Why a Liquidity Sweep Can Fail as a Strategy

Trading every liquidity sweep is not a complete strategy.

A common idea is to wait for price to move beyond a previous high or low and then trade the reversal.

The problem is that some sweeps reverse sharply, while others lead to continued directional movement.

If I sell every move above a previous high, I'll eventually encounter a breakout that keeps running.

A better approach is to define additional conditions.

Does price return below the level? Is there a change in market structure? Does the entry have a logical invalidation point? Has the setup demonstrated an edge after costs?

A recognizable chart pattern is only the starting point.

The quality of a trading strategy depends on its complete rules and evidence, not the attractiveness of individual examples.