A liquidity sweep is when price briefly pushes past a level where many orders are resting (usually stop losses above a high or below a low), triggers them, and then reverses. On NAS100, sweeps often happen right before the day's main move.
Where liquidity sits
- Buy-side liquidity: above obvious highs (previous day high, session highs, equal highs).
- Sell-side liquidity: below obvious lows.
The more obvious the level, the more orders tend to cluster there.
Why sweeps happen
Large orders need liquidity to be filled. Stop orders resting beyond a level provide it. When price runs those stops and immediately rejects, it often signals that the move through the level was not genuine.
A simple liquidity sweep strategy
- Before the session, mark the Asia and London highs and lows.
- Wait for price to sweep one of them, ideally around the New York open.
- Look for a lower-timeframe break of structure back in the opposite direction.
- Enter with the stop beyond the sweep and target the opposite level.
Sweep or breakout?
Not every move through a level is a sweep. A genuine breakout holds beyond the level and continues; a sweep fails and closes back inside. Waiting for confirmation is what separates the two, and it is why patience matters more than speed.
Trading leveraged products such as NAS100 carries a high risk of loss. This article is education, not financial advice. Read our risk disclaimer.