---
title: 'Don''t Make This Trading Mistake'
source: 'https://youtube.com/watch?v=0f2f8w_fCPY'
video_id: '0f2f8w_fCPY'
date: 2026-08-19
duration_sec: 84
channel: 'TradingLab'
---

# Don't Make This Trading Mistake

> Source: [Don't Make This Trading Mistake](https://youtube.com/watch?v=0f2f8w_fCPY)

## Summary

This video explains how to distinguish between a valid and a fake break of structure in trading. The creator emphasizes the importance of sweeping liquidity before a breakout to confirm its validity. The video uses a specific example to illustrate the difference between a real and a fake breakout, highlighting a common mistake traders make.

### Key Points

- **The Fake Break of Structure** [00:01] — A candle closing above a previous high is often mistaken for a valid break of structure. However, this can be a fake signal if no liquidity was swept beforehand.
- **The Missing Liquidity Sweep** [00:26] — A break of structure is only valid if it is preceded by a sweep of liquidity, such as taking out a swing low. Without this, the breakout is likely a trap.
- **The Valid Break of Structure** [00:51] — A valid break of structure occurs when price sweeps liquidity before breaking a high. This confirms the move has enough momentum to be a real breakout.
- **The Outcome** [01:15] — When a valid break of structure occurs, price is expected to continue in the direction of the breakout, leading to a successful trade.

## Transcript

thousands and you probably don't even know what it is. So, a lot of traders when they see this setup, they have a candle that closes above the high and they think this is a break of structure to the upside. But what if I told you
this is actually a fake breakup structure and is exactly why you were losing so many trades. The majority of traders after seeing this will enter a long trade and set their stop-loss right here expecting price to continue this
uptrend. You see, before breaking the structure, we never swept any liquidity and we didn't take out any swing lows. That means this is not a real break of structure. It's a trap. And if you put your stop loss right here, it's likely
to get swept. In order for a break of structure to be valid, it first needs to sweep liquidity. This is one of the key aspects you need to understand for a successful trade setup. All right, so say if we got this setup, is this a real
breakup structure or a fake one? Let's break it down. First step, we see that this candle closed above this high. So, we have an attempt at a break of structure. But the key difference here is that before doing this, we actually
swept liquidity before breaking this high, which is exactly what we're looking for. Since we got the sweep on liquidity before our breakup structure, that means it's a valid breakup structure. And now you know exactly
for price to play out. And now the breakup structure does exactly what it should do and goes up. Tag a trader who needs to hear