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I Use This 1 Pattern Before Every Reversal

0h 09m video Published Jul 8, 2026 Transcribed Jul 31, 2026 J Jude Umeano
Intermediate 6 min read For: Traders with basic technical-analysis knowledge who want to improve entry timing and understand liquidity sweeps in gold, crypto, or forex.
AI Trust Score 68/100
⚠️ Average / Some Fluff

"Delivers a real, tradeable pattern with two chart examples, but the 'every reversal' promise is overblown — this is one context-dependent setup, not a universal rule."

AI Summary

This video explains the liquidity sweep — a price pattern where a candle wicks into stop-loss clusters before reversing. Using real gold and Bitcoin trades, the presenter shows why you should wait for lower-timeframe confirmation and how to target 3R-plus moves. You'll learn to spot sweeps, avoid getting hunted, and turn the pattern into a repeatable trading edge.

[00:03]
The liquidity sweep pattern

A candle wicking a price level right before price moves to take profit is called a liquidity sweep; it shows up before many profitable trades.

[00:45]
What liquidity really is

Liquidity refers to areas on the chart where many orders sit, mainly stop losses. Buyers place stops below recent lows, sellers place stops above recent highs, creating clusters.

[01:15]
Why smart money sweeps stops

Large players need volume to fill big positions. They push price into stop-loss clusters, turning stopped traders into forced buyers or sellers, which provides the required volume.

[01:53]
Gold trade setup on the 1H chart

After a change of character and break of structure, price retraces into a 1-hour supply zone. The plan is for price to tap the zone and then drop, but confirmation is required.

[02:34]
Wait for confirmation, not the initial tap

Entering immediately when price reaches the zone often results in getting 'hunted' by the liquidity sweep. Waiting for a confirmation entry on a lower timeframe avoids paying for liquidity.

[03:04]
Reading stop-loss clusters

A double high forms a liquidity pool above price where many traders place stop losses. Knowing where these sit helps you anticipate the sweep.

[03:47]
Wick versus body matters

If price only wicks a level without a candle body closing beyond it, the bias for the original direction remains. That wick is the sweep of liquidity.

[04:29]
Using Fibonacci after confirmation

Once a change of character confirms the move, the Fibonacci retracement tool sets the entry level. The target is at least 3R, and the stop goes above the swing high.

[06:15]
The mistake of entering on the first sweep

Taking a long position at the first sweep with a good risk-reward ratio like 3R often results in a stop-out. The solution is to drop to the 5-minute timeframe and wait for a break of structure and change of character.

[08:40]
A universal pattern across markets

The liquidity sweep works on gold, forex, and crypto — any chart with enough volume. The same confirmation principles apply everywhere.

The takeaway is clear: never trade the initial liquidity sweep; wait for a confirmed change of character on a lower timeframe. When applied with a 3R minimum and Fibonacci-based entries, the sweep becomes a reliable setup across gold, forex, and crypto.

Mentioned in this Video

Tutorial Checklist

1 01:53 Identify a supply or demand zone on a higher timeframe (e.g., 1-hour) after a change of character and break of structure.
2 02:20 Wait for price to reach the zone and look for a liquidity sweep — a wick that takes out the stop-loss cluster.
3 06:27 Do not enter at the first sweep. Switch to the 5-minute chart and wait for a break of structure.
4 06:41 Look for a change of character on the lower timeframe as confirmation that price will continue in your direction.
5 04:29 Use the Fibonacci retracement tool to set your entry level at a retracement of the last impulse move.
6 07:31 Place your stop loss beyond the swept liquidity level (above/below the wick) and your take profit at a minimum of 3R.
7 05:21 Let the trade play out — in the examples it took 3–4 days to reach the take-profit target.

Study Flashcards (7)

What is a liquidity sweep?

easy Click to reveal answer

A candle that wicks a price level (sweeping through stop-loss clusters) before price reverses and moves to take profit.

00:16

Where does liquidity typically accumulate on a chart?

easy Click to reveal answer

In clusters of stop losses: below recent lows for buyers and above recent highs for sellers.

00:45

Why do smart money participants push price into stop-loss areas?

medium Click to reveal answer

To fill large orders, because triggered stops create forced buyers/sellers that provide the needed volume.

