Liquidity Sweep (Liquidity Grab): What It Is and How to Trade It

Have you ever watched price hit your stop-loss before reversing in the direction you originally predicted? If so, you may have been caught in a liquidity sweep, a common feature of institutional price action.A liquidity sweep occurs when price briefly breaks a key level, triggering a cluster of stop-loss and pending orders, before reversing. These orders create the liquidity that large market participants may use to enter positions, often at the expense of retail traders whose stop-losses are tr