ZoneEdu
BeginnerLesson 1 of 4 · 8 min

Liquidity and Sweeps

Where stop orders tend to cluster, and what a sweep of those levels looks like.

Illustrative chart · Sweep of equal lows
Equal lows1Low2Low3Sweep
Equal lows (1, 2) attract stop orders beneath them. Price dips below (3) and quickly reclaims the level.

What liquidity means here

In this vocabulary, liquidity refers to resting orders — often protective stops above obvious highs and below obvious lows. Equal highs and equal lows are classic examples.

The sweep

A sweep is a brief move through such a level followed by a return. It is a description of behaviour; on its own it does not tell you what happens next.

Key takeaways

  • Obvious highs/lows often hold resting stops.
  • A sweep takes the level then reclaims it.
  • Combine with structure before acting.

Charts are illustrative examples, not real market data. This content is for educational purposes only and is not financial advice.