01:28

What is the recommended way to avoid being stopped out by a liquidity sweep?

medium Click to reveal answer

Wait for a confirmation entry on a lower timeframe (e.g., 5-minute) — a break of structure and change of character.

06:27

What does the trader use the Fibonacci retracement tool for after confirmation?

medium Click to reveal answer

To set the entry level and project take-profit targets, aiming for at least 3R.

04:29

What was the risk-reward ratio on the Bitcoin trade example?

hard Click to reveal answer

4.49R, achieved by adding a Fibonacci projection expecting retracement to half of the position.

07:56

Which markets does the liquidity sweep pattern apply to?

easy Click to reveal answer

Any instrument with enough volume, including forex, gold, and crypto.

09:36

💡 Key Takeaways

🔧

Spotting the sweep before the move

Recognizing the wick right before a reversal gives an early warning of market manipulation.

00:16
⚖️

Smart money needs stop-loss volume

Explains why sweeps exist: large players need the volume generated by triggered stops.

01:28
⚖️

Always wait for confirmation

Entering on the first tap of a zone is a common way to lose; patience separates winners from losers.

02:34
📊

Gold trade delivered 3.09R

A concrete example of the pattern working over several days, proving the setup's viability.

05:21
📊

One setup across all markets

The pattern is not limited to crypto; it works on any liquid chart, increasing its utility.

08:40

[00:03] >> [music] >> netting a 3-hour profit. But if you look >> netting a 3-hour profit. But if you look closely, something happened right before There's [music] a candle that wicked that price level. If you look at this

[00:16] Bitcoin trade, it made even more money, 4.49R. But notice the same thing. A candle wicked that price [music] level before price went to take profit. This is called a liquidity sweep.

[00:32] In this video, I'm going to show you how to stop getting hunted by it, and how to to stop getting hunted by it, and how to actually use it to your advantage. So, >> [music] >> Liquidity on the chart is just a fancy

[00:45] word for places where a lot of orders are sitting, [music] mostly stop losses. When a trader buys, they place a stop loss below the recent low. >> [music] >> they place a stop loss above the recent

[01:01] high. Multiply that by thousands of traders, and you will have clusters of stop losses sitting in specific spots on the Now, smart money needs to fill large

[01:15] positions. To fill those positions, they need other people on the other side of And the easiest way to find that other side is to push price into the areas

[01:28] where everyone's stop losses are sitting. When those stop losses get hit, sitting. When those stop losses get hit, those traders become forced sellers or forced buyers, which gives smart money the volume they

[01:41] need to enter their own position. That push into the stops, that wick that the level out, that is the liquidity sweep.

[01:53] Now, let me show you how to trade this on a real chart. Okay, so this is a gold trade and we are on the 1 hour. If you look at this from back here, [music] we have a change of character, then price came up into retracement.

[02:05] we had a break of structure here. Price didn't to. Then we now have another break of >> And if you look at this, over here, we now have a 1 hour supply

[02:20] zone. So what is expected is this, that price come all the way to this region. Okay, tap into this, then we'll go down. That is the plan. But like I always say, you should always wait for confirmation in this region

[02:34] >> [music] >> this, like you just take your order from here, this way, most likely, you're going to pay for it liquidity. So you want to wait for that confirmation entry.

[02:50] >> [music] >> because a lot of people are doing this, that's exactly the same. The people are doing this, they put their stop loss in is a take profit. So a lot of liquidity is now lying

[03:04] >> This is where people are placing their stop loss. And if you watch my videos, you see sometimes I label this liquidity because we have a double high here. This a high here. This another high here. So this is liquidity lying here. So you

[03:18] structure, I am still favoring the price dropping below, but I want to wait to see confirmation. you [music] stop your stuff from being taken out by

[03:34] happens in [music] this trade. So if I played it, you can see that price came >> [music] >> But we did not have a candle body This is just a wick. >> [music]

[03:47] >> And because it's a wick, I am still positive in the price going down. To my video, I have to go down to the structure and change of character. So, from this trade

[04:00] this is clearly an internal breaker structure So, what I want to see is here taken out this place um taken out because if you look at

[04:14] this, it's actually a more [music] significant internal internal breaker structure here. So, let's see how this plays out. a change of character. So, because I have a change of character, two things

[04:29] looking to trade. So, I can now do this. This is now my internal change of character, which is a confirmation that this price is going to keep coming down. So, what do I do? Take my tool,

[04:43] Fibonacci retracement tool, place it here. This is my entry. Take take profit above below to this point, okay? Stop loss above here.

