Free course · Lesson 9 of 14

Sweep or breakout?

The days we stay out, and why that matters.

Step by step

1. Same Asia box, same stop losses above the high.
2. Price goes above the high, but this time the candle closes above it.
3. Candles keep closing above the high and price keeps going. That’s a breakout: real buying. Selling against it would mean fighting the market.
4. Reversal or continuation? Ask three questions. Did it close back inside quickly? Did it break the last swing the other way (a CHoCH)? Was the morning balanced, not one long run? Three yeses: reversal. Closes beyond and no CHoCH: continuation.

Remember: Sweep: pokes through and comes straight back, so we trade the reversal. Breakout: closes beyond and stays there, so we never fade it. Most days that just means no trade. (Trading with it is an optional extra, covered at the end of the course.)