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