Liquidity Sweep: All the Info You Ever Need to Conquer

Hi whats up guys, today lets try to do it in a bullet points instead of writing my stories.

• Liquidity is the reason price moves.
• Markets move toward areas where orders are stacked.
• Most orders sit above highs and below lows.
• That’s why price keeps attacking those areas again and again. 🧪 What a liquidity sweep really is
• A liquidity sweep is a move beyond a clear high or low.
• Its purpose is to trigger clustered stop losses.
• It is not personal and not about your stop.
• It is required so larger players can enter or exit positions. 🧪Why most traders get caught
• Traders enter at obvious levels inside ranges.
• They usually use tight stop loss
• These areas become liquidity pools.
• Price must visit them before a real move starts. 🧪Double tops and bottoms
• Repeated reactions are not strength.
• They are preparation.
• Every touch builds more resting stops.
• Triple tops and bottoms are even more attractive.
• Never enter before price runs into them. 🧪How I read market structure
• I don’t focus on patterns in isolation.
• I focus on where liquidity is being collected.
• Structure is simply the path price takes to grab orders.
• The real move usually starts after the sweep.

1️⃣ USDCHF Sweep and Long - CIOD confirmation click picture👇

2️⃣USDJPY Sweep andLong - CIOD confirmation- Click picture 👇

3️⃣AUDUSD Turtle Sweep and short - CIOD confirmation click picture👇

📌 Up Trend - Trade Stop Hunt (LQ Sweep) buy below the lows
– Highs are broken
– Lows are respected
– Liquidity below is being cleaned 📌 Down Trend - Trade Stop hunts (LQ Sweep) sell above the highs
– Lows are broken
– Highs are respected
– Liquidity above is being cleaned 🧪Stop hunts are not random
• Quick wicks at range extremes are intentional.
• Trendline breaks often appear before reversals.
• Breakout traders provide liquidity.
• The move after the stop hunt is what matters.

1️⃣ EURUSD Short Click picture below to see how price action formed 👇

2️⃣GBPUSD Short Click picture below to see how price action formed 👇

3️⃣USDCHF Long Click picture below to see how price action formed 👇

It's effective because it capitalizes on the retail traders classic mistakes- FOMO and trading break out of the highs and selling the lows. While market makers are doing the opposite (don't get me wrong, Im also retail trader and you are too) trading so called smart money concepts doesn't make us smart money traders.

🧪How I use stop hunts
• I never enter at the first touch of a level.
• I wait for price to go through it.
• Only after the sweep do I look for entries.
• This gives better timing and tighter risk.

📌Bearish Scenario - (LTF view) - price (yellow has structured movements and should be crating AMD profiles on the edge of the range. We need to drop to LTF to read the structure. 📌Bullish Scenario ITF view - Price should not have candle close below the range on the same timeframe otherwise setup is invalidated and new range created. 🧪Where liquidity sweeps matter most
• Range highs and lows
• Previous week high or low
• Clear swing extremes
• Higher-timeframe key levels
• Daily and weekly ranges 🧪CLS strategy connection
• Liquidity sweep is the foundation of my CLS approach.
• Fake breakouts create urgency and FOMO.
• Late buyers and sellers get trapped.
• I trade against that behavior.

🧠 Having mechanical system with backtested data is your EDGE.
💪 That is what makes you DISCIPLINED TRADER.

📌Bullish continuation setups
Model 1 - Entry after manipulation - 50% target
Model 2 - Entry on pullback on level between 61.8 - 80% pullback 📌Bearish Continuation setups
Model 1 - Entry after manipulation - 50% target
Model 2 - Entry on pullback on level between 61.8 - 80% pullback 🧪Manipulation phase
• No manipulation means no institutional move.
• Liquidity must be taken first.
• Big candles after sweeps signal readiness.
• That is where opportunity appears.

🧪Basic CLS workflow
• Define higher-timeframe trend
• Define the range near a key level
• Wait for price to sweep the high or low
• No candle close outside the range on that timeframe
• Enter only after manipulation

📌Bullish LTF Range within HTF Range
Analyze HTF range and define models, then drop it to your TF and trade your ranges with the HTF range. Always follow the same process only on the LTF - Lower timeframe. 📌BearishLTF Range within HTF Range
Analyze HTF range and define models, then drop it to your TF and trade your ranges with the HTF range. Always follow the same process only on the LTF - Lower timeframe. 🧪Why this approach fixes psychology
• Rules remove hesitation
• Backtesting builds confidence
• Losses become expected data points
• Overtrading naturally disappears

🧪Brief note on SMT
• Sometimes price moves without LQ sweep its because of SMT
• In other words Sweep has happen on correlated pair so it doesn't have to happen on the we are looking for.
• If it’s not at a key level, I ignore it.

📌 SMT EURUSD and GBPUSD Example
GU - just shallow manipulation but creates clean OB
EU - Deeper manipulation but OB created later.
🧪Final perspective
• Liquidity is sweep / Stop hunt / manipulation is happening ona key levels where mostly traders enters false break to the wrong side and those who has been right are now taken out.
📌 Example of manipulation
Less informed traders bought early and other group of Turtles selling the break out of the lows, they are wrong on the lows. Sellers were used as liqudity and buyers are now trapped in the long where price reverse against them.
I promised myself I’d become the person I once needed the most as a beginner. Below are links to a powerful lessons I shared on Tradingview. Hope it can help you avoid years of trial and error I went thru.

📊 Sharpen your trading Strategy
⚙️ 100% Mechanical System - Complete Strategy
🔁 Daily Bias – Continuation
🔄 Daily Bias – Reversal
🧱 Key Level – Order Block
📉 How to Buy Lows and Sell Highs
🎯 Dealing Range – Enter on pullbacks
💧 Liquidity – Basics to understand
🕒 Timeframe Alignments
🚫 Market Narratives – Avoid traps
🐢 Turtle Soup Master – High reward method
🧘 How to stop overcomplicating trading
🕰️ Day Trading Cheat Code – Sessions
🇬🇧 London Session Trading
🔍 SMT Divergence – Secret Smart Money signal
📐 Standard Deviations – Predict future targets
🎣 Stop Hunt Trading

🧠 Level Up your Mindset
🛕 Monk Mode – Transition from 9–5 to full-time trading
⚠️ Trading Enemies – Habits that destroy success
🔄 Trader’s Routine – Build discipline daily
💪Get Funded - $20 000 Monthly Plan

🛡️ Risk Management
🏦 Risk Management for Prop Trading
📏 Risk in % or Fixed Position Size
🔐 Risk Per Trade – Keep consistency

Adapt what is useful. Reject what is not. Add something of your own.

David Perk aka Dave FX Hunter