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Liquidity Sweep

A quick push through an obvious high or low that triggers resting stops, immediately followed by a reversal back through the level.

What it is

Obvious swing highs and lows accumulate stop orders — longs' stops below lows, shorts' stops above highs. A liquidity sweep is when price wicks through such a level, fills those resting orders, and closes back on the original side. The level was 'swept' for its liquidity rather than broken with intent.

Why it matters

Sweeps mark the spots where large participants found the liquidity to fill positions. A swept low that instantly reclaims is one of the highest-probability long triggers in intraday futures trading.

NQ example REAL SCENARIO

NQ dips 8 points below yesterday's low at 9:47am, fills the stops sitting there, and closes the same 1-minute candle back above the level — that's a sell-side sweep, and the reversal that follows is the trade.

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Liquidity Sweep — Explained with NQ Examples · Digital Edge Lab