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?