GLOSSARY · MARKET STRUCTURE

What is Liquidity Sweep?

A liquidity sweep is a quick push through a key high or low that triggers stops, then reverses.

Price briefly breaks an obvious level, triggers the stop orders resting there, and snaps back inside. The sweep traps breakout traders and often marks a short-term reversal.

Traders look for a candle that wicks through the level but closes back inside it.

EXAMPLE

NQ dips 8 points below the overnight low at 9:42, then closes the 5-minute candle back above it. Shorts who sold the break are trapped — a sweep long.

LEARN IT PROPERLY — FREE

Module 4: The 29-Setup Library →

Related terms

TRADEDISCIPLE UNIVERSITY · FREE

Get new lessons by email

New lessons, setup breakdowns and the weekly futures game plan. Free, no credit card.

No spam. Unsubscribe anytime.