Core Concepts
Break vs Sweep
The framework for determining if a level break is genuine continuation or a liquidity grab reversal
When a high or low gets taken out, it is either a genuine break of structure (continuation) or a liquidity sweep (reversal). Both look identical at the moment of the break. The answer comes from the next level: if the high breaks and demand holds, it is a break (continuation). If the high breaks and demand also fails, it is a sweep (reversal). When the pullback zone itself gets swept (no liquidity in the leg), evaluate one more level — if the last point of supply/demand holds, the sweep is confirmed; if it also fails, continuation is confirmed. This two-level confirmation framework replaces guessing with systematic decision-making.
✓How to Recognize
- •Break: level taken out + next zone holds = continuation confirmed
- •Sweep: level taken out + next zone fails = reversal confirmed
- •Zone swept: evaluate the level after that for final confirmation
- •Combined with liquidity: no liquidity in leg = expect zone sweep or enticement first
⚡How to Avoid
- →Entering immediately on the break without waiting for the next zone reaction
- →Panicking when the first zone fails (could be IRL sweep, not reversal)
- →Not adding the liquidity layer when there is no structure in the leg
- →Waiting too long — the answer comes within 2-3 levels