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Liquidity Sweep

Brokers & Regulation

A fast move through a zone of clustered stop and pending orders, which often stalls or reverses once that liquidity is consumed.

A liquidity sweep is a fast move through a price area where many resting orders are clustered — typically just beyond an obvious high, low or round number, where stop-loss and pending orders accumulate. As price reaches the zone those orders trigger, adding fuel to the move, and once they are exhausted the market often stalls or turns because the buying or selling behind the push has been consumed. Traders also call this a stop run. The term describes order-book mechanics rather than proof of deliberate manipulation: liquidity naturally builds at visible levels, and any large participant executing there will pass through it. Recognising the pattern is common in price action analysis.

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