Wick

Liquidity grab vs real breakout

Liquidity & Stop Hunts

The single question that separates them

Did price CLOSE beyond the level, or just wick through it? A grab wicks and snaps back inside. A real breakout closes outside the level and, ideally, holds on a retest.

Retest behavior confirms the read

After a real breakout, the old resistance should hold as new support on the first pullback. After a grab, that same level gets sliced right back through, because it was never truly broken, just visited.

Context decides which one you're seeing

A break INTO a known liquidity pool, like equal highs or an old high, is grab-suspicious by default. A break into open air with no obvious pool nearby is far more likely to be a genuine, tradeable move.

Check yourself

The clearest first clue that a break above resistance might be a liquidity grab, not a real breakout, is…

  1. The candle closes back below the old resistance correct
  2. The candle closes well above resistance
  3. Volume was heavy on the break

A close back inside the old level is the market rejecting the new ground it just took. The signature of a grab.

Learn this properly

This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.

Open the lesson

Related terms