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Disciplined Trading

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Chapter 17 · Part Five

The AW Reversal checklist

All must be present. Print this one.

About 2 minutes

  • ERL has been taken, price swept external liquidity
  • Displacement or impulse after the sweep
  • Creation of an imbalance or FVG during displacement
  • ERL liquidity sitting on the opposite side, your target
  • Shift in price and neckline break confirmed. Non-negotiable
  • HTF bias aligns with trade direction
  • Structural stop identified beyond the swept wick, before entry
  • Size calculated so that stop equals fixed dollar risk
  • Entry to opposite ERL measured, and the reward justifies the risk

Bonus confluence

  • HTF FVG alignment
  • IFVG present at entry zone
  • FTSL or FTSH confirmed
  • Protected lows or highs at the sweep level
  • Multi-timeframe FVG alignment

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