19.1Question 1 - Entry, Stop and Target
Price is returning into a bullish FVG. Where do you enter, where does the stop go, and what is the first target? Write the numbers down yourself.
Answer
Entry 105.4 at the CE, stop 104.2 below candle one, TP1 108.2 (1:2.2), TP2 111. The lesson: the CE gives the best R, and a stop placed inside the gap is simply liquidity.
19.2Question 2 - BOS or Sweep?
Price appears to have broken the previous high. Is it a break of structure or a liquidity sweep? Give your evidence.
Answer
It is a sweep: the candle traded above the high but closed back below it. A BOS needs a body close. Read the close, not the wick.
19.3Question 3 - Premium or Discount?
Range 100 to 112, price at 106. May you buy here? If not, where do you wait?
Answer
106 is exactly 50 percent - equilibrium. A long here puts stop and target at almost equal distance. Wait for discount, 100 to 104, ideally the OTE pocket at 102.6 to 103.9.
19.4Question 4 - What Is Wrong Here?
A trader shorts a tiny gap at 14:30 Dhaka with no sweep and no displacement. What is wrong?
Answer
Four failures: no liquidity sweep, no displacement, outside any killzone (lunch lull), and no identifiable draw on liquidity. That is not a model, it is a drawing.
19.5Question 5 - Where Does The Stop Go?
You are long from the order block at 104.5. Is the stop 103.8 or 103.1, and why?
Answer
103.1, below the OB. A stop at 103.8 sits inside the zone exactly where retail parks it, and it gets swept. Three extra pips of risk keeps the trade alive.
19.6Question 6 - Time and Model Selection
It is 19:40 Dhaka. Price has just swept the Asian low. Which model applies, and what is still required before entry?
Answer
19:40 Dhaka is 08:40 New York, the NY AM killzone. Model 05 applies, and Model 01 opens at 20:00 Dhaka. Before entry you still need a 5-minute MSS with an FVG.
Educational material only · not financial advice.