ICT Liquidity Sweep Explained

What is Liquidity Sweep in ICT?

Price briefly trades through a known liquidity level and then returns back across it, suggesting stops beyond the level were triggered.

Definition of Liquidity Sweep

A temporary penetration of a prior high/low followed by rejection or reclaim; traders often seek confirmation from subsequent price delivery.

How to identify Liquidity Sweep

Pre-mark the level; observe a trade beyond it and a return across it. Stronger evidence includes displacement and a break of a nearby opposing swing.

Bullish Liquidity Sweep example

price sweeps below a prior low then reclaims it and moves higher.

Bearish Liquidity Sweep example

price sweeps above a prior high then falls back below and moves lower.

Liquidity Sweep chart examples

Practical trading example

A 5-minute candle wicks below equal lows, closes back above, and the next impulse breaks a short-term high; the sequence is a candidate bullish sweep setup.

Common mistakes and important notes

A wick alone is not a complete trade signal. News spikes and thin liquidity can produce false interpretations.

Related ICT concepts

Part of Liquidity Concepts. New to ICT? Start with the beginner guide.