Glossary term
Liquidity Sweep
A move through a prior high or low that then closes back inside.
A liquidity sweep is a price-action pattern where price briefly trades beyond an obvious swing level, potentially triggering stops or breakout orders, then reverses back inside the prior range. SMC traders often interpret this as stop hunting or liquidity collection.
Example: If SPY trades below a prior swing low intraday but closes back above it, a strategy may mark that as a downside liquidity sweep.