31/08/2025
๐ Step-by-Step Breakdown of the Chart
Step 1: Liquidity Sweep (Point 1)
Price aggressively pushes above a previous high (BSL) where many traders placed stop losses.
This sweep grabs liquidity from breakout traders and stop-hunters.
Smart money uses this liquidity to fuel the next move in the opposite direction.
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Step 2: Price Returns into the Range (Point 2)
After sweeping liquidity above the high, price fails to sustain and quickly moves back inside the range.
This shows the breakout was false (a manipulation).
It signals a potential bearish reversal, since buyers are now trapped.
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Step 3: FVG Becomes IFVG
During the liquidity sweep leg, an FVG (Fair Value Gap) is created.
Once price retraces back into the range and violates the FVG, it inverts into an IFVG (acting as resistance instead of support).
This IFVG becomes a key entry zone for traders.
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Step 4: Retracement Entry (Point 4)
Price retraces back up into the IFVG.
Smart traders enter a short trade (sell position) at this retracement.
This provides a low-risk, high-reward entry point.
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Step 5: Targeting Liquidity (Point 5)
Once the short trade is entered, the logical target is sell-side liquidity (SSL) or the Daily Open Line (DOL).
Price usually seeks liquidity, so the movement will likely head toward previous lows or stop clusters.
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โก Summary of the Trade Setup
1. Price sweeps buy-side liquidity (BSL) above a high.
2. Price returns back into the range (fake breakout).
3. Identify an FVG in the sweep leg โ becomes IFVG once violated.
4. Enter short on retracement into IFVG.
5. Target sell-side liquidity (SSL) or nearest liquidity pool.