sector-wide earnings reaction.
📍Disclaimer:
👉🏻Information shared is for educational purposes only and reflects my personal trading approach — not financial advice.
👉🏻Not a recommendation to buy or sell.
👉🏻Do your own research and consult a licensed financial advisor before making any trading decisions.