💧 Liquidity Sweep: the key before looking for a Break of Structure
Many traders get confused between trading a breakout or waiting for a liquidity sweep. The difference seems small, but it can be what separates a winning trade from an unnecessary loss ⚠️.
🔹 What is a liquidity sweep?
The market needs liquidity to move. That liquidity is in the stop losses and in the pending orders that traders place in obvious areas.
👉 A sweep occurs when the price temporarily breaks a key level (high or low) just to capture those orders and then turns in the real direction 📉📈.
🔹 Why I don't like direct breakouts?
Because most of the time, the breakout is not the start of the movement, but a liquidity trap.
The price rises, breaks a high, traps all late buyers… and then reverses sharply to take their stops 😓.
🔹 The correct sequence
1️⃣ Liquidity Sweep → The market sweeps an obvious level and captures liquidity.
2️⃣ Break of Structure (BOS) → After the sweep, the price confirms a real change of direction by breaking an internal structure.
3️⃣ Fair Value Gap (FVG) → We look for the entry in the generated imbalance, taking advantage of the newly validated direction.
🔹 Liquidity grab vs breakout trade
👉 The liquidity grab is when you wait for the market to first capture stops and then confirm the turn.
👉 The breakout trade is to enter directly at the breakout… and in most cases, you end up being the liquidity.
✨ Final reflection
In trading, it’s not about chasing the first breakout, but about waiting for the liquidity sweep + confirmation. That patience is what makes the difference between trading like the crowd or like the big players 🏦.
Thank you for reading 🙏 Message me if you want me to show you real examples of sweeps and how to validate them with FVG. Have a great day and discipline in the market! 💡
#hugoscenturioncrypto #hugoscenturioninversion #blockbrainmx #primeroaprendeluegoinvierte #hablemosdecrypto #hablemosdetrading #sweettrade #liquiditysweep #orderflow #smartmoneyconcepts