GLOSSARY · MARKET STRUCTURE
What is liquidity sweep?
A liquidity sweep is a fast move through an obvious high or low that triggers resting stop orders, followed by an immediate reversal back through the level.
Also called: Stop hunt · Stop run
What it means
Stops cluster where they are easy to reason about: just beyond the recent high, just beyond the recent low, just past the round number. That clustering makes those levels the cheapest place for size to be filled, so price is drawn to them.
Why it matters
The identifying signature is speed plus rejection. A genuine break tends to consolidate above the level; a sweep spikes through, leaves a long wick, and closes back inside. The wick is the visible trace of orders being filled and immediately absorbed.
What this changes in practice
Two of our four live strategies key on this structure — LIQUIDITY-WICK trades the rejection wick itself, and SMC-OB uses the zone the move originated from. Both are deliberately low-frequency: they wait for a specific structure rather than manufacturing a setup, which is why they trade far less often than an indicator-based system.
Related terms
- LiquidityLiquidity is the presence of resting orders available to be traded against, determining how easi…
- False breakoutA false breakout is a move through a level that immediately reverses back inside the prior range…
- Order blockAn order block is the candle or zone from which a strong directional move originated, treated as…
- Swing pointA swing point is a local high or low with a defined number of lower highs or higher lows on each…
Educational information only, not financial advice. Trading leveraged products carries substantial risk of loss. Last updated 2026-08-11.