Liquidity Sweep Reversal Strategy (LSR)

The strategy

The LSR in plain words.

What it is

A failed breakout system, built on what traders call a liquidity sweep. Price pushes through yesterday's high or low, or the overnight high or low, then closes back inside.

What it does

It trades against the failed break, back toward VWAP, the session's average price weighted by volume.

How it works

You mark the prior day's and the overnight highs and lows as levels on a 30-minute chart, then wait for price to trade past one and for a 5-minute candle to close back inside it within three candles. The push must come on weak volume, under 1.5 times normal for that time of day, and VWAP must sit far enough away to pay at least 1.5 times the risk. You enter at that candle's close or on a retest of the level, set your stop one tick past the failed push, and target VWAP. A close back at or beyond the level ends the trade early. No new trades after 12:00 ET.

What gets graded

The rules the reps grade.

The LSR is written down rule by rule, so every rep can be scored against it.

The call. Trade against the failed break, or stand aside: when a filter fails, the push runs too deep, the close back inside comes too late, the level was already swept, the trade cap is reached, or a high-impact report is due inside the window. Skip every FOMC day too, the days the Federal Reserve announces its rate decision.
The bias. State it before the order goes in: long after a swept low, short after a swept high.
The signal. Price trades at least one tick, the smallest price step, past one of four levels, yesterday's high or low or the overnight high or low. Then a 5-minute candle closes back inside within three candles, and the order goes in after that close.
Volume. The push comes on weak volume: relative volume under 1.5 on the sweep candle, meaning less than one and a half times normal for that time of day.
Room. VWAP sits at least 1.5 times the risk away from a retest of the level.
The entry. A limit at the reclaim close or at the retest of the level. Never chased.
The stop. One tick past the farthest point of the push.
The target. VWAP as it stood at the reclaim close, paying at least 1.5 times the risk.
The early exit. Any 5-minute close back at or beyond the level while the trade is open ends it.
The clock. No new orders from 12:00 ET.
The journal. Every rep logged, with how you felt when you took it.

Every rep is graded on whether you followed these rules, never on the money.

Forge III and Forge IV

Learn it in LSR Hammer. Prove it in LSR Anvil.

LSR Hammer

LSR Hammer teaches the LSR one rule at a time, then the gate.

Why Breakouts Fail
Marking the Levels
The Sweep and the Reclaim: A Close, Not a Wick
Volume on the Sweep
Room to VWAP
The Entry: Reclaim Close, Retest or Chase
The Plan: Stop Past the Sweep, Target VWAP, the Early Exit
Standing Aside

The gate, in one sitting: six correct calls in the trainer, your written plan, and a short knowledge check. Pass all three and the LSR HAMMER badge is yours.

LSR Anvil

LSR Anvil is where you run it: simulated MNQ sessions played one candle at a time, every rep scored on the LSR's rules and never on the outcome, then journaled.

Fourteen scored practice sessions. Reclaims that come too slowly, pushes too deep or on heavy volume, mornings with no room to VWAP, breaks that resume after you are in, and trades that go your way for the wrong reason and score lower for it. Every one graded on whether you followed your own rules, never on the money.

The LSR ANVIL badge takes twenty scored reps across seven different scenarios, with your best twenty averaging 85 percent rule adherence.

What you need

Build the LSR layout.

Save a TradingView layout with two charts side by side, a 30-minute chart for the levels and a 5-minute chart for the trade, both on extended trading hours. Add three built-in indicators to the 5-minute chart: VWAP, Volume and Relative Volume at Time. The free plan holds 1 chart per layout, caps each chart at 2 indicators and saves 1 layout, so TradingView Essential, with 2 charts per layout and 5 indicators per chart, is the minimum tier for the LSR.

Steady Edge Trading routes new members to a $15 TradingView credit, which covers your first month of Essential.

Start free with a $15 credit through SET

Free

Play one LSR rep before you pay for anything.

Foundations and a first scored rep are free, with no card required. Once you are in, every strategy on the shelf has a free rep to try before you choose.

Start The Forge free

Included in The Forge

One subscription. Every strategy.

The LSR is included in the paid Forge, with every other strategy The Forge teaches. Each one walks the same path.

Same six stages, a different strategy. Spark, Heat, Grind and Edge are shared, and what they build carries to every strategy. Each strategy’s own rules live in its Hammer and Anvil.

Start here

Foundations

Free, no card. Candles, liquidity, order types, indicators and level placement.

Forge I

Spark

The real odds, informed commitment, and getting your account and charts set up properly.

Forge II

Heat

Instruments, contract mechanics, chart reading, order types, and the risk math behind every position.

Forge III

LSR Hammer

The LSR, taught rule by rule, and the plan you write down.

Forge IV

LSR Anvil

Graded LSR reps, scored on the rules, never the money.

Forge V

Grind

Why markets move, trading around scheduled events, scaling, and the live layer.

Forge VI

Edge

Synthesis, your own record held up to you, and the real capital decision.

The training

The Forge

$79/mo

Or $199 a quarter. Cancel anytime.

All six stages of every strategy on the shelf
Every graded rep scenario in the simulator
Adherence Insights, your full record
SET Discord access included, a $29 a month value

Start free

Or unlock every strategy now ›

Subscription, cancel anytime. Payments are not refunded and partial periods are not prorated. Read the Refund and Billing Policy before you buy.

The Forge builds the execution. Live Edge is the live read of the market, on the days JT posts, and it covers every strategy in The Forge. $99 a month. Join Live Edge ›

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See how it works →

Questions

The questions people actually ask.

What is a liquidity sweep?

Orders gather just past obvious prices such as yesterday's high and low and the overnight high and low. Some are stop orders, the automatic exits of traders positioned the other way. A liquidity sweep is a push through one of those levels that runs those orders and then fails: a 5-minute candle closes back inside. The Liquidity Sweep Reversal trades that failure back toward VWAP, the session's average price weighted by volume, when the push came on weak volume and VWAP sits far enough away to pay at least 1.5 times the risk.

Which markets does the LSR work on?

The rules work on any liquid index future the four levels can be drawn on. The reps use MNQ, the Micro E-mini Nasdaq-100: one point is worth $2 per contract, and a tick, a quarter point, is worth $0.50. How many contracts you trade is set by your account and your risk, never by the LSR.

Is the LSR included in The Forge?

Yes. Every strategy The Forge teaches is included in the paid Forge: $79 a month, or $199 a quarter. Foundations and a first scored rep are free, with no card required.

Can I learn more than one strategy?

Yes, and every one is in the same subscription. Same six stages, a different strategy. Spark, Heat, Grind and Edge are shared, and what they build carries to every strategy. Each strategy’s own rules live in its Hammer and Anvil.

Read every question ›