Most traders get liquidated because they can’t tell the difference between a real breakout and a liquidity sweep. Let me break it down:
Real Break of Structure (BoS)
Moves in the direction of the overall trend
Breaks a key level with solid momentum and STAYS there
Price holds above/below the breakout zone = trend is still intact
Use this to ride the trend hard
Liquidity Sweep / Fake-Out
Goes AGAINST the main trend
Breaks the level, then pulls back inside it just as quick (could be just a wick)
This is the market shaking out weak hands
Can use this for counter-trend plays or expect a correction before the trend resumes
Real Talk: Both are tradeable, but if you’re new, stick to 4H+ timeframes. Lower TFs will confuse the hell out of you. The key is seeing which one holds and which one doesn’t.
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Spot Fake-Outs Before They Wreck Your Trade
Most traders get liquidated because they can’t tell the difference between a real breakout and a liquidity sweep. Let me break it down:
Real Break of Structure (BoS)
Liquidity Sweep / Fake-Out
Real Talk: Both are tradeable, but if you’re new, stick to 4H+ timeframes. Lower TFs will confuse the hell out of you. The key is seeing which one holds and which one doesn’t.