Advanced Education
Extreme vs Decisional: The Liquidity Factor
Learn when to use Extreme entry for best R:R vs Decisional for safer trades. The answer lies in liquidity sweeps.
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Extreme vs Decisional
Which entry level should you use?
Every zone has two potential entry points:
• EXTREME: The outer edge of the zone
• DECISIONAL: Where the flip actually happened
The choice depends on ONE factor: Liquidity
Liquidity sweeps determine your entry level
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Liquidity is Key
Stop losses clustered above supply or below demand create liquidity pools. When swept, momentum is exhausted.
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Extreme = Best R:R
Use Extreme when liquidity is intact. You get 1:4 R:R but may miss some trades.
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Decisional = Safer
After a liquidity sweep, use Decisional. 1:2.5 R:R but higher probability of working.
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