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 quickly reclaims the level is one of the long triggers liquidity-based traders watch for.
NQ example ILLUSTRATION
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 is a sell-side sweep, and a reversal from there is the setup traders look for.