Sweep and reclaim
A bullish sweep starts when price trades below a marked low such as the Asia low or PDL. It becomes a reclaim when a candle closes back above that level within a set number of candles (three by default). It becomes a confirmed sweep only when a bullish displacement candle or a bullish lower-timeframe structure break follows. A bearish sweep is the exact mirror image at a marked high.
A wick beyond a level by itself is only a possible sweep. Many levels get wicked and then broken properly a few candles later.
Sweep and reclaim versus accepted breakout
Accepted breakout
A breakout is potentially accepted when a candle closes beyond the level (not just wicks through it), the close shows real displacement compared with recent volatility, and price then holds beyond the level for the acceptance window or retests it and rejects back in the breakout direction. The playbook measures displacement as candle body against ATR; the default threshold is a body of at least 1× ATR(14).
- Close beyond the level, not a wick.
- Body large compared with ATR.
- Following closes stay beyond the level, or a retest holds.
- 4H bias does not strongly conflict, unless countertrend mode is on.
- Enough room to the next target.
A bullish sweep of the Asia low
Same start, different outcome
Price does not tell you in advance which one it will be, so the playbook does not guess. It waits for the reclaim close or for acceptance, and does not enter on the first break. A close beyond a level followed immediately by a close back inside is neither an accepted breakout nor a clean sweep yet: it may be a failed breakout, which lesson 7 covers.
Breakout acceptance
Bullish example
- 1Sweep: price trades below the Asia low, closes back above within three candles, then prints a bullish displacement candle.
- 2Breakout: price closes above the Asia high with a body of at least 1× ATR, and the next two candles close above it too.
- 3For either, check the 4H bias and the room to the next level before planning an entry.
Bearish example
- 1Sweep: price trades above the Asia high, closes back below within three candles, then prints a bearish displacement candle.
- 2Breakout: price closes below the Asia low with a large body, and the next two candles close below it too.
- 3For either, check the 4H bias and the room to the next level.
What confirms it?
- Sweep: reclaim close inside the window, plus displacement or a structure break.
- Breakout: strong close beyond, plus closes that hold or a retest that rejects.
- Both: closed candles only, inside an execution window.
What invalidates it?
- Sweep: price closes back beyond the level after the reclaim, or no displacement arrives in time.
- Breakout: the next candles close back inside the level.
- Either: the setup expires at session end.
Common mistakes
- Calling a wick a sweep.
- Calling a single close beyond a level an accepted breakout.
- Entering on the breaking candle instead of waiting for acceptance or a retest.
- Using intrabar prices in a backtest when the rules are written for closes.
Replay exercise
- In replay, find ten moments when gold traded beyond the Asia high or low during London.
- For each, wait three candles and write down: reclaim, acceptance, or neither.
- Count how often each happened. That count, not a quoted percentage, is your first evidence.
Quick quiz
Pick an answer to see the explanation. Nothing is saved.