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===== 🔹 Strategy 3: Liquidity Sweep Reversal =====
  * **Setup**: Price makes a wick above previous high (or below low), then closes back inside
  * **Trigger**: Failed breakout (stop run)
  * **Entry**: Enter on engulfing candle or OB confirmation
  * **Stop Loss**: Wick high/low
  * **Take Profit**: Mean reversion to VWAP or OB zone
{{ :liquiditysweep.jpg?400 |}}

=== 🧪 LSR Quick Checklist ===
  * Wick above/below previous swing
  * Engulfing candle or reversal pattern
  * High volume on sweep, fade into reversal
  * Price reclaims range or OB zone
===== 🔄 What is a Liquidity Sweep Reversal? =====

A **Liquidity Sweep Reversal** occurs when **smart money** (large players) intentionally triggers stop orders near recent highs or lows to:

  * Trap retail traders  
  * Fill large positions  
  * Reverse the price direction shortly after

==== 🧠 What It Tells You ====
  * The initial breakout is **fake** – it’s a **liquidity grab**
  * Price **wicks above a recent high** (or below a low), but **fails to hold**
  * The real move happens **in the opposite direction**

==== 📉 How to Spot It ====
  * Price makes a **wick above a previous high** or **below a low**
  * Closes back **inside the range** (false breakout)
  * Watch for a **reversal candle** (engulfing or OB confirmation)
  * Volume often **spikes during the sweep**, then **fades into the reversal**

==== ✅ Why It’s Powerful ====
  * Reveals **manipulation and intent**
  * Ideal for **countertrend trades** or early **trend reversals**
  * Helps you **avoid getting trapped** in false breakouts

=== 🚫 Liquidity Sweep (No Pullback) ===

**Example:**
  * **Price spikes above the previous day’s high with a long upper wick**, trapping breakout traders. 
  * **It then drops immediately, closing back inside the range on heavy sell volume**.  

  * **Trade Entry:** Short on the first bearish engulfing candle after the wick.  
  * **Stop Loss:** Above the sweep wick.  
  * **Target:** Mid-range or VWAP.  


**Why it worked:** Classic stop run followed by a fast reversal—no pullback needed.


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