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Structural vs Reactionary Sweep

A low gets taken. Is it a break or a sweep? Structural sweeps target levels that broke other structural levels — they carry historical significance. Reactionary sweeps target levels that gave reactions while the other side was in control — they exist purely to generate fuel. Understanding which is happening prevents you from getting trapped.

Structural Sweep

HL broke HHOrders belowSWEEP
  • Below a low that broke a high (bullish)
  • Above a high that broke a low (bearish)
  • Dense cluster of stops from structural break
  • Predictable location — always tied to BOS points

Reactionary Sweep

SupplyReactionReactionary liq.SWEEP
  • Zone gives reaction while not in control
  • Reaction exists purely to generate orders
  • Initial reaction point must be broken for valid sweep
  • Traps counter-trend traders before continuation

When Both Combine: Double Liquidity

The highest-probability setups occur when structural and reactionary liquidity exist at the same point:

  1. A zone gives a reaction (creating reactionary liquidity)
  2. That reaction also breaks a structural level (creating structural liquidity)
  3. Both types of orders now cluster at the same level
  4. The market has double the reason to sweep that level

Double liquidity = significantly higher sweep probability

Side-by-Side Comparison

FeatureStructural SweepReactionary Sweep
DefinitionLiquidity at a level that broke another levelLiquidity from a zone reacting while not in control
Bullish exampleBelow a HL that broke a previous HHSupply reacting in a demand-controlled market
Bearish exampleAbove a LH that broke a previous LLDemand reacting in a supply-controlled market
Order typesStop losses from BOS entries, limit ordersCounter-trend entries, FOMO orders
PredictabilityHigh — always at BOS pivot pointsModerate — requires identifying control first
Confirmation neededWick below/above + reversalInitial reaction point must be broken

Frequently Asked Questions

How do I know if a level break is a sweep or a real BOS?

Use the hard close candle confirmation. If price breaks the level with only a wick (no close beyond), it's likely a sweep. If price closes beyond the level with a hard close candle, it's more likely a real BOS.

Can I trade the sweep itself?

Yes — after the sweep completes and order flow confirms the continuation direction (first level of respect holds, LPX fails), the entry after a sweep is one of the highest-probability setups available.

Why does supply give reactions in a bullish market?

To generate liquidity. The reaction entices short sellers into the market. Their stop losses above the reaction high become fuel for the next move up. The market needs these orders to power larger moves.

Related Topics

This content is educational and does not constitute financial advice. Past liquidity patterns do not guarantee future results. Always use proper risk management.

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