A confirmed change in market structure (often called a BOS or CHoCH) after a liquidity grab typically requires a strong, displacement candle that decisively breaks the most recent swing high or low that protected the swept liquidity level. Wait for a clear body close beyond that structural point rather than just a wick rejection.
When trading funded accounts, waiting for this confirmation helps protect your daily loss limits by keeping you out of fakeouts. Impulsive entries right on the sweep can easily trigger drawdown limits if the market continues trending. Always align your structure breaks with strict risk management.
How do you personally filter out fake liquidity sweeps in your strategy? Drop your thoughts below!