Core Concepts
Liquidity Sweep
When price triggers a cluster of resting orders at a level, creating a surge of volume
A liquidity sweep occurs when price moves to a level where orders are clustered (stops, limits, market orders), triggering those orders and creating a surge of trading volume. This volume fuels the next directional market move. There are two types: structural sweeps (targeting levels that broke other levels) and reactionary sweeps (targeting levels that gave reactions while not in control). A sweep is not a break — sweeps take orders and reverse, breaks take orders and continue.
✓How to Recognize
- •Price wicks past a key level then reverses
- •Structural sweep: below a low that broke a high, or above a high that broke a low
- •Reactionary sweep: reaction point from a zone not in control gets broken
- •Volume spike at the sweep level confirms order triggering
⚡How to Avoid
- →Confusing a sweep with a genuine break of structure
- →Entering on the break side of a sweep without confirmation
- →Ignoring sweep probability when stops cluster at obvious levels
- →Trading counter to the sweep direction before order flow confirms