Glossary
Liquidity Sweep
A sharp push past a high or low that triggers resting stops before price reverses — also called a stop hunt.
Liquidity Sweep, explained
A liquidity sweep is a deliberate move beyond an obvious high or low that triggers the stop-loss and breakout orders resting there, then reverses. It is how large participants fill big positions: they need the opposing orders that sit just past those levels.
The tell is the reaction. A genuine breakout holds and continues; a sweep spikes through, fails to follow through, and snaps back — often leaving a long wick and a quick shift in structure. The speed of the rejection is usually the clearest clue that the move was about collecting orders, not starting a trend.
Sweeps come in recognisable shapes. A run on equal highs or lows, a quick poke beyond the previous day's high, or a wick through a session extreme are all common. The deeper logic is the same each time: take the liquidity, then move in the opposite direction now that the fuel has been collected.
Sweeps are a core entry trigger in SMC. A sweep of liquidity followed by a change of character and a return to an order block is one of the cleaner, repeatable sequences on the chart — the sweep grabs the orders, the CHoCH confirms the turn, and the order block offers the entry.
On the desk we wait for the sweep rather than trying to predict the exact high or low. Letting price take the obvious liquidity first means we enter after the trap has sprung, on the side the larger flow has just committed to, instead of becoming the liquidity ourselves.
Frequently asked questions
- What is the difference between a liquidity sweep and a breakout?
- A breakout holds beyond the level and continues; a sweep pokes through, fails to follow through, and quickly reverses — usually leaving a long wick. The failure to continue is what distinguishes a sweep from a real breakout.
- Is a liquidity sweep the same as a stop hunt?
- Yes — they describe the same event from different angles. Price runs past an obvious level to trigger the stops (the liquidity) resting there, then reverses now that those orders have been collected.
Related terms
Liquidity
The pools of resting orders price is drawn toward — typically clustered above highs and below lows.
ReadChange of Character (CHoCH)
The first structural break against the prevailing trend — an early signal that momentum may be shifting.
ReadOrder Block
The last opposing candle before a strong, displaced move — a zone where institutions absorbed flow.
ReadSmart Money
The large, well-informed participants — banks and institutions — whose order flow drives the market.
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