Trading the sweep-and-reclaim

Liquidity & Stop Hunts

The setup in three steps

One: mark a clean liquidity pool, like equal highs or lows or an old level. Two: wait for price to wick through it. Three: enter only after price closes back on the correct side, never during the wick itself.

Stop goes beyond the wick, not the level

Your stop belongs past the EXTREME of the sweep wick, not at the original level. The whole reason this trade exists is that the level itself got violated. Protect against the sweep repeating, deeper.

Reclaim speed is the tell

A sharp, fast close back through the level on an expanding candle is a strong reclaim. A slow, weak drift back inside on a tiny candle is a much lower-conviction signal. Size and confidence should scale with the strength of the reclaim.