@liogle1: Most breakouts fail because price breaking a level doesn’t automatically mean the market wants to continue in that direction. In SMC/ICT terms, a lot of “breakouts” are actually liquidity grabs. Why breakouts fail 1. Liquidity is sitting beyond the level Above a previous high, you’ll often find buy-side liquidity—especially stop losses from sellers and breakout buy orders. Price can push above the high, trigger those orders, then reverse. 2. Retail traders enter too early The classic setup is: Resistance breaks → trader buys immediately → price reverses → stop loss gets hit. Institutions can use that new liquidity to fill positions in the opposite direction. 3. There is no real displacement A genuine market shift usually shows strong momentum—large-bodied candles, displacement and follow-through. If price barely pokes through the level and immediately returns, the breakout is questionable. 4. The breakout happens straight into an opposing POI For example: Bullish breakout → price runs directly into a 4H bearish Order Block → reversal. The breakout itself may be real, but there simply isn’t enough room for continuation. 5. The market is ranging This is a huge one. In a sideways market, price constantly moves above highs and below lows before returning to the range. That’s why taking every BOS as a trade can get you chopped up. 6. Traders confuse a wick with a structural break A wick above a high isn’t necessarily a meaningful break. You want to ask: Did price actually displace through the structure, or did it just take liquidity? The SMC way to look at it Instead of: “Resistance broke. BUY!” Think: “What liquidity did price just take, and what does price do after taking it?” A stronger setup can look like: Liquidity sweep → displacement → BOS/CHOCH → retracement into OB/FVG → entry For example: Previous High ↓ Price spikes above it ↓ Buy-side liquidity taken ↓ Strong bearish displacement ↓ Bearish BOS ↓ Retracement into bearish OB/FVG ↓ SELL That’s very different from simply buying the breakout. One rule I’d drill into a new SMC trader: Don’t trade the breakout. Trade the reaction to the breakout. The breakout tells you where liquidity was taken. The displacement and structure shift tell you whether the market actually wants to reverse or continue.#TradingwithJesus #forexeducation #liquidity #ICT #FVG

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Tuesday 06 October 2026 06:24:21 GMT