📌 Overview
This setup developed after EURUSD swept buy-side liquidity above a short-term high before showing signs of rejection.
The trade aligned:
- Buy-Side Liquidity (BSL) Sweep
- M5 IFVG Confirmation
- Bearish Market Reaction
- Clear downside objective
- 1:2 Risk-to-Reward execution
The goal was to wait for liquidity to be taken before looking for confirmation of a move lower.
🧭 Market Context
During the London session, EURUSD pushed higher and took liquidity resting above the previous high.
Rather than continuing higher, price quickly rejected from the liquidity sweep and began showing bearish intent.
This created a potential reversal scenario as trapped buyers entered near the highs.
🎯 Trade Bias
The bearish bias was based on:
- Buy-side liquidity being swept
- Failure to sustain higher prices
- M5 IFVG formation
- Rejection from premium pricing
- Lower-timeframe bearish structure
The expectation was for price to seek liquidity below the current range.
⚙️ Execution Model
BSL Sweep → M5 IFVG → Sell Continuation
Entry Conditions
- Liquidity above the highs was taken
- Strong rejection followed
- M5 IFVG formed
- Bearish continuation confirmed
The IFVG provided the confirmation needed before entering the trade.
📍 Entry & Risk Management
Entry: M5 IFVG retracement
Stop Loss: Above the liquidity sweep high
Take Profit: 1:2 Risk-to-Reward
🚀 Trade Outcome
After entry:
- Price respected the IFVG zone
- Sellers regained control
- Market moved lower as anticipated
- Risk-to-reward objective remained clear and defined
🧠 Trade Review
✔ Strengths
- Liquidity taken before entry
- Clear rejection at the highs
- IFVG confirmation
- Defined risk and target
🔑 Key Takeaway
Liquidity sweeps often provide the best opportunities when combined with lower-timeframe confirmation.
The sweep creates the setup. The IFVG provides the entry.
📌 Conclusion
This EURUSD trade demonstrated a simple but effective liquidity-based reversal model. After sweeping buy-side liquidity, price formed an M5 IFVG and offered a clean sell opportunity with a planned 1:2 risk-to-reward objective.
⚠️ Disclaimer: This content is for educational purposes only and does not constitute financial advice. Trading involves risk, and past performance does not guarantee future results.
I currently use the prop firm below for my trading and evaluations.
It aligns well with my NY session approach and execution style.
If you want to explore it further, you can check it below:
FundingPips — Prop Firm
Used in my live trading & evaluations
Used for analysis, structure, and execution planning
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