Liquidity

What is a liquidity sweep?

Why price spikes past the obvious level, grabs stops, then reverses without you.

The mechanic

Big players need to fill big orders and they cannot do it without someone taking the other side. That liquidity sits where retail stops cluster: just past the obvious swing high or low. Price gets driven into that pocket, the stops trigger, and those orders fill the institutional position.

The fingerprint

A sweep leaves a tell. A sharp wick past a clear level followed by an immediate reversal, usually with a strong body close back inside. The level did not fail. It was tapped to collect stops, then abandoned.

How to use it

Stop entering the instant price touches a level, and stop placing your stop where everyone else does. Wait for the sweep and the reclaim: enter after price grabs the liquidity and closes back through the level, with your stop beyond the wick rather than at the round number the crowd uses.

What your smooth brain needs to remember

If your stop keeps getting tagged right before the move, you are not unlucky. You are the liquidity.

Grade a setup

Score any setup by confluence before you enter.

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