📘 Let’s Break Down: Break of Structure vs. Liquidity Sweep (Fake-Out)
Most traders think they know what a fake-out is… but trust me, many are getting trapped by it every day.
So here’s a simple, powerful breakdown to help you spot the difference — and finally get on the right side of the trend. 🔥
✅ 1. Break of Structure (BOS)
(See chart example)
A true BOS follows the direction of the main trend. Here’s how you identify it:
✔ It aligns with the overall trend you're trading
✔ Price breaks a key structural level with strong momentum
✔ After the break, price continues in the same direction
✔ Structure stays bullish or bearish as long as price holds above/below the breakout level
Use BOS to confidently ride the trend.
❌ 2. Liquidity Sweep / Fake-Out
(See chart example)
A fake-out is a trap. It looks like a breakout, but it’s moving against the bigger trend.
✔ It usually forms in the opposite direction of the main trend
✔ Price breaks out, grabs liquidity…
✔ …then quickly dives back inside the broken zone
✔ Sometimes it’s just a wick; sometimes 1–3 candles close above before reversing
Use fake-outs for countertrend setups or to expect short-term corrections.
Pro Tip for Beginners
Start identifying these patterns on the 4H timeframe and above.
Lower timeframes move too fast and can confuse new traders.
Mastering BOS vs. Fake-Out is one of the fastest ways to avoid traps — and trade with smart money instead of against it.🔥📈
