Skip to main content
Browse system docs

SBS: Swing Breakout Sequence

Read the breakout, first pullback, sweep and reversal inside the Range Model.

SBS stands for Swing Breakout Sequence. It describes a swing breakout, a first pullback, a further push, and a later sweep of that pullback. The confirmation-based SBS lesson then waits for a reversal before entry.

Start with the Range Model. Name the range and the boundary response you are studying. SBS can describe the smaller-chart sequence at that location. For a sequence in the middle of a larger box, mark the smaller range that explains the location.

Read the sequence

Point Bullish sequence Bearish sequence
1 Price breaks the selected swing high Price breaks the selected swing low
2 The first pullback forms a low The first pullback forms a high
3 Price pushes to a new high Price pushes to a new low
4 Price returns and sweeps below point 2 Price returns and sweeps above point 2
5 A bullish reversal develops after the sweep A bearish reversal develops after the sweep
6 Price returns toward the point-3 high Price returns toward the point-3 low

These points are stages, not six consecutive candles. The original lesson prefers a new extreme at point 3 but also discusses equal extremes. Its local point-1 break can be a wick; that does not make a wick sufficient to confirm a higher-timeframe structure change or a held Range Model breakout.

The point-2 sweep describes traded prices. It does not prove who placed orders or guarantee the reversal at point 5.

Entry and management

The confirmation-based lesson waits for point 5, often a reversal or double bottom/top, and illustrates a buy-stop for a long or sell-stop for a short. Entry still requires the point-5 reversal after the sweep, even if a chart marker has already identified point 4.

The lesson discusses stops beyond the reversal structure or the wider swing, and a return toward point 3 as a management reference. Choose the invalidation, order and size before entering. Keep that local reference separate from the parent range's two objectives: midpoint/opposite boundary for a sweep, or one/two range heights for a held break.

Where Golden SBS differs

Golden SBS uses a measured 0.618 pullback entry and a full exit at 0.236. Its resting entry can fill during point 4, before a point-5 reversal exists. Choose the approach before the event; the two entry rules describe different decisions.

Source lesson

Watch the SBS lesson. The sequence is explained around 21:02–24:49 and summarized around 54:12. The lesson is discretionary chart teaching, not a verified performance record or a complete automatic swing detector.

Use these docs for education, chart study, replay, and process review. Every setup can fail. You remain responsible for risk, size, orders, execution, and the decision to trade.