Most traders chase once the trend is obvious.
But reversals always begin the same way:
🧲 Liquidity gets swept
📉 A structural break occurs
🧠 Price leaves behind a footprint (FVG or OB)
🐋 Smart money shifts direction
Let’s break down how to trade that shift step-by-step 👇
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🔁 Step-by-Step Early Reversal Strategy
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🔍 1. Find a Liquidity Pool at the End of a Trend
At the end of trends, price usually targets:
• Equal highs/lows
• Swing extremes
• Session highs/lows
• OBs or inefficiencies (imbalances)
📌 These act as magnets — price grabs liquidity before reversing
✅ You want to mark those zones and wait
⛔ Do NOT enter before the sweep!
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💣 2. Watch for a Violent Liquidity Sweep
This is the “trap” phase:
• Quick spike into the zone
• Wicks up (or down) and immediately rejects
• Often comes with divergence (CVD, RSI, OBV)
🧠 Smart money is offloading or accumulating here while retail gets faked
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💥 3. Wait for BOS (Break of Structure)
This is the first confirmation of a reversal 🔓
• Price breaks an internal high/low
• Momentum shifts
• Liquidity sweep + BOS = strong reversal probability
📌 This BOS is not the entry — it’s your green light
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⚡ 4. Identify the FVG or OB Left Behind
On the BOS move, price usually leaves:
• A Fair Value Gap (FVG)
• An Order Block (OB)
→ This is where smart money left unfilled orders
→ Price will often pull back to this zone before expanding again
🪧 Mark it as your entry area
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🎯 5. Enter on the Retest + Confirm
Now wait for price to come back to the FVG or OB.
Look for:
• Wick rejection
• Bullish/bearish engulfing candle
• Volume spike / absorption
• CVD divergence
🔥 Entry = in the zone
🛡 SL = behind the zone or wick
🎯 TP = opposite side liquidity or internal inefficiencies
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🧠 Bonus Trigger Checklist:
✅ Liquidity sweep
✅ Clean BOS
✅ FVG/OB as confluence
✅ Confirmation candle (engulf / wick)
✅ Optional: CVD or volume divergence
If all 5 align → you’ve got a high-probability early reversal setup 🔥
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Example Flow:
• Price in downtrend
• Sweeps a key low (equal lows or OB)
• Instantly wicks back up
• Breaks internal high = BOS
• Leaves bullish FVG
• Retest into FVG → wick + volume spike
→ Entry → Ride it up to next supply/liquidity level 💰
This works for scalps, swings, and even intraday on news-based traps.
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📌 Catching early reversals means:
→ You buy where others sell
→ You sell where others get trapped
→ You ride the wave before it’s obvious
That’s real smart money trading 🧠🔐
#ZeroCostEducation $HUMA