In lesson 2, we drew out our liquidity from the previous session. Now, we’re ready to execute trades in the 5-minute time frame. After the sweep of liquidity, we’re looking for a break of structure in the opposite direction.
Would I usually take both of these trades?
Probably not, but both worked out and exhibit good risk management. For each trade, the reward was a little better than the risk.
Key elements in my trade setup:
Risk to reward is at least 1:1.
If it’s not, I can look for price to retrace into an order block or fair value gap.
Stop loss set at previous lows.
Target profit set at previous highs.
Hopefully, these lessons have helped you understand the strategy that we will be using. If you still have questions, I recommend messaging me on Discord and trading live with me so you know my every thought as we take trades.