๐ The Pain of a "Two-Way Stop Loss Sweep" & How to Survive
This is a classic market scenario:
Liquidity sweep โ the stop loss on both Long and Short positions is swept away in a short period of time.
๐ Downward sweep: Red candle with a long wick โ sweeps away Long Stop Losses below support
๐ Upward sweep: Immediately followed by a strong green candle โ sweeps away Short Stop Losses above resistance
โ Result: Retail loses in both directions, while institutions accumulate liquidity and push the price in their desired direction
๐ฏ 3 principles to switch from holding losses to holding profits
1๏ธโฃ Cut losses early & decisively ๐ก๏ธ
View loss as an expense, not a failure
Hit SL (1โ2% of capital) โ cut immediately
Don't move SL out of hope; holding losses only makes you miss opportunities later
2๏ธโฃ Wait for confirmation, don't re-enter hastily ๐ง
Don't FOMO after being swept away
Wait for H1/H4 candles to close to confirm the structure
Trade according to structure, not emotion
3๏ธโฃ Hold profits correctly ๐
If you make a profit โ move SL to break even
Use Trailing stop or partial take-profit
Objective: Lock in risk, let profit follow the trend
๐ Conclusion:
๐ Cut losses small to hold large profits
๐ That is the only principle that helps traders survive and make money long-term in this market.