How do you tell a real liquidity sweep from a breakout that keeps going?
I've been studying ICT concepts for a while, and one thing I still struggle with is telling a true liquidity sweep from a real breakout.
Here's my current checklist:
Price takes out an obvious high or low (equal highs/lows, previous day high/low)
Quick rejection with a displacement candle in the opposite direction
A fair value gap left behind
A market structure shift on the lower timeframe
The move happens during a killzone (London or New York open)
The problem is that sometimes all of this lines up and price still runs through the level.
Questions
What extra confirmation do you use before entering after a sweep?
Do you filter by higher-timeframe bias first, or only trust the lower-timeframe shift?
Do you wait for a retrace into the FVG or enter on the displacement itself?
Would love to hear how more experienced traders handle this. Thanks!