LiquidityIntermediate

Liquidity Sweep, Stop Hunt and Liquidity Run

The difference between a liquidity sweep (grab, stop hunt) and a liquidity run: wick and reclaim versus close and continuation, with objective rules and examples.

Library categories

What it means

A liquidity sweep (also called a liquidity grab or stop hunt) is a quick trade beyond an obvious high or low that closes back inside within a few candles. A liquidity run (or raid) is a move beyond the level that closes there and continues.

Both start the same way. Only the following closes tell them apart.

Why traders use it

A sweep suggests the orders beyond the level were used to fill positions in the other direction. A run suggests the market genuinely wanted to go there.

"Stop hunt" describes the effect, not proof of intent: the chart shows that stops were likely triggered, not who triggered them.

Chart examples

Sweep: wick beyond, close back inside

SweepReclaimEqual lows
Price trades below the lows, then closes back above them and moves away: a sweep.

Run: close beyond and continue

RunNo reclaim closeEqual lows
Price closes below the lows and keeps closing there: the liquidity was run, not swept.Schematic diagrams drawn to explain the idea; they are not market data.

How to identify it objectively

  • 1Mark the level (swing low, equal lows, PDL, session low).
  • 2Price trades beyond it.
  • 3Sweep: a candle closes back inside within a set window (for example 3 candles).
  • 4Run: closes stay beyond the level for that window.
  • 5Add displacement in the new direction to confirm a sweep.

Bullish use

  • 1Sweep below a low, close back above.
  • 2Bullish displacement follows.
  • 3Target the opposite liquidity above.

Bearish use

  • 1Sweep above a high, close back below.
  • 2Bearish displacement follows.
  • 3Target the liquidity below.

What confirms it

  • Reclaim close inside the window.
  • Displacement away from the level.
  • Higher-timeframe bias agrees.

What invalidates it

  • Closes hold beyond the level: it is a run.
  • Price closes beyond the sweep extreme after the reclaim.

How a hypothetical setup is built

Entry

After the reclaim and a displacement candle, enter on its close or on a retracement into the gap it leaves.

Stop

Beyond the sweep extreme plus a small buffer.

Target

The nearest opposite liquidity pool.

A hypothetical illustration of how the concept is turned into a plan, not a recommendation. Practise it on a paper account first.

Historical testing

The Session Liquidity Playbook documents a sweep rule with real gold examples, including one that hit its stop. No win rate is published because no full backtest has been run.

Limitations: when it fails

  • Many sweeps turn into runs a few candles later.
  • Wick length alone means little.
  • Intent cannot be read from candles.
  • News spikes create sweeps that do not follow the usual pattern.

Knowledge check

Pick an answer to see the explanation. Nothing is saved.

Price trades below a low and closes back above within two candles. What is it?

1. Price trades below a low and closes back above within two candles. What is it?

What distinguishes a run from a sweep?

2. What distinguishes a run from a sweep?

Does the chart prove who hunted the stops?

3. Does the chart prove who hunted the stops?

Practise it risk-free

Open the free chart, use replay to go back in time and look for this concept candle by candle with $20,000 in virtual money.