ICT Liquidity Sweep
Master the ICT liquidity sweep — the moment price takes out stop losses to fuel institutional entries. Learn sweep identification, confirmation, and high-R:R entry models.
What is a Liquidity Sweep?
A liquidity sweep occurs when price momentarily trades beyond a key level (swing high/low, equal H/L, session level) to trigger resting stop-loss orders and pending orders, then quickly reverses. It's the "manipulation" phase of AMD — the institutional fishing expedition for counterparty liquidity.
"The sweep IS the setup. Once liquidity is taken, the smart money has their orders filled and the true move begins." — ICT
Types of Liquidity Sweeps
1. Session Level Sweeps
- Sweep of Asian High/Low during London
- Sweep of London High/Low during NY
- Sweep of PDH/PDL (Previous Day High/Low)
2. Swing Point Sweeps
- Price takes out a recent swing high or swing low
- Quick wick beyond, then reversal
- Must be followed by displacement in the opposite direction
3. Equal High/Low Sweeps
- Multiple touches at the same level create "magnets"
- Sweep is pronounced — usually trades 5-15 pips beyond
- Very high probability of reversal after sweep
4. Trendline Sweeps
- Stop losses placed along trendlines
- "Breakout" takes the stops, then reverses
- Classic retail trap
Sweep Confirmation
A sweep alone is NOT enough to trade. You need confirmation:
Confirmation Checklist
- ✅ Price trades beyond the liquidity level
- ✅ Rejection candle forms (long wick, small body)
- ✅ MSS on LTF (5M/15M) — displacement in opposite direction
- ✅ FVG and/or OB created during the displacement
- ✅ Kill Zone timing aligns
What Invalidates a Sweep
- Price closes strongly beyond the level (not just a wick)
- No MSS follows — price continues in the sweep direction
- Multiple candles closing beyond = genuine breakout, not a sweep
Real Trading Examples
Example 1: PDH Sweep — EUR/USD Sell
- PDH: 1.0920
- Setup: NY AM opens, price spikes to 1.0928 (sweeps PDH)
- Confirmation: 5M bearish MSS at 1.0918, FVG at 1.0915-1.0920
- Entry: Sell at 1.0918 (FVG CE)
- Stop: 1.0930 (above sweep)
- Target: PDL at 1.0870
- R:R: 1:4
- BD Time: 5:45 PM
Example 2: Equal Lows Sweep — Gold Buy
- Equal Lows: Three touches at 2,025
- Setup: London KZ, price drops to 2,022 (sweeps equal lows)
- Confirmation: 15M bullish MSS, bullish OB at 2,027
- Entry: Buy at 2,027
- Stop: 2,020
- Target: BSL at 2,060
- R:R: 1:4.7
- BD Time: 1:30 PM
Sweep Trading Model
The 4-Step Process
- Anticipate — Mark all liquidity levels before the session
- Wait — Let price come to the liquidity (don't chase)
- Confirm — MSS + displacement after the sweep
- Execute — Enter at OB/FVG with stop beyond sweep extreme
Common Mistakes
❌ Fading every touch of a level — Wait for the SWEEP (trade beyond), not just a touch
❌ Entering during the sweep — Wait for MSS confirmation AFTER the sweep
❌ No HTF alignment — A sweep against HTF bias = continuation, not reversal
❌ Too tight stops — Place stop beyond the sweep extreme, not at the level itself
❌ Ignoring session context — Sweeps during Kill Zones are far more reliable
Summary
| Aspect | Details |
|---|---|
| Definition | Price trades beyond a key level then reverses |
| Purpose | Triggers stops = fills institutional orders |
| Confirmation | MSS + displacement + FVG creation |
| Entry | At OB/FVG after sweep confirmation |
| Stop | Beyond the sweep extreme |
| Best Levels | PDH/PDL, equal H/L, session levels |
Related Topics
- Liquidity — Understanding liquidity pools
- MSS — Confirmation after sweeps
- AMD — Sweeps are the manipulation phase
- Judas Swing — Session-opening sweeps
- ICT Kill Zones — When sweeps are most reliable