💧 What Is a Liquidity Sweep?
A liquidity sweep happens when price intentionally moves into obvious highs or lows to trigger stop-losses, liquidations, and pending orders — only to reverse soon after.
In simple terms:
the market takes liquidity first, then shows direction.
🧠 Why Liquidity Sweeps Happen
Markets need liquidity to move size.
Smart money targets areas where retail traders place stops:
Above equal highs
Below equal lows
Around clear support and resistance
Those zones act like liquidity pools.
🔍 How a Liquidity Sweep Looks
A fast spike above highs or below lows
Sudden volume increase
Breakout traders get trapped
Price quickly returns back into range
This is often called a fake breakout.
⚠️ Common Mistake
Retail chases the breakout.
Smart money waits for the sweep.
A sweep doesn’t mean instant reversal —
but it warns that liquidity has been collected.
🎯 Bottom Line
Liquidity sweeps reveal where the market hunts orders.
Price doesn’t move randomly.
It moves to where the liquidity is.
Learn to spot the sweep —
before committing to direction.
