Liquidity guide
Liquidity sweep: when price hunts the stops
Stops cluster above highs and below lows. Price frequently runs those levels and snaps back: that is a liquidity sweep, and it is often the start of the real move.
- Session high/low sweeps
- Sweep vs breakout
- Confirmation with CHoCH
- Stop beyond the sweep
How to spot a sweep
Price trades through an obvious level (previous day low, Asian high, equal highs) with a wick or a few candles, then closes back inside with momentum. A change of character afterwards confirms it.
Sweep or breakout?
A breakout closes beyond the level and continues; a sweep rejects quickly. Waiting for candle close and reaction avoids confusing them.
Sweeps in FIMO X
Each liquidity level is tracked as taken or untaken. A recent sweep raises setup quality; untaken levels become targets.
Frequently asked questions
What is liquidity in trading?
Resting orders, mostly stop losses, clustered above highs and below lows.
Where should the stop go after a sweep?
Beyond the sweep extreme, with a small buffer.
Is a sweep enough to enter?
No. Wait for a structure shift and a clear entry zone.
Related guides
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