Liquidity sweepIntermediate
Price trades beyond a high or low, triggers the stops there, and closes back inside.
What it means
A sweep is also called a stop hunt or liquidity grab. It is the first step of many reversal models: sweep, structure shift, then entry on a gap or order block.
The difference from a breakout is the close: a breakout closes beyond the level and continues; a sweep closes back inside.
How to spot it
- A wick through an obvious high or low.
- A close back on the original side of the level.
Common mistakes
- Entering on the sweep itself without waiting for confirmation.
- Calling every breakout that later fails a sweep, in hindsight.
How WickCheck tests it
Buy when price sweeps the 20-bar low and closes back above it. Sell when price sweeps the 20-bar high and closes back below it. Stop at 1x ATR. Target 2R.
Open these rules in WickCheck, change any word and run them in seconds. No code.
Full results on 5 markets: Liquidity sweep backtest.
What it looks like on a real chart
Picked automatically from the backtest on real data: the latest winner and the latest loser. The numbered circles are the steps of the rules, in order. Losers are part of every strategy.
Related terms
What a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.