Collectible card · Epic
Liquidity sweep
A wick that pokes beyond a liquidity level and closes back inside: the stops were taken, but price did not accept the new level.
Why it works
Once the stops are filled, the fuel is gone. A sweep followed by a reversal is one of the cleanest footprints of smart money.
How to use it
After a sweep of the lows, look for buys (ideally with a CHoCH and a pullback). After a sweep of the highs, look for sells.
The typical mistake
Selling the breakdown below equal lows, exactly when the sweep happens.
FAQ
What is Sweep in trading?
A wick that pokes beyond a liquidity level and closes back inside: the stops were taken, but price did not accept the new level.
How do you trade Sweep?
After a sweep of the lows, look for buys (ideally with a CHoCH and a pullback). After a sweep of the highs, look for sells.