[04:55] >> [music] >> 1.76 least three. So, I'm going to take it higher until it gives me three. And for this right here, I got 3.09 in

[05:08] this trade. So, this is the trade. This is simply So, this is the trade. This is simply the trade I'm going to take.

[05:21] So, you see here that price came, took us in. This trade took 1 2 3 4 days, but >> we did hit take profit. So, this this is a good trade. Now, let's look at what happened with the Bitcoin trade. Okay, so this is a Bitcoin trade on the 1-hour

[05:34] >> [music] >> over here, and you can actually see this one live on YouTube [music] live that I hold for for cryptocurrencies on Tuesdays. So, To sure you attend my lives. So, I

[05:46] showed this one light and you will see that we had a supply zone field. Price has been going down. We actually had a sweep here. You can see that this is a sweep. A sweep also has a has a week. [music]

[05:58] So, this is a first sweep we had. They will not did supply zone um field and to come down and [music] go up. Now, the mistake you will make is this. and do this, let's say you take a long position from

[06:15] Okay? And you then do this. The mistake you will make is that you get a very good risk reward ratio, right? 3R is a very good [music] um trade. But,

[06:27] you'll get stopped out. And because you don't want to step get what you want to do is to wait for confirmation entry on the lower time frame. And that is what I always do. Go to the 5-minutes time frame and wait for

[06:41] break of structure and change of character. Let's now see how this plays character. Let's now see how this plays out when we do that.

[06:53] structure. Now, this is that [music] this is that week. frame, this is that [music] week even on the you will see it more clearly. This is that week

[07:06] >> that I will saw on the higher time frame. So, this is the week. This is the liquidity sweep [music] sweeping those who are putting their stop loss below this. Again, the confirmation entry makes it

[07:18] So, let's see what happens. So, since price has given us a change of character, what can we now do? It's simple. So, one is this. Simply take the long position to place it from this level,

[07:31] go take put your stop loss below here because we have seen that the confirmation entry to go higher, go ahead and put your stop loss your stop profit above here. Then, what should would do is make sure that your

[07:44] a three. >> [music] >> This is a trade. But what I did is this. I took an extra step. You can do this sometimes. We have to be experienced in the momentum.

[07:56] and used the Fibonacci tool. And I believe price is going to retrace to at least half of this position. That's how I got a 4.49 risk reward. Well, 4.49 risk reward is what I got for this particular trade.

[08:12] This trade actually took a want to switch to the 1-hour time frame now. weekend to to play out. So, let's see it. So,

[08:26] to to play out. So, let's see it. So, price came, tapped in, ranged through price came, tapped in, ranged through um um Saturday, uh Sunday, and by Monday it went straight to take profit. So, So, this is how to use

[08:40] liquidity sweep to take very good trades. If you want to see these trades exactly before I take them, use the link in the description to join my Telegram community. And you can also copy my trades automatically by connecting your

[08:53] trading accounts to Copy Me. Copy Me is a copy trading platform where real traders, including me, take this exact setup and your account follows along, sized to your own risk. So, while you are at work or asleep, your account is

[09:07] still in the market with someone who is actually watching the charts and trading. [music] The waitlist link is in the description of this video. If we have launched by the time you are watching this video, the platform link

[09:20] will be there instead. [music] Either ways, the people who will be ready when >> [music] >> Now, there's something I want you to The liquidity sweep doesn't just happen on crypto. It shows up on Forex, like I

[09:36] showed you, it showed up on gold as well, on anything with a chart [music] and enough volume. And in this next video, I did a full beginners Forex course for 2026. If you've been trading crypto and [music] you've been curious

[09:51] about Forex, that is the one you want to watch next.

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