In a strongly uptrending market, nearing its all-time high (ATH), I planned a high-probability buy setup. The trade was based on clear confirmation signals, with my take-profit (TP) placed strategically at the buy-side liquidity level.
The expectation was that price action would attract sellers at the Fair Value Gap (FVG), facilitating a move upward to reach the liquidity zone and fill my TP. However, the market deviated from this anticipated behavior. Instead of filling the FVG on the 5-minute timeframe, price took resistance at the FVG, reversed downward, and ultimately hit my stop-loss (SL).
This unexpected reaction highlights a situation where the price action did not align with the strong uptrend narrative. Despite the robust setup, the rejection at the FVG and failure to fill it resulted in a downside move, invalidating the trade.
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