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
Run: close beyond and continue
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.
Related concepts
- LiquidityEqual Highs and Equal Lows (EQH / EQL)
- Market StructureMarket Structure Shift (MSS)
- LiquidityInducement (IDM)
- Full guide on The TradeskillLiquidity Sweep vs. Accepted Breakout
- Full guide on The TradeskillLiquidity Sweep + FVG Strategy
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
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