Overview
This lecture covers core execution strategies in trading, focusing on the concepts of liquidity sweep, break of structure, and order block entries, and provides practical steps for identifying these setups on charts.
Execution Strategies Overview
- Multiple execution strategies can be combined using trading building blocks.
- Today's focus: liquidity sweep + break of structure, and liquidity sweep + break of structure + order block entry.
Liquidity Sweep & Break of Structure
- Liquidity lies beneath recent lows or above highs in the market.
- A liquidity sweep occurs when price moves past these points, taking out stops or triggering orders.
- A break of structure (BoS) follows a liquidity sweep, confirming a change in market direction.
- After liquidity sweep and BoS, price tends to target other liquidity areas or imbalances.
Liquidity Sweep, BoS & Order Block Entry
- An order block is the candle that caused the liquidity sweep or break of structure.
- Entry is made when price returns to this order block after the BoS.
- This strategy increases precision and confluence in trade entries.
- Consistent repetition and practice of identifying these setups is crucial.
Practice & Building Confidence
- Repeatedly finding these setups on charts builds trading confidence and skill.
- These concepts apply across all timeframes and asset classes.
Key Terms & Definitions
- Liquidity — The concentration of orders below lows or above highs.
- Liquidity Sweep — A price move that triggers stop-losses or pending orders at key levels.
- Break of Structure (BoS) — A significant move that signals a shift in market trend direction.
- Order Block — A significant candle where institutional orders were filled, often leading to a reversal or strong move.
Action Items / Next Steps
- Find 10 examples of liquidity sweep + break of structure on any chart and observe price action afterwards.
- Find 10 examples of liquidity sweep + break of structure + order block entry and observe price movement.
- Repeat these exercises until identification becomes automatic.
- Prepare for the next session covering liquidity sweep BoS fair value gap entries.