💧 LIQUIDITY SWEEP: When Price Hunts Stop Losses
Before a strong move, price often takes liquidity from obvious highs or lows.
This is known as a Liquidity Sweep.
What is a Liquidity Sweep?
A Liquidity Sweep happens when price briefly moves above a previous high or below a previous low, triggering stop-loss orders and breakout entries, then rejects and moves back in the opposite direction.
🔹 Buy-Side Liquidity Sweep
Price moves above previous highs → takes liquidity → rejects → potential bearish move.
🔹 Sell-Side Liquidity Sweep
Price moves below previous lows → takes liquidity → rejects → potential bullish move.
Why does it matter?
✅ Helps identify potential reversals
✅ Shows where liquidity may be resting
✅ Can improve entry timing
✅ Works well with Market Structure, Order Blocks & FVG
Golden Rule
A liquidity sweep is NOT a trade signal by itself.
Wait for rejection + market structure confirmation before entering.
For educational purposes only. Not financial advice.
#Crypto #LiquiditySweep #SmartMoney #SMC
Before a strong move, price often takes liquidity from obvious highs or lows.
This is known as a Liquidity Sweep.
What is a Liquidity Sweep?
A Liquidity Sweep happens when price briefly moves above a previous high or below a previous low, triggering stop-loss orders and breakout entries, then rejects and moves back in the opposite direction.
🔹 Buy-Side Liquidity Sweep
Price moves above previous highs → takes liquidity → rejects → potential bearish move.
🔹 Sell-Side Liquidity Sweep
Price moves below previous lows → takes liquidity → rejects → potential bullish move.
Why does it matter?
✅ Helps identify potential reversals
✅ Shows where liquidity may be resting
✅ Can improve entry timing
✅ Works well with Market Structure, Order Blocks & FVG
Golden Rule
A liquidity sweep is NOT a trade signal by itself.
Wait for rejection + market structure confirmation before entering.
For educational purposes only. Not financial advice.
#Crypto #LiquiditySweep #SmartMoney #SMC