TLR-001 Active Long + Short Version 1.0

Two-Stage Liquidity Reversal

Liquidity-based intraday setup.

By Hiron Pegu Published October 3, 2026

This page documents my own methodology for educational purposes. It is not a recommendation, and following every criterion does not make a trade more likely to succeed.

Strategy overview

The Two-Stage Liquidity Reversal (TLR) is the first strategy module I document on PropFlagger. It is an intraday framework built around liquidity: price first takes an obvious pool of liquidity, shows displacement and a change of character, then consolidates and builds a second pool of liquidity that is swept before the entry zone is considered.

This page documents the criteria I check. It describes my own methodology for educational purposes — it is not a recommendation to trade, and following every criterion does not make a trade more likely to work. Each journal entry records the checklist honestly, including trades that failed.

Why two stages?

The first liquidity grab and the change of character tell me that something has shifted. The second sweep, over relative equal highs or lows formed during the consolidation, gives me a clearly defined zone and an invalidation level for the trade I am studying.

Long logic

For a long, I look for sell-side liquidity to be identified and taken, followed by bullish displacement and a bullish change of character that I mark by hand on the annotated chart. Price then pulls back and consolidates; relative equal lows form and are swept by a downward manipulation. The demand zone formed around that sweep is where I consider the entry, with the stop-loss below the zone and a partial target at the previous higher high.

Short logic

The short side mirrors the long side: buy-side liquidity is identified and taken, bearish displacement and a bearish change of character follow, price consolidates and forms relative equal highs that are swept by an upward manipulation. I consider the entry at the resulting supply zone, with the stop-loss above the zone and a partial target at the previous lower low.

Criteria (version 1.0)

Each criterion has equal weight in Strategy Match. Strategy Match = criteria met ÷ total criteria × 100.

Long criteria (11)

Sellside liquidity identified Resting sell-side liquidity (for example equal lows or obvious swing lows) is marked before price reaches it.
Sellside liquidity taken Price trades through the marked sell-side liquidity.
Bullish displacement A strong, impulsive move up follows the liquidity grab.
Bullish CHoCH confirmed A bullish change of character is identified manually and marked on the annotated chart. The theme does not detect it automatically.
Pullback and consolidation Price retraces and consolidates after the displacement.
Relative equal lows Relative equal lows form during the consolidation, creating a second pool of liquidity.
Downward manipulation and liquidity sweep Price sweeps below the relative equal lows (the second stage of the reversal).
Demand zone identified A demand zone is marked with a zone high and zone low.
Long entry at demand zone The entry is taken inside the marked demand zone.
Stop-loss below demand zone The stop-loss is placed below the demand zone.
Partial take-profit at previous higher high A partial target is set at the previous higher high.

Short criteria (11)

Buyside liquidity identified Resting buy-side liquidity (for example equal highs or obvious swing highs) is marked before price reaches it.
Buyside liquidity taken Price trades through the marked buy-side liquidity.
Bearish displacement A strong, impulsive move down follows the liquidity grab.
Bearish CHoCH confirmed A bearish change of character is identified manually and marked on the annotated chart. The theme does not detect it automatically.
Pullback and consolidation Price retraces and consolidates after the displacement.
Relative equal highs Relative equal highs form during the consolidation, creating a second pool of liquidity.
Upward manipulation and liquidity sweep Price sweeps above the relative equal highs (the second stage of the reversal).
Supply zone identified A supply zone is marked with a zone high and zone low.
Short entry at supply zone The entry is taken inside the marked supply zone.
Stop-loss above supply zone The stop-loss is placed above the supply zone.
Partial take-profit at previous lower low A partial target is set at the previous lower low.

Historical journal statistics

Total trades 1

Success 1

Fail 0

Breakeven 0

Open 0

Win rate 100.00%

Average R —

Total R —

Average Strategy Match 0.00%

Profit factor —

Cumulative R

No closed trades with an R multiple yet.

Strategy Match distribution

Trade result distribution

Strategy adherence analysis

A purely historical grouping of recorded trades by Strategy Match. Small groups are not statistically meaningful.

Strategy Match	Trades	Success	Win rate	Average R
100%	0	0	—	—
90–99%	0	0	—	—
80–89%	0	0	—	—
70–79%	0	0	—	—
Below 70%	1	1	100.00%	—

Historical journal statistics are recorded results from my own trades. They are not a forecast, a guarantee, or an indication of what you should expect. Strategy Match shows how many documented criteria were present — it does not indicate the probability of success.

Win rate = success ÷ (success + fail). Open and breakeven trades are excluded. Average R and Total R use closed trades with a recorded R multiple.

All public journal entries for this strategy →

Author commentary

Every criterion currently carries equal weight in Strategy Match. That is a simplification: it counts how many documented conditions were present, it does not say which ones matter most, and it says nothing about the probability of success.

Version history

Journal trades stay linked to the version they were logged with, so older entries keep their original criteria.

1.0 — 2026-10-03 — Initial version (11 criteria per direction).