A liquidity sweep can be a powerful signal, but only if price reclaims the level afterward. Without the reclaim, it may just be a breakdown.
I watch for price to take a prior high or low, then close back inside the range. That tells me the breakout attempt failed and trapped late traders. The reclaim gives the setup structure.
The best sweeps usually happen at obvious levels. If the level is not obvious, the signal is weaker because fewer traders are likely positioned around it.
I do not enter just because price wicks. I want confirmation that the market rejected the move. The reclaim is the important part.
I watch for price to take a prior high or low, then close back inside the range. That tells me the breakout attempt failed and trapped late traders. The reclaim gives the setup structure.
The best sweeps usually happen at obvious levels. If the level is not obvious, the signal is weaker because fewer traders are likely positioned around it.
I do not enter just because price wicks. I want confirmation that the market rejected the move. The reclaim is the important part.
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