Overview
This approach assumes obvious highs and lows hold resting orders. It waits for price to take them, then trades only if structure confirms a reversal.
Objectives
- Identify obvious liquidity
- Trade the reaction, not the run
Suitable market conditions
- Clear equal highs or lows, or session extremes
- Higher-timeframe level nearby
Tools and indicators
- Liquidity pools
- Market structure
- Fair value gaps
Market bias
Higher-timeframe structure; reversals against it require extra confirmation.
Entry rules
- Mark liquidity before the session
- Wait for the sweep
- Enter on BOS in the opposite direction
Confirmation
- Close back inside the level
- Displacement candle leaving an FVG
Stop loss and take profit
- Stop beyond the sweep extreme
- Target opposite liquidity
Risk management
- One attempt per liquidity pool
Valid example
Equal highs swept at the New York open, close back below, M5 BOS downward with an FVG. Entry on the FVG retest.
Invalid example
Price sweeps the highs and keeps closing above them. No reversal; no trade.
Common mistakes
- Fading every new high
- Entering before structure confirms
Advantages
- Clear invalidation
- Entries near extremes
Limitations
- Strong trends run through liquidity repeatedly
No strategy guarantees profit or a particular win rate. Test any approach on a demo account and size every trade from a fixed risk.