Your stop-loss gets hit. You close the chart. Then, a few minutes later, the price reverses and goes exactly where you predicted. Happened to you? You may have been caught in a liquidity sweep. Price briefly moves past a recent high or low, triggers clustered stop-loss and pending orders, and then reverses.
That's why experienced traders look beyond the breakout itself. They watch how quickly price moves back, what kind of candlestick forms, and where the nearest liquidity zones are
Our latest article explores how a liquidity sweep differs from a liquidity grab, where to look for these patterns, and how they are used in the Smart Money Concept.
