What Is a Liquidity Sweep?

A liquidity sweep generally describes price moving through an area where orders may be concentrated, such as a previous high or low.

Traders often watch these areas because stops and breakout orders can contribute to activity when price reaches them.

But not every move beyond a previous high is a deliberate stop hunt.

I watch what happens after the level is breached. Does price continue and hold beyond it, or quickly return to the previous range?

The reaction helps me assess whether the move is gaining acceptance or failing.