High-Risk, High-Reward Setup at Critical Confluence ZoneSTP is offering a compelling—but extremely high-risk—opportunity. As a nanocap stock with no confirmed uptrend, risk management must be the top priority.
Price has retraced into a major Fair Value Gap (FVG) from August 2023, and notably, the August 2025 candle printed a strong demand wick on elevated volume. This zone aligns with:
The 200% Fibonacci extension from the double top at 1.940
The 50% extension from the 1.900 swing high to the April 25 low
A 74-week decline from the 1.950 high, marking a significant Gann time support—a detail seasoned time-cycle traders will appreciate
This confluence suggests a structurally significant support zone where price may be preparing for a reversal.
Trade Scenarios
Option 1: Wait for a Wick Retest Price may revisit the demand wick/yearly s2 pivot, offering a more refined entry with improved risk-to-reward. Look for a strong daily or weekly bullish candle off the retest, with the stop-loss placed just below the wick.
Option 2: Enter Now with Wick as Anchor Aggressive entry at current levels, using the base of the large demand wick as your stop-loss. This approach allows price to develop organically while maintaining a defined risk profile and if there is a retest of the wick then could add more to the position (must be in line with your risk appetite) but just food for some thought.
Option 3: Liquidity Sweep & Reversal Price could sweep the lows of the demand structure, triggering stop-losses and trapping late shorts. A sharp reversal from this move would confirm a classic liquidity grab—ideal for reactive entries once momentum shifts.
This setup is rich with technical nuance and timing precision. Whether you're trading the wick, the sweep, or the structure itself, the key is disciplined execution and respect for volatility.
