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💧 Strategy 04 of 05

Liquidity Sweep

Follow the smart money. Profit from the hunt.

Liquidity Sweep targets a well-documented institutional behaviour: large players need liquidity to fill their positions, so they drive price into areas where retail stop losses are clustered — then reverse sharply. This strategy identifies those zones in advance and enters after the sweep, riding the reversal.

📊 Key Metrics

Avg. Hold Time 1–8 hrs
Win Rate Target 60–70%
Risk per Trade 1%
R:R Minimum 1 : 3
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⚙️ How It Works

Step-by-Step Execution

How the Alpha Momentum Engine executes this strategy in live markets.

01

Map liquidity pools

The engine identifies equal highs, equal lows, previous session highs/lows, and obvious swing points — areas where retail traders predictably place their stops.

02

Wait for the sweep

Price is monitored for a sharp spike into the liquidity zone — a wick that takes out the stops but doesn't sustain beyond the level.

03

Confirm the rejection

The sweep is confirmed when price closes back inside the zone within the same or next candle, showing that the liquidity grab is complete and direction is reversing.

04

Enter on the reversal

Entry is taken immediately after confirmation, with stop loss just beyond the sweep extreme and targets at the nearest opposing liquidity pool.

✅ Best Market Conditions

  • Clear, obvious liquidity pools visible on the chart
  • Asian or London session sweeps before NY opens
  • Low-volume spike into the zone (signs of a hunt)
  • HTF bias opposing the direction of the sweep

⚠️ Avoid When

  • No clear liquidity pools to target
  • Trending market with strong momentum into the zone
  • Fundamental reason for price to continue through the level