📌 Overview
This NY session trade was based on a higher-timeframe bearish narrative combined with lower-timeframe confirmation.
The setup aligned:
- H1 Bearish Fair Value Gap (FVG)
- Buy-Side Liquidity (BSL) sweep
- M5 IFVG confirmation
- Clear draw on Sell-Side Liquidity (SSL)
- 1:2 Risk-to-Reward execution
The objective was to sell after liquidity above the highs had been taken and the market showed signs of reversing lower.
🧭 Market Context
Before the trade, price rallied into a premium area and traded directly into an H1 Fair Value Gap.
As price pushed higher, it swept buy-side liquidity resting above the previous highs. However, instead of continuing higher, the market began showing weakness.
The liquidity sweep into a higher-timeframe FVG created a strong bearish narrative.
At the same time, there was a clear draw on liquidity below, making the downside the more attractive objective.
🎯 Trade Bias
The bearish bias was based on:
- H1 FVG reaction
- Buy-side liquidity sweep
- Failure to continue higher
- Clear sell-side liquidity target below
- Lower-timeframe bearish confirmation
The expectation was for price to reverse from premium pricing and seek liquidity below the market.
⚙️ Execution Model
The setup followed a simple framework:
H1 FVG → BSL Sweep → M5 IFVG → SSL
Entry Conditions
- Price entered the H1 FVG zone
- Buy-side liquidity was swept
- M5 IFVG formed
- Bearish continuation confirmed
The M5 IFVG provided the confirmation needed before entering the trade.
⏰ NY Session Timing
The setup developed during the New York session when liquidity and volatility were active.
Rather than selling immediately after the liquidity sweep, patience allowed confirmation to form through the M5 IFVG.
This helped improve trade quality and risk management.
📍 Entry & Risk Management
Entry
- M5 IFVG retracement
- Bearish reaction from premium pricing
- Continuation structure intact
Stop Loss
- Above the liquidity sweep high
Take Profit
- Sell-Side Liquidity (SSL)
- Planned 1:2 Risk-to-Reward
🚀 Trade Outcome
After entry:
- Price respected the M5 IFVG
- Sellers regained control
- Market expanded lower
- Sell-side liquidity became the primary draw
The setup delivered a clean continuation move while maintaining favorable risk-to-reward.
🧠 Trade Review
✔ What Went Well
- Strong H1 context
- Clear liquidity sweep before entry
- Patient confirmation on M5
- Defined liquidity target
⚠️ Improvements
- Refine entry timing on lower timeframes when available
- Consider scaling partial profits near intermediate liquidity zones
🔑 Key Takeaway
One of the highest-probability reversal setups occurs when:
👉 Higher Timeframe FVG + Liquidity Sweep + Lower Timeframe IFVG
The liquidity sweep creates the opportunity, the FVG provides context, and the IFVG offers precise execution.
📌 Conclusion
This was a clean NY session sell setup where price swept buy-side liquidity into an H1 Fair Value Gap before reversing lower. The M5 IFVG provided confirmation, while the clear draw on sell-side liquidity offered a logical target, resulting in a structured 1:2 risk-to-reward trade.
⚠️ 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.
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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
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Used for analysis, structure, and execution planning
