Liquidity Sweep — what it is and how to use it in trading
Definition
A liquidity sweep is a quick spike beyond a swing high or low with an almost immediate snap back inside the range. It is read as a "hunt" for the stop orders and pending orders clustered just beyond that level.
How it works in the builder
liquidity_sweep_high/liquidity_sweep_low are boolean operands with left/right parameters: price pierces the last confirmed swing level, but the bar's close snaps back inside the prior range — the break is never confirmed by a close, unlike a BOS.
What it looks like on the chart
On the chart it shows up as a long candle wick that pierces the previous high/low level, while the candle's body — and especially its close — stays on the other side of that level.
Typical use
Often used as a counter-trend entry signal right after the sweep: price grabbed liquidity above a high and reversed — a potential short entry, especially combined with a CHoCH down on the same or a following bar.
Common pitfalls
Not every long wick is an institutional-grade liquidity sweep — on illiquid instruments and short timeframes, plain noise produces similarly shaped candles with no real link to stop-order clusters. It works best as a filter or confirmation, not a standalone entry signal.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.
Liquidity Sweep High
Block variants
Liquidity Sweep Low