Knowing the difference between Breaks and Sweeps will definitely avoid most UNNECESSARY LOSS!
On the chart, when structures are broken, there is a full candle formation that exceeds the previous high/low intended to be broken. The candle closes beyond the previous high/low.
Breaks most times validates strong points where we take entries and set as invalidation zones.
The sweep is most times a wick candle formation. The wick exceeds the previous high/low and the candle closes within the previous high/low. Sweeps most times validates weak points which are eventually used as liquidity zones.
Most times, in an entry zone where full candle closure is used as a sweep, there is a correlating timeframe that shows the candle as a wick candle.
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Power of 3 is a concept that happens in every candlestick formation
Study this Framework
Identify the liquidity sweep and Invalidation zones
It works best with trading in the zones ( Asian, London and New York)
Understanding the range the market is trading in is crucial, if you look back to your failed trades, it is because you’re trading the wrong dealing range.
Here is how external & internal ranges form.
THREAD 🧵
3.2 Types of Liquidity
Trendline:
When the retest is more than 3 times, expect it to be a sweep of that trendline.
When price retests the trendline several times, is because theres abundance of orders over that area.