Liquidity Sweep (Stop Hunt)
BullishReversalIntermediateOne wick dips under two equal lows, takes out the stops, and closes back above.
Verdict: SkipBitcoin 4H: 8 trades, won 63%, avg trade −0.3% vs random day +0.2% (too few trades to judge). Backtest
Price makes a low, bounces, and comes back to almost the exact same low. Two equal lows.
step 1/7
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | Two equal minor swing lows (within a quarter ATR). The first candle to trade below them closes back above both, in the same candle. Within 3 candles, a candle CLOSES above that sweep candle's high. |
| Cancelled if | The first candle below the lows closes below them (no sweep), price closes above the high between the lows first, or trades below the sweep candle's low before the entry. |
| Target | To the other side, projected from the breakout |
3 common mistakes
- Buying during the wick, before the candle has even closed.
- Calling any long wick a sweep. It needs equal lows where stops actually cluster.
- Stop inside the wick. If the hunt continues, the wick's low is the line.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 8 | 63% | −0.25% | +0.24% |
| US large caps (50) · 1D · 2016-2026 | 55 | 49% | −0.42% | +0.43% |
Verdict: SkipLost money on average on US large caps. Bitcoin had too few signals to judge.
pattern −23%random +23%