📌 Overview
This trade was taken during the New York session on SPX500 using a liquidity-based continuation model.
The setup combined:
- Sell-side liquidity sweep
- Bullish displacement
- IFVG (Inverse Fair Value Gap)
- Market structure shift
- 1:2 Risk-to-Reward execution
The objective was to capitalize on the bullish continuation after liquidity was engineered below intraday lows.
🧭 Market Context
Prior to the entry, price was consolidating within a short-term range.
During the NY session, the market swept liquidity below the range lows, triggering sell stops and removing weak longs from the market.
Immediately after the sweep, buyers stepped in aggressively, creating strong bullish displacement and reclaiming previous structure.
This suggested that the downside liquidity had been collected and the market was preparing for expansion higher.
🎯 Trade Bias
The bullish bias was based on:
- Sell-side liquidity taken
- Strong bullish displacement
- Formation of an IFVG
- Reclaim of intraday structure
- Price trading back above equilibrium
The expectation was a continuation move toward buy-side liquidity resting above recent highs.
⚙️ Execution Model
The trade followed a simple framework:
Liquidity Sweep → Displacement → IFVG → Continuation
Entry criteria:
- Sell-side liquidity cleared
- Strong bullish impulse
- Pullback into the IFVG zone
- Bullish reaction from imbalance
This provided a favorable risk-to-reward opportunity while maintaining a logical invalidation point.
⏰ NY Session Timing
The setup developed during the New York session when liquidity and volatility were highest.
This period often produces the day's most significant moves as institutional participation increases and liquidity is redistributed.
📍 Entry & Confirmation
Entry
- Pullback into the bullish IFVG zone
- Market respected the imbalance
- Buyers defended the area immediately
Stop Loss
- Below the liquidity sweep low
Take Profit
- 1:2 Risk-to-Reward
- Targeting buy-side liquidity above recent highs
🚀 Trade Outcome
Price reacted cleanly from the IFVG and continued higher.
The move delivered:
✅ Successful liquidity sweep setup
✅ Clean IFVG reaction
✅ Strong bullish continuation
✅ 1:2 RR target achieved
🧠 Trade Review
What Went Well
- Clear liquidity objective
- Patient entry after displacement
- Good risk management
- Trade aligned with NY session momentum
Possible Improvements
- Refine entry on lower timeframe for tighter risk
- Consider partial profits near intermediate liquidity levels
🔑 Key Takeaway
One of the most reliable continuation setups occurs when:
Liquidity is swept, displacement confirms intent, and price retraces into an IFVG.
Rather than chasing momentum, waiting for the pullback into the imbalance often provides the best entry location with reduced risk.
📌 Conclusion
This SPX500 trade demonstrated a textbook NY session continuation setup. After sweeping sell-side liquidity, the market showed clear bullish intent, retraced into an IFVG, and expanded toward buy-side liquidity, delivering a clean 1:2 risk-to-reward outcome.
⚠️ 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
){kind=link}