Smart Money Concept / ICT
Liquidity Sweep (Stop Hunt)
A quick spike through a level to grab resting orders before reversing.
What is Liquidity Sweep (Stop Hunt)?
A liquidity sweep, also called a stop hunt or liquidity grab, is an ICT/Smart Money concept: price briefly spikes through an obvious high or low to trigger the resting stop orders sitting there, then reverses. The grab itself is the signal.
How it works
Equal highs/lows, prior swing points and session extremes accumulate stop orders. A sweep wicks through that level (taking the liquidity) and closes back inside, showing the move was a grab rather than a genuine breakout. Traders then look to enter in the reversal direction, often with confluence from an order block or fair value gap left by the move.
How traders use it
- ▸Reversal entries: trade back the other way after the grab.
- ▸Stop placement: beyond the swept extreme (where liquidity was taken).
- ▸Confluence: pair the sweep with an order block or FVG.
- ▸Targets: the opposing liquidity pool as an objective.
Build Liquidity Sweep (Stop Hunt) without code in Algovex
Algovex detects liquidity sweeps as an event you can trade, wick-through-and-reclaim of a level, tracked and drawn on the chart. Combine the sweep with structure for entries, backtest, and export. For grab strategies use sweep-based triggers so the level isn't consumed before the grab fires.
Key parameters
| Parameter | What it does |
|---|---|
| lookbackBars | How far back to find the swept level (use large values). |
| tolerancePct | How close counts as the same level (never 0). |
Frequently asked questions
What is the difference between a liquidity sweep and a breakout?
A breakout closes through a level and holds; a liquidity sweep wicks through to grab stops and then closes back inside, reversing. The reversal is what sweep traders trade. Algovex distinguishes the two so you can trade the grab.
How do I trade a stop hunt?
Wait for price to sweep an obvious high or low and reclaim it, then enter in the reversal direction with a stop beyond the swept extreme, ideally with order-block or FVG confluence. Algovex lets you build and backtest exactly this.