The Trade#
Instrument: MNQ (Micro E-mini Nasdaq-100)
Direction: Long
Session: late morning, around 11:30 to 11:45 AM ET
Model: discount FVG entry after a sellside sweep and BOS
Result: ✅ WIN, about +305 points to target, roughly 1:6.7
Draw on Liquidity#
The move started with a sellside sweep at the lows, price running the liquidity resting under the session low. Down there it left a stacked 5m iFVG and 3m iFVG, the imbalances that turned the market back up. Off that sweep price put in a break of structure to the upside, which flipped intent bullish. Now the draw was the other side of the range, the buyside liquidity sitting up at the highs around 29,020. The plan was to buy a discount on the pullback and target that buyside.
The Setup#
- Sweep: sellside taken at the lows, with a 5m iFVG and 3m iFVG left behind
- BOS: break of structure to the upside confirmed the shift
- Equilibrium: price rallied, then retraced back near the 50% equilibrium of the range (around 28,650)
- Entry: long off the 3M FVG around 28,717, a discount entry that price respected multiple times before going
- Stop: 28,672, just below the FVG, about 45 points of risk
- Target: buyside liquidity at the highs, 29,020 to 29,027
- R:R: about 45 points risk for about 305 points, roughly 1:6.7
How It Played Out#
This one made me wait. Price rallied off the sweep, then came all the way back down to the equilibrium and sat on the 3M FVG. It tapped the gap more than once and held every time, which was the confirmation I needed. Buying that discount instead of chasing the first move up is what set up the reward. Once it left the FVG it ran clean into the highs and took the buyside liquidity right where I was targeting.
Key Lesson#
Premium and discount is the whole edge here. I swept the lows, shifted structure up, then let price come back to a discount at the FVG before buying, targeting the premium buyside at the highs. Patience for the retrace into equilibrium is what turned 45 points of risk into a move worth six or seven times that. Do not chase, let price come to the discount.
Educational purposes only. This is my personal analysis, not financial advice. Always do your own research and never risk more than you can afford to lose.