LEARN TO RECOGNISE A LIQUIDITY SWEEP

A liquidity sweep occurs when price moves beyond a significant high or low where traders may have placed stops or breakout orders.

For example, NAS100 may trade above equal highs and then quickly move back below them. That could indicate a failed breakout, but it isn't enough by itself to justify a short position.

Look for additional evidence, such as displacement, a market structure shift, and a suitable entry location.

Never confuse the sweep with the confirmation.

The sweep gives you an event to study. Your model determines whether a trade is justified.