RESEARCH_NODE :: LIQUIDITY_SWEEPS
Liquidity
Sweeps
A deep structural study of how price seeks liquidity, hunts stops, induces traders, and expands through displacement.
STATUS
ACTIVE
TYPE
MARKET_STRUCTURE
FOCUS
LIQUIDITY ENGINEERING
CORE_THEORY
Liquidity sweeps occur when price deliberately moves beyond obvious highs or lows to capture liquidity before reversing or continuing in a strong displacement move.
→ External liquidity is taken first
→ Stop losses are triggered (retail liquidity)
→ Market structure shifts (MSS)
→ Displacement confirms intent
→ Fair value gaps form after expansion
STRUCTURE_LAYERS
Accumulation Zone
Price consolidates before liquidity grab.
Liquidity Sweep
False breakout designed to trap positions.
Displacement
Strong impulsive move in opposite direction.
Rebalancing
Market returns to fair value inefficiencies.
This research module is continuously evolving. Future updates will include charts, backtesting results, and interactive market simulations.