Why Your Perfect Trade Failed
45sIt taps into the frustration of traders who lose money on seemingly perfect setups, promising a solution.
βΆ Play ClipAI Summary
This video addresses a common trading mistake where traders enter on a break of structure without proper confirmation. The presenter explains why a wick above a high is insufficient and demonstrates the correct criteria for a valid break, leading to a winning trade.
Chapters
[00:00]
The Losing Trade Setup
A trader sees a break of structure and a fair value gap, sets a stop loss below the liquidity break and a take profit at the recent high, but the trade loses.
[00:27]
Identifying the Weak Break
The flaw is that price wicks above the high but does not close above it with speed and distance, indicating a weak break.
[00:42]
The Winning Break Criteria
A valid break requires the candle body to close above the break of structure with speed and distance.
[00:55]
Entering the Winning Trade
After a confirmed break, enter at the fair value gap as normal, resulting in a winning trade.
Tutorial Checklist
Study Flashcards (3)
What is the key confirmation for a valid break of structure?
easy
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What is the key confirmation for a valid break of structure?
easy
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The candle body must close above the break of structure with speed and distance.
00:42
What does a wick above the high without a close indicate?
medium
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What does a wick above the high without a close indicate?
medium
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A wick above the high without a close above it indicates a weak break.
00:27
Where should you enter the trade after a valid break?
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Where should you enter the trade after a valid break?
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Enter at the fair value gap after a confirmed break of structure.
00:55
π‘ Key Takeaways
π§
Close Above Break of Structure
This is the core actionable rule that separates winning from losing trades.
00:42
π‘
Weak Break Identification
Recognizing a wick-only break helps traders avoid false signals.
00:27Full Transcript
[00:00] You get your break of structure. Then you get your fair value gap. The perfect trade You set your stop loss below this liquidity break and set your take profit at the recent high. You enter the trade ecstatic and are ready for
[00:14] What happened? Why was this a losing trade? You see, this trader did have the right idea but there s something very wrong with this trade. After this liquidity sweep, price does a break
[00:27] When doing this break, it doesn t close above this high with speed and distance. It just wicks What we are looking for is something like this. Where, when breaking this break of structure,
[00:42] price breaks through it strong and hard. But the key thing we are looking for is that it that the body of the candle closes ABOVE the break of structure like this. Now that we have a break of structure with speed and distance and closes above the break.
[00:55] We can enter at the fair value gap like normal. And now we have a winning trade.
