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WHY STOPS GET HUNTED

Liquidity Sweeps

Watch the full video alongside our detailed notes and extra learning resources in this full cheat sheet companion guide.

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01
Section 1 0:42

What Is Liquidity?

What you'll learn: The reframing: liquidity isn't "how much volume" - it's where resting orders sit. Mostly stops. Mostly retail's.

Key Moments
Core Concepts
Critical Takeaways
  • Liquidity = orders. Retail stops are the fuel.
  • BSL above. SSL below. The market alternates between hunting them.
  • Your stop placement is predictable. That makes it a target.
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02
Section 2 7:17

Why Price Hunts Stops

What you'll learn: The mechanics behind the chase: institutions need fills, obvious stop placements give them fills, news events are the cover for the move.

Key Moments
Critical Takeaways
  • If your stop placement is "obvious", assume others made the same call. The cluster is the target.
  • Liquidity engineering = building confidence with a trend, then sweeping all the stops at once.
  • News explains the timing of a move. Liquidity explains the destination.
03
Section 3 13:15

Liquidity Sweeps Explained

What you'll learn: The two-pattern toolkit (SFP and Break & Close), and why displacement is the only confirmation that turns a sweep into a setup.

Key Moments
Core Concepts
Critical Takeaways
  • Sweep + rejection + displacement = the full signature. All three.
  • Break & Close = body went through and came back. SFP = wick only, body stayed.
  • Displacement is the confirmation. Without it, you're trading a wick that means nothing.
04
Section 4 22:54

Real Chart Examples

What you'll learn: Live examples on Bitcoin, Nvidia, and the S&P that show liquidity sweeps preceding every major move - and how news events provide cover.

Key Moments
Critical Takeaways
  • On BTC, you can pre-load the major moves by spotting the sweep first.
  • Earnings beats can still be liquidity sweeps. Good news is the cover for the move.
  • HTF sweeps produce bigger moves than LTF ones. The weekly is where it's most powerful.
05
Section 5 30:47

Your Stops Become Your Entries

What you'll learn: The reframe that turns frustration into edge. The levels where you used to place stops are now the levels where you wait for setups.

Key Moments
Critical Takeaways
  • Liquidity is the fuel. Smart money needs your stops to fill their orders.
  • Obvious stop placement is predictable. The more obvious, the more likely it gets run.
  • Reframe the levels where your stops used to live as the levels where you wait. They're the same levels.
Practical Tip

Set alerts at every major swing high and low on the daily and weekly. When price approaches, wait for the sweep + displacement. Trade after both, not before.

Putting It All Together

Your Sweep Workflow

Stop hunting stops. Start hunting sweeps.

1

Mark obvious levels

Major swing highs, swing lows, equal highs/lows, support, resistance. Where would retail put stops?

2

Identify the liquidity

BSL above. SSL below. Mark them.

3

Wait for the sweep

Price has to run the level. Don't pre-empt.

4

Check the candle type

Break & Close (body crossed) or SFP (wick only)? Both work.

5

Wait for displacement

Aggressive move in the post-sweep direction. Without it, no setup.

6

Enter after displacement

Stop on the far side of the sweep wick. Target the next liquidity pool.

7

Practice on Breakout

Start a trading test at breakoutprop.com. Real markets, structured risk - the best way to learn.

Put it to work
Take what you learned here into a real evaluation. Pass, get funded, keep 80-90% of profits.
Purchase an Evaluation