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Table of Contents
πΉ 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
π 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
π§ What It Tells You
- The initial breakout is fake β itβs 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
π 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
β Why Itβs Powerful
- Reveals manipulation and intent
- Ideal for countertrend trades or early trend reversals
- Helps you avoid getting trapped in false breakouts
lsr.1743916115.txt.gz Β· Last modified: 2025/04/06 05:08 by lwattsii