Liquidity

Stop orders cluster above old highs and below old lows. Price often sweeps these levels (a quick spike beyond them) then reverses — trapping breakout traders. Recognizing a sweep + reversal is a high-probability SMC context.

Entry / stop / target

Entry: after a liquidity sweep + structure shift (CHoCH) back the other way. Stop: beyond the sweep wick. Target: the opposite liquidity pool. Risk: 1-2% max — sweeps can extend.

Filters

Prefer sweeps at obvious highs/lows aligned with your HTF bias. Avoid mid-range sweeps.

Backtest checklist

  • Was there a clear pool (equal highs/lows)?
  • Did price sweep AND shift structure?
  • Did entry respect HTF bias?
  • R:R at least 1:2?