Liquidity sweep — Trading Glossary

sweep

breakdown

Price trading just beyond an obvious high or low to trigger the stops there, then closing back inside — a wick through the level, not a close.

The close is what separates a sweep from a breakdown. Trading below a low and closing back above it shows the stops were taken and buyers returned; closing below and staying there is simply a break.

Also called: stop hunt, liquidity grab, stop run.

Taught in

Liquidity: Why Price Takes Your Stop FirstStrategy Playbook

Where stop losses pile up, why price is drawn to them, and how to tell a sweep that reverses from a breakdown that keeps going.

Also covered in that lesson

LiquidityOn a chart, the pool of stop losses and pending orders resting just beyond obvious swing highs and lows — the orders price is often drawn to.InducementA minor high or low inside a pullback that tempts traders in early and is usually taken out on the way to the main liquidity pool.