At Lathyrus, we believe in creating clarity and independence for our students.
We put together a flow chart for the community so each and every person has a clear roadmap for what to look for, remove any guessing games and make trading easier.
But instead of keeping this exclusive to Lathyrus, we decided to post it to the public. We hope this helps those that are struggling.
Thread 🧵
This is the exact reason your universal sequences keep failing, you're entering before a higher timeframe gap and higher timeframe opening, which means you're fighting the structure instead of working with it.
Use this as the blueprint, wait for the HTF opening, align with it, and position yourself within the highest timeframe gap. Lock that in and the sequences start working in your favor.
How to trade liquidity sweeps
[knowing what sweeps to trade versus avoid]
Our goal as traders is to always be trading into the point of least resistance, and this will be areas or levels that had a failure to manipulate.
If we had a valid previous sweep + closure inside, you don't want to be trading sweeps back into that point.
for example, we had a low sweep with a bullish candle closure inside, the high sweep of that candle becomes invalid to us because we do not want to be trading back into that protected low.
what do we do? we simply be patient and wait for a valid low sweep and then we can trade that candle into the failure to manipulate level.
what if the market takes out our protected low? That is a significant shift. The protected low is our defence point, so as long as we ae bullish, that low should stay intact.