EURUSD swept hourly buyside liquidity into an H1 FVG during the London session before reversing lower. After the higher timeframe alert from ScanLiquidity, lower timeframe confirmation formed through a bearish CHoCH and FVG rejection, leading to a clean 1:2 short setup.
HTF H1 Context
EURUSD sweeping buyside liquidity near H1 Fair Value Gap before reversing lower.
EURUSD was already trading bearish on the higher timeframe. During London session, price took liquidity resting above an hourly swing high.
Instead of continuing higher after taking the highs, price started showing weakness. That immediately made me cautious about longs and shifted my focus toward lower timeframe bearish confirmation.
This is where the ScanLiquidity H1 alert triggered.
The Alert
Real time hourly buyside liquidity alert triggered by ScanLiquidity.
The alert caught my attention because liquidity was taken directly in a higher timeframe bearish structure, this looked more like a setup for reversal rather than continuation higher.
Still, I did not want to enter blindly from HTF levels. I waited for lower timeframe confirmation before looking for execution.
M3 Execution
Bearish CHoCH followed by FVG tap and rejection on M3.
Here is how I approached the execution after the hourly buyside sweep:
-
Bearish CHoCH
After taking the hourly highs, price formed a bearish CHoCH on M3.
That was the first sign that buyers were losing control and short term order flow was shifting bearish. -
FVG Formation
The bearish displacement created a clean bearish FVG during the move lower.
Instead of entering immediately, I waited patiently for price to retrace back into the imbalance. -
FVG Tap + Rejection
Price tapped the bearish FVG and rejected from the zone cleanly.
That rejection became the entry trigger for the short trade.
This one actually tested my patience a bit because price spent quite some time moving sideways after entry before finally delivering the move lower.
Trade Summary
| Metric | Value |
|---|---|
| Pair | EURUSD |
| Direction | Short |
| HTF Bias | Bearish |
| Entry Timeframe | M3 |
| Confirmation | CHoCH + FVG rejection |
| Session | London |
| Risk Reward | 1:2 |
Why This Setup Worked
The higher timeframe bearish bias already favored shorts. Once price swept buyside liquidity, the probability of reversal increased significantly. Although I was waiting for H1 FVG tap but it didn’t happen.
The lower timeframe CHoCH confirmed the shift in order flow, while the FVG retracement provided a cleaner and lower risk entry.
The combination of:
- Higher timeframe bearish structure
- Buyside liquidity sweep
- Bearish CHoCH
- FVG tap and rejection
created a solid confluence based setup.
What Would Invalidate This Setup?
If price started accepting above the swept highs, the bearish setup would weaken significantly.
That would suggest buyers were still in control and the sweep failed to produce reversal.
For educational purposes only. Not financial advice.
