Liquidity sweeps (stop hunts)
Price often runs beyond obvious highs and lows to trigger stops, then reverses.
What it is
Stop-loss orders cluster just above obvious highs and just below obvious lows (equal highs and lows, previous day high/low). Large participants need that liquidity to fill big orders. Price therefore often sweeps a level: it pokes through, triggers the stops, then closes back inside.
The sweep wick is a footprint. A sweep followed by a reclaim of the level and confirming flow is a high-quality reversal setup with a natural stop beyond the wick.
How to use it
- Mark equal highs/lows and previous day/session highs and lows.
- Wait for price to trade through the level.
- Require a close back inside plus confirmation (structure shift or flow).
- Stop beyond the sweep extreme; target the opposite side of the range.
Common mistakes
- Assuming every break is a sweep: a close and hold beyond the level is a breakout.
- Entering during the wick instead of after the reclaim.
- Using the wick as your stop distance without checking the size.
Practise it in TradeDesk X
The Flow layers on the TradeDesk X chart draw Sweep markers with a direction arrow. Micro’s flagship setup is “sweep + reclaim with whale absorption”.
Related lessons
Pin bar (hammer and shooting star)
A long wick shows price was pushed away and rejected. It is a rejection signal at a level.
♟Playbook: micro scalping (sweep, reclaim, flow)
Very short trades around liquidity sweeps, confirmed by real order flow.