Fake Breakout Entry Strategy (Weekly Candle Model)

If you trade breakouts, you've probably noticed something. Price breaks the level you enter, and then it immediately reverses. That's not bad luck. That's by design. Here's what most traders are taught. Resistance forms, price breaks above. You buy the breakout. It makes sense logically. Momentum, strength, confirmation. But then price wicks above and dumps, and this happens over and over again. The market doesn't break levels to continue. It breaks levels to collect orders. Above resistance, buy stops, breakout traders entering, liquidity sitting. Institutions need liquidity to move price. So what do they do? They push price above the level, trigger entries, fill orders, then reverse. That's the liquidity sweep. If you look at this weekly high or range high, do you notice something? Every big move first sweeps liquidity, then shifts structure, then continues. The breakout isn't the entry. The sweep is the setup. Instead of buying breakouts, I wait for the sweep. Here are the steps. Number one, liquidity taken from a weekly high or a weekly low, or a key liquidity level. Number two, you wait for a structure shift. And number three, you enter on the CISD or the fair value gap inversion. That's why entries aren't random. Let's dive onto the charts, and I'll show you a live example. Here we are on the charts, and I'm trading a cryptocurrency token, but you can trade any asset class. It will work on any market. So the key concept here is you can see price has arrived at a key level. This level can either be a weekly high, a daily high, a monthly high, fair value gap. The thing that matters is price is arriving at a liquidity level, which I refer to as key levels. When price taps into the liquidity, this is where you wanna pay close attention, and I'll show you exactly what happens to most traders. As soon as price arrives in the liquidity area, you'll notice that you get these breakouts that occur. When these breakouts happen, this is where majority of retail traders enter their trades. They see this breakout, they enter their long position, they put their stop loss below, and they look to trade the next relevant level. But what happens? All of a sudden, price reverses and liquidates them, and I'm sure a lot of you have experienced this over and over. Let me show you how to trade this and avoid the traps. Let's do this over, and right now, I've activated the SMCX indicator, which is gonna help us go through this process. It shows us the higher time frame candles on the right and the lower time frame candles on the left. And you can see over here, we have a failure to displace pattern happening. This is a strong sign we're getting rejection at this area. But first, we need to wait for the manipulation to occur. You can see right now, price is going into accumulation. After accumulation, we get manipulation, then we get distribution. So we want to wait for the manipulation to play out, and there you go. You can see this is pure manipulation whenever we get these aggressive movements that happen. These are designed to trap and trick you. Then we wait for price to come back into the range. As you can see over here, this candle has come back into the range, and that is our signal to look for an entry. We're going to enter on the break of the CISD. The CISD level is gonna be that point that shows us the structure is shifting. Once the structure shifts, this is a confirmation for us to look for an entry. As soon as price breaks the CISD level, that's where we look for our short entry on the candle close. We can place our stop loss above the swing highs if we want to be safe or above the key level. And then for targets, we can look for a relevant liquidity level. I'm going to use this fair value gap region over here as my target. So this is my setup. Also keep in mind, when we get displacement, you can see we've got this displacement to the downside that breaks the CISD. It leaves behind a fair value gap, and this can also be an entry. Price doesn't always retrace to this level, but you have two potential entries. You can enter on the break of the CISD, or you can set your entry here and wait for price to tap into the fair value gap and look for a better target. So let's play this out. You can see price tapped directly into that fair value gap. So you can either enter one position at the break of the CISD and another position on the fair value gap, or just a full position on one or the other. Let's play this out. And there you go, price tapped into our target. Let me just do a recap. So the key we want to look for is you want to ensure that the manipulation happens first. Once the manipulation happens, we want to see a break of the CISD because that confirms the reversal. You always want to trade against and in the opposite direction of where a manipulation happens. If you break out trading this, you're going to get caught in the trap. So the key is you want to wait for the manipulation to happen first, then look for the entry and trade with the liquidity. This is exactly why I built SMCX. It marks liquidity, detects sweeps, shows CISD automatically, and helps you avoid breakout traps. If you're still trading breakouts blindly, you're feeding liquidity. Click the link below. We have a free trial to test it out. If you want to know more about this incredible strategy, then click this link now to watch this next video. Click the link and dive right in.