Credits to DAX
High Probability Liquidity Sweep Setup Dashboard
Setup Breakdown
Step 1: Price performs a liquidity sweep of previous lows (e.g. daily, weekly, monthly, equal lows).
Step 2: Price expands higher, causing a Break of Structure (BoS), retraces, and forms a Higher Low (HL) without taking out the swept low.
Step 3: After another BoS, price returns to take out the structural liquidity under the HL, then reverses for a longer move upward.
This setup confirms a trend reversal or continuation and sets the stage for a bullish swing entry. Flip this logic for bearish trades.
High Probability Instruments (Forex, Indices, Commodities, Crypto)
Checklist Point | Reversal Bias | Continuation Bias |
---|---|---|
Is there unmitigated demand/supply below/above? | ❌ No zone left | ✅ Zone exists below sweep |
Was sweep followed by strong BOS in new direction? | ✅ Yes | ❌ No BOS or weak BOS |
Did sweep create FVG + OB + displacement? | ✅ Yes | ❌ No imbalance or poor reaction |
Is sweep aligned with HTF trend change or discount/premium zone? | ✅ Yes (HTF flip/OB) | ❌ Sweep in middle of structure |
Volume/Order Flow shows absorption/rejection at sweep? | ✅ Yes | ❌ No OF confirmation (aggressive sellers winning) |
Multiple rejections from same area post-sweep? | ✅ Indicates defense | ❌ Price slices through like butter |
🧠 What to Avoid ❌❌
🚫 Entering without BOS after sweep
🚫 Trading in the middle of the range
🚫 Ignoring unmitigated HTF zones below/above
🚫 Placing SL inside OB (too tight)
🚫 Entering in premium when bullish (or discount when bearish)