Liquidity Hunt

Above every obvious high and below every obvious low, stop orders pile up. Big players need that liquidity to fill their orders, so price often pokes through those levels before turning.

The liquidity hunt strategy waits for the sweep and the close back inside, then for a change of character on a lower timeframe before entering, so you trade the turn instead of being its victim.

When it works

At the London and New York opens, around the previous day's or the Asian session's extremes. Less reliable in strong one-way trends, where sweeps keep going.

The setup

Price wicks beyond the previous day's high or low (or the Asian session's) and closes back inside.

Common mistakes

• Entering as soon as the level breaks, before price closes back inside.
• Skipping the change of character confirmation.
• Putting the stop inside the sweep wick.