A Liquidity Sweep is a quick push beyond an obvious high or low — where stop orders cluster — that reverses shortly after. Large players use it to fill orders against the trapped traders' stops.
How traders use it
- Look for a fast wick beyond a level that snaps back.
- It traps breakout traders on the wrong side.
- A sweep before a reversal is a high-probability signal.
See it in dtcharts
Mark order blocks, gaps and liquidity on the chart in the dtcharts terminal with the drawing tools and Smart Money module.