After years of trading, I noticed a pattern where the market forms three consecutive highs before reversing. The third high often acts as a liquidity grab, trapping buyers before price drops.
How It Works:
First High – Establishes resistance.
Second High – Confirms liquidity above.
Third High – Triggers a stop hunt, followed by a reversal.
If the second high’s order block wasn’t mitigated, price tends to return to it before the drop. This pattern works best when combined with liquidity sweeps, Fair Value Gaps (FVGs), and market structure shifts (MSS) for confirmation.
🔸 Disclaimer: This is based on my personal observations and may not work in all market conditions. Always trade with caution, backtest thoroughly, and use risk management.
How It Works:
First High – Establishes resistance.
Second High – Confirms liquidity above.
Third High – Triggers a stop hunt, followed by a reversal.
If the second high’s order block wasn’t mitigated, price tends to return to it before the drop. This pattern works best when combined with liquidity sweeps, Fair Value Gaps (FVGs), and market structure shifts (MSS) for confirmation.
🔸 Disclaimer: This is based on my personal observations and may not work in all market conditions. Always trade with caution, backtest thoroughly, and use risk management.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.