Trading model: sweep, MSS and FVG entry

Overview

This model combines the concepts seen so far. Note: it is a teaching example to learn how to write precise rules. It is not a strategy proven to be profitable: it must be tested with the method in module 4.

Conditions, in order

• 1. Daily bias defined (for example bullish) and a killzone active
• 2. Price sweeps a sell-side liquidity level (for example the low of the Asian range) and returns
• 3. On the execution timeframe (M5 or M15) a market structure shift (MSS) appears in the direction of the bias, with strong candles
• 4. The move leaves a fair value gap (or an order block)
• 5. Wait for the retracement into the FVG, ideally in the discount zone or OTE
• 6. Enter at market or with a limit order, with confirmation on the lower timeframe if you want fewer false signals

Stop loss and target

• Stop: below the low of the sweep (in the bullish case), with a small buffer for the spread
• First target: the last internal swing high or the equilibrium of the range
• Final target: the next buy-side liquidity (previous day's or week's high)
• Minimum ratio: don't enter if the risk/reward to the first target is below 1:2

When not to enter

• If the MSS happens without a real sweep first
• If the target is too close relative to the stop
• If less than half an hour remains before a high-impact announcement
• If you have already hit the maximum daily loss

Write it as a rule

Every item above must become a sentence you can verify with yes or no. 'A move with strong candles' is not one; 'a candle with a body larger than 1.5 times the ATR that closes beyond the swing' is. This precision is what lets you test the model and, in module 5, automate it.