Liquidity Sweep

Definition

A liquidity sweep (also called a 'stop hunt' or 'liquidity grab') is a price-action move that pushes briefly past a notable swing high or swing low to trigger stop-loss orders clustered above/below those levels, then reverses sharply in the opposite direction. ICT methodology interprets liquidity sweeps as deliberate institutional behaviour to harvest retail stop-loss liquidity before initiating the larger directional move. Detection requires identifying significant liquidity pools and confirming the reversal velocity; the EA implementation depends on configurable thresholds for what counts as a 'sweep' vs a genuine breakout.