Ever wondered about the difference between a Break of Structure and a Liquidity Sweep/Fakeout?
đ Itâs a common question, so let's break it down and help you master this key trading concept. Knowing the difference can be your edge in avoiding false signals and staying on the right side of the trend! đ
Break of Structure:
đž Aligns with the overall trend direction.
đž Breaks a key structural point with strong momentum, continuing to trade above or below that break, depending on whether the trend is bullish or bearish.
Liquidity Sweep/Fakeout:
đč Typically moves against the trend of the timeframe you're trading.
đč Breaks out of structure only to quickly retreat back inside, often leaving just a wick or a brief candle close above the structure before dropping back.
Knowing these patterns can help you spot false shifts in market structure and keep you trading with confidence. Stay sharp, traders! đ
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