PatternLabs

Liquidity Sweep

Filter in the app: Liquidity grab above highs · Liquidity grab below lows

A liquidity sweep is a spike through a prior high or a prior low, into the area where stop orders are often assumed to sit, followed by a quick move back. People search for a liquidity sweep when they want a name for that poke beyond a swing. A liquidity sweep is not a promise that price will reverse, and it is not a promise of profit. In PatternLabs the buttons are Liquidity grab above highs and Liquidity grab below lows. This page explains the liquidity sweep and how a scan uses it. It is not financial advice and not a signal that price will go up.

What a liquidity sweep shows

Above old highs, and below old lows, many traders place stops. A liquidity sweep is the print that trades through one of those swings and then leaves. A sweep of highs pokes above a swing high. A sweep of lows pokes below a swing low. Liquidity grab above highs and Liquidity grab below lows are about that excursion and the return, not about a slow break that keeps going. The chart either shows the spike or it does not. The label does not tell you why the orders were there, and it does not tell you what the next hour will do.

What a liquidity sweep does not say

A liquidity sweep is not proof of a trap and not a reason by itself to take the other side. Price can sweep a high and then keep rising. Price can sweep a low and then keep falling. The word sweep describes the shape. PatternLabs does not send an order when Liquidity grab above highs or Liquidity grab below lows matches. The filter finds pairs where that shape is present. A row in the results is a chart to inspect. It is not a completed trade idea.

How to look for a Liquidity Sweep in PatternLabs

Open PatternLabs and pick a market. Add Liquidity grab above highs or Liquidity grab below lows to the filter chain on the timeframe you want to read. The scan lists crypto spot and forex pairs where that condition matches. Open the chart and check that the spike really did trade beyond the swing and come back. You can add filters that already exist, such as BOS, Volume, Liquidity above highs, or Liquidity below lows. The names in the app are Liquidity grab above highs and Liquidity grab below lows.

How to read a match

Look at which high or low was swept, and how far price snapped back. A tiny wick through a minor swing is a different picture from a liquidity sweep of a level the whole session has been watching. Also check the larger timeframe so one sweep is not asked to explain the whole trend. PatternLabs shows the match. This page does not tell you to fade it, follow it, or expect a profit.

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