Price often sweeps prior swing highs/lows to collect retail stop orders before reversing. This is 'liquidity grab.' Trade the reversal that follows: after a sharp sweep of a swing point, look for strong rejection and enter against the sweep direction.
Indicators Used
Liquidity GrabSwing Failure PatternVolume
Rules
📈 Long Reversal (Sellside Grab)
- Identify prior swing low with visible stops resting below
- Wait for price to spike through and take out that swing low
- Must show immediate rejection: long lower wick, quick reclaim
- Enter long on close of the reversal candle
- Stop: below the liquidity grab low (the extreme wick)
- Target: next swing high (buy-side liquidity), typically 3-5R
📉 Short Reversal (Buyside Grab)
- Price sweeps above a prior swing high
- Sharp rejection, upper wick with close back below the sweep level
- Enter short on candle close
- Stop: above the sweep high
- Target: next swing low
Strategy Flow
Swing Level Identified→Price Sweeps Beyond→Sharp Rejection Wick→Reclaim Close→ENTRY Against Sweep
4:1
Target R:R
1 candle
Sweep Duration
💡 Pro Tip
The speed of the rejection matters enormously. A 'grab and go'. One-candle spike followed by immediate reclaim. is a high-quality reversal. A slow, multi-candle drift below the swing low is usually a real breakout, not a grab.