Smart-money concept

Liquidity Sweep / Stop Hunt

A sharp push past an obvious high or low to trigger clustered stop-losses, then a snap back the other way.

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What it is

Stop-losses and pending orders pile up just beyond obvious swing highs and lows. A liquidity sweep (or stop hunt) is when price spikes through that level, fills those orders, then quickly reverses — the move was about grabbing liquidity, not a genuine breakout.

What it signals

It often marks a turning point: once the stops are taken, price frequently reverses hard in the opposite direction. A sweep of sell-side liquidity (below a low) can precede a rally, and vice-versa.

How to spot it

Look for a quick wick or false break just beyond a clear high/low, immediately followed by a close back inside the range. The failed-breakout-plus-reversal is the tell.

One caveat

Not every break is a sweep — some are real breakouts. The reversal and close back inside is what distinguishes a sweep, and it is a proxy read, not a look at a real order book.

Related terms

Order BlockFair Value Gap (FVG)Support & ResistanceMarket Structure

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