Liquidity Sweeps
Understand failed breakouts, stop runs, and reclaim behavior.
A liquidity sweep happens when price trades beyond an obvious high or low, triggers stops, and then fails to continue. The sweep itself is not the trade. The opportunity comes from the reaction after liquidity is taken.
A bullish sweep may run below lows, reject, and reclaim the broken level. A bearish sweep may run above highs, reject, and fall back below the level. The reclaim or failure gives information about whether the breakout was accepted or trapped.
Wait for evidence. Many breakouts continue after taking liquidity, so fading every new high or low is dangerous. A sweep setup is strongest when it occurs at a meaningful level, during relevant session timing, and with clear invalidation beyond the extreme.