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Liquidity sweeps and stop hunts

Short answer: a liquidity sweep is a quick move past an obvious level — just far enough to trigger the stop orders resting there — followed by a close back inside. It looks like a breakout on the wick and turns out to be a trap on the close.

Where stops cluster

Traders put their stops in the same obvious places: just under equal lows, just over equal highs, just past a round number or a well-known swing. Those clusters are pools of orders, and large traders need orders to fill size.

Sweep or breakout?

The difference is always the close on your timeframe — which is why a read should be based on closes, never on wicks.

Equal highs and equal lows

Two or more highs at almost the same price are a magnet: everyone sees them, so stops pile up just beyond. Price often runs them before it decides. When you see equal lows just under a floor, a dip under the floor that closes back above is more likely to be a sweep than a break.

Sylvo's market reads name the stop pools sitting just past the edges of the box when they are there.

Questions people ask

Is a stop hunt the same as a liquidity sweep?

Yes, two names for the same thing: a quick move through the obvious stops, then back.

How do I avoid getting swept?

Avoid placing stops exactly at the obvious spot — just under equal lows or a round number. Use closes, and place the stop where the idea is actually wrong, not where everyone else's is.

Can a sweep be a good entry?

Often. A sweep of the lows that closes back above support, at a level that held before, is one of the cleaner long setups — the stops are gone and the level held.

Keep reading

General education, not financial advice.

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