EURUSD ran sellside liquidity during the London session before continuing lower. After liquidity was taken, price formed a bearish BOS on M1 followed by an FVG tap and rejection, leading to a clean 1:2 continuation short setup.
HTF H1 Context
EURUSD running hourly sellside liquidity before bearish continuation.
EURUSD was already trading with bearish higher timeframe structure. During the London session, price pushed below an hourly swing low, taking sellside liquidity before continuing lower.
Instead of reversing aggressively after taking liquidity, price showed weakness and continued accepting lower prices. That immediately shifted the focus toward continuation shorts rather than reversal longs.
The liquidity run effectively acted as fuel for further bearish expansion.
The Alert
Real time hourly sellside liquidity run alert triggered by ScanLiquidity.
The alert immediately caught my attention because the higher timeframe structure was already bearish. Once liquidity below the hourly low was taken, I started monitoring lower timeframe to see if it aligns with higher timeframe context.
Rather than entering immediately after the alert, I waited for lower timeframe structure confirmation and a clean retracement entry.
M1 Execution
Bearish BOS followed by FVG tap and rejection on M1.
Here is how I approached the execution after the hourly liquidity run:
-
Bearish BOS
After liquidity was taken, price formed a clean bearish BOS on M1, confirming that sellers were still in control. This was important because it showed continuation order flow instead of bullish displacement after the liquidity event. -
FVG Formation
The bearish displacement created a clean M1 Fair Value Gap during the move lower.
Instead of entering impulsively, I waited for price to retrace back into the imbalance. -
FVG Tap + Rejection
Price retraced into the bearish FVG and rejected immediately from the zone.
That rejection became the confirmation for entry, with stops positioned above the imbalance high.
Trade Summary
| Metric | Value |
|---|---|
| Pair | EURUSD |
| Direction | Short |
| HTF Bias | Bearish |
| Entry Timeframe | M1 |
| Confirmation | BOS + FVG rejection |
| Session | London |
| Risk Reward | 1:2 |
Why This Setup Worked
The higher timeframe context already favored bearish continuation. Even after taking sellside liquidity, price failed to show any meaningful bullish acceptance.
Once M1 structure shifted bearish through displacement and BOS, continuation probability increased significantly.
The combination of:
- Higher timeframe bearish bias
- Hourly liquidity run
- M1 bearish BOS
- FVG retracement
- Strong rejection from imbalance
created a clean continuation setup with clearly defined risk.
What Would Invalidate This Setup?
If price reclaimed the bearish FVG and started accepting back above the BOS area, the bearish continuation thesis would weaken significantly.
That would suggest the liquidity run failed to produce continuation and buyers were regaining short term control.
For educational purposes only. Not financial advice.
