Liquidity

Liquidity sweeps

Grab and reject

A sweep (or stop hunt) is when price pushes just past a high or low, triggers the stops resting there, then quickly closes back inside. The wick grabs the liquidity; the close back inside shows rejection.

Sweep vs breakout

Compare that with a real breakout: price closes beyond the level and keeps going. The difference is the close.

Test yourself

What happened at the lows on this chart?

Sell-side liquidity was swept, then price rejected higherA wick took out the equal lows and the candle closed back above them.

What confirms a sweep rather than a breakout?

The candle closes back inside the levelRejection, shown by the close back inside, is what makes it a sweep.

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