Liquidity Sweep
A move that briefly violates a swing high or low to trigger resting stop-loss orders, then sharply reverses, providing institutional traders with counterpa...
A move that briefly violates a swing high or low to trigger resting stop-loss orders, then sharply reverses, providing institutional traders with counterparty liquidity.
Also known as: Stop Hunt, Liquidity Grab, Liquidity Run
Full definition
A liquidity sweep (also called a stop hunt, liquidity grab, or liquidity run) occurs when price pushes through a swing high or low, triggers the cluster of stop-loss orders resting at that level, and then reverses sharply within 1–3 candles. The sweep is the institutional signature of position loading: large desks need counterparty liquidity to fill their size, and resting stops at obvious technical levels are the most predictable place to find it.
There are three types of liquidity sweeps that SMC traders monitor. Equal-highs/lows sweeps target clusters of stops above two or more swing highs (or below two or more swing lows) where retail traders concentrate stop orders. Session-high/low sweeps target the high or low of the prior trading session (Asian range high swept during London, London high swept during New York). Major-level sweeps target round numbers (1.1000 on EURUSD, 2000 on gold, 50,000 on Bitcoin) where psychological stops accumulate.
The textbook setup is: liquidity sweep + Change of Character. After price sweeps a clear liquidity pool, drop to a lower timeframe and wait for CHoCH in the opposite direction. Enter at the order block or FVG that produced the CHoCH, with a stop-loss 1–3 ATR beyond the swept liquidity. This sweep-then-CHoCH pattern is the highest-probability entry model in SMC and consistently produces win rates above 60% across major instruments.
Not every wick is a liquidity sweep. A meaningful sweep requires (a) a clear, multi-touch liquidity level, (b) a break with a wick that immediately reverses, and (c) a return inside the prior range within 1–3 candles. Random single-wick spikes through unimportant levels are noise.
Frequently asked questions
What is the difference between a liquidity sweep and a stop hunt?
These are the same event with different names. ICT and SMC literature uses 'liquidity sweep' or 'liquidity run' more often. Older retail trading material uses 'stop hunt'. The mechanics are identical: institutional flow targeting resting stop orders to fill size.
How do I identify which highs and lows have liquidity?
Equal highs and equal lows (two or more swing points at the same price) carry the most liquidity. Session highs/lows and major round numbers also concentrate stops. Single-touch swing points carry less liquidity than multi-touch clusters.
Should I trade the sweep itself or wait for the reversal?
Trading the sweep itself (entering as price reverses from the wick) is high-probability but technically demanding. Most traders wait for confirmation: a sweep followed by a Change of Character on the lower timeframe. The CHoCH confirms institutional reversal and provides a clear point of interest for entry.
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