Where does the daily sweep enter, stop out, and take profit?

After the 1-hour swing failure confirms, drop to a lower timeframe for the entry: 15-minute, 5-minute, or 1-minute. Kyle looks for displacement, usually a fair value gap, and prefers to enter as price trades away from the level and rejects it rather than as it trades into it.

The stop loss goes at the invalidation point: beyond the low of the failure, the place where the sweep idea is provably wrong. Too tight inside the structure and the market stops you out before the move; if your idea eventually panned out but your stop was hit, the idea was right and the placement was wrong. That distinction is what you study in review.

The target is the nearest pool on the other side: the most recent untraded swing high, or the previous daily high or low. Nothing exotic. The trade is over when the opposing pool gets tapped or the invalidation is hit, and if the invalidation is hit, the day is over too.

Sources: The Daily Sweep strategy · My Updated Trading Strategy (2026)