advanced · TRADING LEARNING GUIDE
Liquidity sweep and reclaim
What is this concept?
A sweep label describes a move beyond a reference level followed by a reclaim under a specified rule. OHLC alone cannot prove whose stops traded or participant intent.
Step by step
Choose the level before the event. Define how far price must cross it and when a reclaim counts. Record spread, session and subsequent invalidation.
From observation to decision
Record the instrument, venue, session and timeframe. Classify the observation using the definition, then write at least one alternative interpretation. Decide what evidence would invalidate your idea before entry. Mark missing information explicitly. Examples are hypothetical. Collect paper observations, including failures. Include fees, spread, slippage and timestamp alignment when measuring outcomes. Recognizing a chart shape and establishing a profitable trading rule are separate tasks.
Worked example
Previous low 100; low 99.4 and close 100.8 reclaim it. A close 99.6 does not satisfy the same close-based reclaim condition.
Common mistakes and limits
Do not infer hidden order flow from shape alone or label every failed breakout a profitable sweep.
Practice
Track reclaimed and non-reclaimed crossings, including failures and costs, under one fixed rule.
Resources and further reading
These sources explain definitions and underlying mechanics. Worked examples are original illustrations; a source does not establish the profitability of a custom pattern.
Further reading / foundational context. Worked examples on this page are original illustrations, not source performance claims.
Further reading / foundational context. Worked examples on this page are original illustrations, not source performance claims.