XAUUSD delivered a textbook sellside liquidity sweep during the London session. After the higher timeframe sweep alert from ScanLiquidity, lower timeframe confirmation formed through displacement, iFVG reaction, and an M1 FVG rejection, leading to a clean 1:2 long execution.
HTF H1 Context
H1 bullish structure with price sweeping sellside liquidity before reversing higher.
XAUUSD was already trading in a strong H1 uptrend. Because of that higher timeframe context, any aggressive move below major swing lows had a higher probability of becoming a liquidity sweep rather than a true bearish continuation.
During the London session, price pushed below a key swing low, taking out sellside liquidity before quickly reversing back into range. This is where the ScanLiquidity H1 sweep alert triggered.
The failed breakdown aligned well with the existing bullish higher timeframe structure, making long opportunities more attractive on the lower timeframe.
The Alert
Real time H1 sellside liquidity sweep alert triggered by ScanLiquidity.
The alert immediately caught my attention because the sweep occurred directly against the higher timeframe bullish trend. Instead of chasing the initial reversal, I waited for lower timeframe confirmation before considering execution.
M1 Execution
Price reacting from M1 FVG after displacement following the H1 liquidity sweep.
Here is how I approached the execution after the H1 sweep:
-
Displacement
After the liquidity sweep, price showed strong bullish displacement on M1, confirming that buyers were stepping in aggressively.
During the reversal, price formed an iFVG while leaving behind a bullish imbalance. -
Structure Shift
Although price did not produce a strong close above structure for a textbook CHoCH confirmation, the iFVG reaction and bullish displacement were enough confirmation for my execution model. -
FVG Rejection
Price pulled back deeper into the M1 Fair Value Gap before rejecting strongly on the next candle. That rejection became the entry trigger for the trade.
Trade Summary
| Metric | Value |
|---|---|
| Pair | XAUUSD |
| Direction | Long |
| HTF Bias | Bullish |
| Entry Timeframe | M1 |
| Confirmation | iFVG + FVG rejection |
| Session | London |
| Risk Reward | 1:2 |
Why This Setup Worked
In strong higher timeframe trends, liquidity resting below major swing lows often becomes a target before continuation higher. The sellside sweep aligned perfectly with the existing H1 bullish structure, increasing the probability of a reversal rather than continuation lower.
Once lower timeframe confirmation appeared through displacement and FVG reaction, the setup offered a clean and defined execution model with favorable risk to reward.
The combination of:
- Higher timeframe bullish bias
- H1 liquidity sweep
- M1 displacement
- iFVG reaction
- FVG rejection
made this a high probability setup.
What Would Invalidate This Setup?
If price failed to hold the bullish displacement leg and started accepting below the swept H1 low, the bullish setup would become invalid.
In that scenario, the sweep would no longer be considered a failed breakdown, and continuation lower would become more likely.
For educational purposes only. Not financial advice.
