A liquidity sweep is when price pushes beyond a key level, triggers the resting orders there, and then quickly reverses. Instead of a clean breakout, the level is taken and rejected — a sign that the move beyond it was about grabbing liquidity rather than genuine continuation.
How to spot a sweep
The classic footprint is a long wick that pierces a high or low and closes back inside the range. It often happens fast and on a spike in activity. A genuine sweep is usually followed by a shift in structure in the opposite direction, which is your confirmation.
Entry and stop logic
A common approach is to wait for the sweep, then for a CHoCH or MSS confirming the reversal, and enter on the pullback. The stop sits just beyond the sweep's extreme — the wick high or low — because a return there means the reversal read was wrong. Target the opposite liquidity pool.
- Sweep = price takes orders beyond a level then reverses, often with a long wick.
- Wait for a structure shift back the other way before entering.
- Stop goes just past the sweep extreme; target the opposite liquidity.
- Not every wick is a real sweep — some are genuine breakouts, so confirmation matters.
A liquidity sweep grabs orders beyond a level then reverses — trade the reversal with your stop just past the wick.