Liquidity Purge Order Block ReversalE-mini Nasdaq-100 FuturesCME_MINI:NQ1!iSxckleThis setup is based on the concept that price often seeks liquidity before making its intended move. Rather than selling immediately into resistance, the objective is to wait for price to first sweep a significant liquidity level, then look for confirmation of rejection before entering. The first blue horizontal ray marks the low that formed immediately before the aggressive sell-off (purge). This level represents a key liquidity reference. As price later revisits this area, it briefly trades above the level, triggering buy-side liquidity and potentially trapping breakout traders. Following the liquidity sweep, a bearish order block forms, signalling that sellers have regained control after the stop hunt. The short position is executed from this order block rather than directly from the liquidity level, providing confirmation that the sweep has been accepted and rejected. Entry Rules Identify the low immediately before the major bearish purge. Extend this level using a horizontal ray. Wait for price to trade above (sweep) the level. Allow a bearish order block to form after the sweep. Enter short from the order block on confirmation. Risk Management Stop Loss: Placed just above the previous swing high created during the liquidity sweep. Take Profit: Previous swing lows. Risk-to-Reward: Approximately 1:11, allowing small predefined risk while targeting the larger move back into liquidity below. Trade Logic The idea behind this setup is that institutions often push price beyond obvious levels to collect resting liquidity before reversing direction. The liquidity grab above the marked level creates the conditions for a bearish displacement, with the newly formed order block acting as the entry zone. By placing the stop above the sweep high, the trade invalidation is clear and logical, while targeting previous lows aligns with the expectation that price will rebalance back toward existing downside liquidity. This approach prioritises patience, confirmation, and asymmetric risk, avoiding premature entries and instead waiting for price to reveal its intention after the liquidity event.