A "pro" trading setup using a liquidity sweep
A "pro" trading setup using a liquidity sweep A "pro" trading setup using a liquidity sweep involves identifying areas on a chart where significant orders (liquidity) are likely clustered, waiting for the price to aggressively move into that area (the sweep), and then entering a trade in the opposite direction once a strong reversal confirmation occurs. This approach aims to align with institutional traders who engineered the move. Mechanics of a Liquidity Sweep Large financial institutions need vast amounts of orders to fill their positions without causing excessive price slippage. They push the price into areas where many retail traders place their stop-loss and pending orders (liquidity zones), trigger those orders, and then reverse the price for their intended move. Buyside Liquidity (BSL): Resting stop-loss orders above swing highs or resistance levels. Sweeping BSL often precedes a bearish reversal. Sellside Liquidity (SSL): Resting stop-loss orders b...