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Liquidity Sweeps

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3K views4 pages

Liquidity Sweeps

Uploaded by

christianjor66
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Liquidity Sweeps

What’s that?

Basically, liquidity sweep is when banks need to quickly execute a


large order by searching and utilizing available liquidity at various price
levels.

The algorithms are built to deliver trillions of dollars daily, so it need


liquidity to refill their orders.

The purpose is to minimize the impact of the large order on the


market price, ensuring efficient and effective trade execution.

How to identify?

First of all, we need to find a POI (Point of interest)


In common words, we look for the potential price of interest, where lots of
orders will give liquidity to the banks

It can be:
● PDL/PDH (Previous Day Low/High)
● PWL/PWL (Same, but weekly.)
● HTF FVG
● Session Ranges Lows/Highs

Secondly, we need to “sweep” this POI. Obviously, it wouldn’t


“Liquidity Sweeps” without sweeping something)
The moment we create a new high/low or enter 0.5 of FVG we can
start looking for confirmations to enter the trade, placing our stop behind
the sweep and TP at the opposite POI.
Examples:
Set Up:
Check out our FREE Demo E-Book
by clicking the link below

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