Liquidity and Sweep Indicators for Smart Money Analysis

A liquidity sweep is a quick push beyond a swing high or low, where stops are thought to cluster, followed by a close back inside. In smart money terms, buy stops are assumed above highs and sell stops below lows; an indicator flags the event when a wick pierces the level and the candle closes back.

They typically start from swing points: a fractal-style rule marks a high with lower highs on each side, or a low with higher lows, and draws a line there. Equal highs or lows within a small tolerance are often highlighted as larger pools, since many stops may rest beyond them.

No, an alert only reports that price ran a level and returned; nothing is sent to the market. Entry, stop placement and size stay with the trader, or with a separately configured cBot, and such tools display only in cTrader's desktop apps for Windows and macOS.

Swing strength, the number of bars required on each side of a high or low, matters most: larger values keep only major levels. Equal-level tolerance, how long levels stay active and whether a close back inside is required also reshape the picture, and paid, free and trial versions differ in which of these they expose.

Price that pierces a level may keep going, turning an apparent sweep into a breakout, and swing levels are confirmed only after later bars form. In currency markets resting orders are inferred from price rather than seen in a central book, so a marked pool is an estimate and trades around it can lose.