XAUUSD swept hourly sellside liquidity during the Asian session before reversing aggressively higher. After the higher timeframe alert from ScanLiquidity, lower timeframe confirmation formed through a bullish CHoCH and FVG rejection, leading to a clean 1:2 long setup.
HTF H1 Context
XAUUSD sweeping hourly sellside liquidity before reversing higher.
XAUUSD was trading near in a range in higher timeframe and broke a swing low during the Asian session. Price pushed below the low, taking sellside liquidity resting underneath the range.
Instead of accepting lower prices after the sweep, buyers stepped in aggressively and reclaimed the level quickly. That reaction suggested the move below the hourly low was likely a liquidity sweep rather than true bearish continuation.
This is where the ScanLiquidity H1 alert triggered.
The Alert
Real time hourly sellside liquidity sweep alert triggered by ScanLiquidity.
The alert immediately caught my attention because the sweep happened directly into a key hourly low. Once price reclaimed the level, I shifted focus toward lower timeframe bullish confirmation instead of chasing shorts into the low.
Rather than entering immediately after the alert, I waited for structure confirmation and a cleaner entry model on M1.
M1 Execution
Bullish CHoCH followed by FVG tap and rejection on M1.
Here is how I approached the execution after the hourly liquidity sweep:
-
Bullish CHoCH
After taking liquidity below the hourly low, price formed a clean bullish CHoCH on M1.
This was important because it showed that buyers were reclaiming short term structure after the sweep. -
FVG Formation
The bullish displacement created a clean M1 Fair Value Gap during the move higher.
Instead of entering impulsively, I waited for price to retrace back into the imbalance. -
FVG Tap + Rejection
Price retraced into the bullish FVG and reacted strongly from the zone.
That rejection became the confirmation for entry, with stops positioned below the displacement leg low.
Trade Summary
| Metric | Value |
|---|---|
| Pair | XAUUSD |
| Direction | Long |
| HTF Bias | Bullish reversal |
| Entry Timeframe | M1 |
| Confirmation | CHoCH + FVG rejection |
| Session | Asian |
| Risk Reward | 1:2 |
Why This Setup Worked
The sweep below the hourly low created the conditions for a reversal by taking out sellside liquidity resting underneath the range.
Once price reclaimed the level and shifted lower timeframe structure bullish through CHoCH and displacement, the probability of continuation higher increased significantly.
The combination of:
- Hourly sellside liquidity sweep
- Strong reclaim after liquidity
- Bullish CHoCH
- M1 displacement
- FVG retracement and rejection
created a clean reversal setup with clearly defined risk.
What Would Invalidate This Setup?
If price failed to hold above the bullish displacement leg and started accepting back below the swept hourly low, the bullish reversal thesis would weaken significantly.
That would suggest sellers were regaining control and the liquidity sweep failed to produce continuation higher.
For educational purposes only. Not financial advice.
