4. Distribution/Reversal or Continuation The price fills the FVG, the mitigation block, and either turns around or continues the trend towards new liquidity.
3. Expansion / Displacement (Extension) After sweep, there is a strong impulse in the opposite direction. BOS (Break of Structure) + CHOCH (Change of Character) is formed. The price is โdeliveredโ to the next liquidity or POI (Point of Interest).
Price is only drawn to 2 things
- Liquidity
- Inefficiencies
Price will seek to take out liquidity and rebalance inefficiencies.
Price isn't random, it's all programmed.