Key-Resistance Liquidity Grab → FVG ShortIdea:
Price has reached a key resistance zone — a common place where smart money or institutions may hunt liquidity (stop-losses above resistance before reversing).
There is an unfilled Fair Value Gap (FVG) / imbalance zone drawn below (green “POI / FVG” zone). In price-action trading, these FVGs often act like magnets: after a rapid move, price tends to retrace and “fill” the gap.
The plan: wait for a rejection at resistance (signaling liquidity grab is done), then short — target the FVG/POI zone where the market may come back to fill imbalance.
🎯 Trade Plan (Entry / Exit / Risk-Reward)
Parameter Plan
Entry After a bearish rejection (e.g. long upper-wick candle) near the resistance zone.
Stop-Loss Slightly above the resistance / recent swing high (to avoid being stopped by a false breakout).
Take-Profit (TP) Around / within the FVG / POI zone (green zone on chart) — where imbalance may be filled.
Risk–Reward Aim for at least 1 : 2 — ideally more, depending on how far the FVG is below resistance.
⚠️ What Makes This Setup Valid (and What to Watch)
FVGs mark market inefficiencies / liquidity gaps created by rapid moves, which often get revisited.
A reversal or rejection at a well-defined resistance zone gives signal that the liquidity hunt may be done and a move downward may begin.
But — if price breaks cleanly and strongly above the resistance (with momentum), the short trade becomes invalid.
Also, FVGs don’t always get filled. Entry should ideally wait for a clear rejection or confirmation, not just assume a fill.
