Overview
This strategy helps you find high probability reversal trades by watching where big institutions move the market.
Step 1. Find Liquidity Sweeps
First, look at the chart and mark the previous day high or low. Wait for the price to break past these levels to sweep the liquidity. This is where big traders trap retail buyers or sellers.
Step 2. Confirm With RSI Divergence
Once the price sweeps the level, check your RSI indicator. Look for a clear divergence where the price makes a new high or low but the RSI does not. This confirms the trend is losing strength.
Step 3. Enter And Manage Risk
Enter your trade when the market starts moving in the opposite direction. Place your stop loss just past the recent swing high or swing low. Aim for a target that gives you at least three times what you are risking.
Trading is risky. Always follow your own trading plan. This is not financial advice.
This strategy helps you find high probability reversal trades by watching where big institutions move the market.
Step 1. Find Liquidity Sweeps
First, look at the chart and mark the previous day high or low. Wait for the price to break past these levels to sweep the liquidity. This is where big traders trap retail buyers or sellers.
Step 2. Confirm With RSI Divergence
Once the price sweeps the level, check your RSI indicator. Look for a clear divergence where the price makes a new high or low but the RSI does not. This confirms the trend is losing strength.
Step 3. Enter And Manage Risk
Enter your trade when the market starts moving in the opposite direction. Place your stop loss just past the recent swing high or swing low. Aim for a target that gives you at least three times what you are risking.
Trading is risky. Always follow your own trading plan. This is not financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.