A liquidity sweep (or "stop hunt") is when price spikes through an obvious level — like equal highs or lows — to trigger the stop-losses clustered there, then quickly reverses. Big players use those stops as the liquidity they need to fill orders. The real move usually starts after the sweep.
It feels personal — like the market hit your stop on purpose. It kind of did. Understanding it stops you from being the fuel.
Tap to go deeper ↓
Why your stop is someone else's liquidity
To fill a large order, a big player needs lots of opposite orders to trade against. Where do thousands of orders conveniently sit? Just beyond obvious levels — equal highs, equal lows, round numbers — where retail stops cluster. Pushing price into those stops creates exactly the liquidity they need.
What a sweep looks like
It often runs in phases: a quiet approach (volume drops) → an aggressive spike through the level (stops trigger) → a snap back inside → a new move forms. The give-away is the fast rejection: a real breakout holds, a sweep doesn't.
Sweep vs real breakout
A breakout closes beyond the level and holds, often on rising volume — the move continues. A sweep spikes past, fails to hold, and snaps back inside. Order flow (CVD) helps confirm: on a genuine sweep, aggressive buying surges right after the rejection. When in doubt, wait for the close.
Quick check — price spikes just above equal highs, then slams back below. Sweep or breakout?
Key takeaways
- A sweep spikes through obvious stops, then reverses.
- Your stop beyond an obvious level is liquidity for bigger players.
- Sweep = poke and reject; breakout = close and hold.
FAQ
What is a liquidity sweep?
A liquidity sweep, or stop hunt, is when price spikes through an obvious level such as equal highs or lows to trigger the stop-losses clustered there, then quickly reverses. Large players use those stops as the liquidity needed to fill their orders, so the real move often begins after the sweep.
Why does the market hit my stop and then reverse?
Because your stop, placed just beyond an obvious level, sits in a pool of liquidity that larger players target. Pushing price into those stops creates the orders they need to fill, after which price often reverses — it's a structural feature of the market, not bad luck.
How do I tell a sweep from a real breakout?
A breakout closes beyond the level and holds, usually on rising volume, and the move continues. A sweep spikes past, fails to hold, and snaps back inside quickly. Waiting for the candle to close — and checking order flow (CVD) — helps distinguish them.
How can I avoid getting swept?
Avoid placing stops right at the obvious level where everyone else's sit; give them room beyond the liquidity, or wait for the sweep and the reversal confirmation before entering. The goal is to not be the liquidity that fuels someone else's entry.