— study — 2026-07-05

June 17, 2026 Displacement review

In this case ing into the day would have been a 50/50 day given that we ranged over night in this situation. We would have had liquidity on both sides to consider and both sides in this case were swept. There was a NWOG that hadn't been traded into so though bullish, there would be a need to consider a sell off to close/trade into the gap, meaning a sell off was potentially available. We would have to look out for a failed sweep or a sweep and failure into the range.

In this example, we had an internal sweep and failure, which we left/failed the ERL and swept the IRL failing into the range and expanded lower.

5m Chart - 9:15 (L) and 9:45 (H) swing are both swept. We left a 10:00 (L) and then swept the 9:45 (H) on the 10:15 candle and this is where the set up comes from. 5m-FVG that is not immediately traded back into and eventually uses the 5m-FVG (L)

15m Chart - sweeps the 9:45 (H) and confirms the IRL taken and the closure followed by the next candle lower confirms the potential move lower. 15m-FVG that is not immediately traded back into and eventually uses the 15m-FVG (H)

1H-chart - the 10am candle leaves a wick and price on the following 11-1pm candles cannot trade higher than the middle of the wick and later sell off from that point. The wick is a bearish signal and body of the candle is 9 points but, the wick is 23 points.