Obvious highs and lows collect stop orders. Shorts have stops above the high. Longs have stops below the low. Large players who need size know exactly where that liquidity is.

What a sweep is

A sweep is a quick move through an obvious level that triggers those stops, followed by a fast return back inside the range. The stops provided the liquidity, and the move was never meant to continue.

Sweep or breakout?

• Sweep: price pokes through, volume spikes, then price closes back inside within a bar or two. Delta often diverges.

• Breakout: price holds beyond the level, pullbacks stay above it, and delta keeps building in the direction of the move.

How to trade a sweep

1. Mark the obvious highs and lows: previous day high and low, overnight high and low, and clear swing points.

2. Wait for price to trade through and then close back inside.

3. Enter on the reclaim with a stop beyond the sweep extreme.

4. Target the other side of the range or the POC.

Common mistakes

Do not guess the sweep before it happens. Let price take the level first. And do not fade every breakout. In a trending, short gamma market, real breakouts are common.

In HOC Charts

The Key Levels and Liquidity Events indicators mark previous highs and lows and flag sweeps when they happen.