Kardec Trader explains how price sweeps liquidity at lows and highs to trigger entries, creating false moves that trap traders. The key is patience: wait for the liquidity sweep instead of chasing the initial move.
I was actually looking at Euro personally and we were here and I was like, okay, this is where I want us to get to. And I remember you saying how this is really all you can see price taking out because below that point there's no liquidity. And then what ended up happening is price did come down, but we swept liquidity new highs.
We're now taking out this low over here. Sellers are going to be looking to take entries where below this high. And that's going to be what I'm going to be viewing as what's called a trap. This move from A to B, from low to high, this is where a lot of traders, they can't wait for this move to happen again from A to B. If you learn how to sit on your hands, stay patient, wait for this, essentially this false move to occur, you'll avoid a lot of losses.
