Smart Money / ICT
ICT Liquidity Grab
Trade the reversal after smart money sweeps liquidity and shifts structure.
The liquidity grab is a core ICT setup: price runs the stops above a high or below a low (taking liquidity), then sharply reverses. The grab itself is the signal, a failed breakout that traps breakout traders.
How it works
Price sweeps an obvious swing high/low, then shifts market structure in the opposite direction (a change of character). You enter on the retrace into the order block or fair value gap left by the reversal move, with a stop beyond the swept extreme. The confluence of sweep, structure shift and an entry zone is what gives the setup an edge.
Entry rules
- ▸Wait for a liquidity sweep of a clear high or low (wick through, close back inside).
- ▸Confirm a break/shift of structure in the reversal direction.
- ▸Enter on the retrace into the order block or fair value gap.
Exit & risk
- ▸Stop beyond the swept extreme (where liquidity was taken).
- ▸Target the opposing liquidity pool, respecting your risk-reward.
- ▸Invalidate if price closes back beyond the sweep.
Best for
Liquid markets with clear swing structure. Use sweep-based triggers so the level isn't consumed before the grab can fire.
Build this strategy in Algovex
Every component of this strategy is a node in Algovex — drop them on the canvas, connect the logic, backtest on a real engine, and export to code. No programming required.
Key terms
Frequently asked questions
How do you trade an ICT liquidity grab?
Wait for price to sweep an obvious high or low and reverse, confirm a structure shift, then enter on the retrace into an order block or fair value gap with a stop beyond the swept extreme. Algovex detects each component so you can build and backtest the full setup.