Liquidity SweepLiquidity Sweep / Stop Hunt

A Liquidity Sweep (also called a stop hunt or grab) is a rapid wick beyond a known liquidity pool followed by an immediate reversal back through the level. The classic signature: long lower wick (bullish sweep) or long upper wick (bearish sweep) on a single candle.

Sweeps work because institutions use the triggered stop orders as their counter-flow. Sell stops triggered = sellers in the market = institutions buying at a discount. The trade: wait for the sweep, wait for a BOS in the opposite direction on a lower timeframe, enter on the retest. R:R is typically 1:3+.