Liquidity Sweep Calculator
Quickly compute liquidity sweep with accurate formulas. See amortization schedules, growth projections, and side-by-side comparisons.
Formula
High Sweep = Actual High − Previous High | Low Sweep = Previous Low − Actual Low | Entry Distance = |Entry − Sweep Point|
A liquidity sweep is measured by the distance price exceeds a previous key level. For a high sweep, subtract the previous high from the actual high reached. For a low sweep, subtract the actual low from the previous low. Entry distance measures how far your entry is from the extreme sweep point, which helps evaluate your risk.
Worked Examples
Example 1: Buy-side Liquidity Sweep EUR/USD
Problem: Previous high: 1.1000, price reached 1.1010 before reversing. Entry after sweep at 1.0980. How much liquidity was grabbed?
Solution: Sweep distance = 1.1010 - 1.1000 = 0.0010 = 10 pips\nPrice swept 10 pips above the previous high\nEntry distance from sweep = 1.1010 - 1.0980 = 30 pips\nAll stop losses and buy stops above 1.1000 were triggered
Result: Buy-side sweep: 10 pips | Entry: 30 pips from sweep high
Example 2: Sell-side Liquidity Sweep GBP/USD
Problem: Previous low: 1.2700, price reached 1.2688 before reversing. Entry long at 1.2710.
Solution: Sweep distance = 1.2700 - 1.2688 = 0.0012 = 12 pips\nPrice swept 12 pips below the previous low\nEntry distance from sweep = 1.2710 - 1.2688 = 22 pips\nAll stop losses and sell stops below 1.2700 were triggered
Result: Sell-side sweep: 12 pips | Entry: 22 pips from sweep low
Frequently Asked Questions
What is a liquidity sweep in ICT trading?
A liquidity sweep (also called a liquidity grab or stop hunt) occurs when price temporarily moves beyond a significant high or low to trigger stop loss orders and pending orders clustered at those levels, then quickly reverses. In ICT methodology, this is considered a deliberate action by institutional traders and market makers who need the opposite side of the market to fill their large positions. For example, if institutions want to buy, they may push price below a previous low to trigger sell stops, thereby creating the sell-side liquidity they need to fill buy orders. Recognizing liquidity sweeps is crucial for identifying potential reversal points and timing entries.
How do you identify a liquidity sweep on the chart?
A liquidity sweep is identified when price breaks beyond a key level (swing high, swing low, equal highs/lows, or previous session high/low) but fails to hold and quickly reverses. On the chart, it often appears as a long wick or spike beyond the level followed by a close back within the range. Key signs include: price taking out a well-defined level, a quick rejection wick, increased volume at the sweep point, and a shift in market structure after the sweep. Look for sweeps at daily highs/lows, weekly levels, and obvious swing points where retail traders typically place their stop losses. The most significant sweeps occur during ICT killzone times.
What is the difference between a liquidity sweep and a breakout?
The key difference lies in what happens after price breaks the level. A genuine breakout sees price close beyond the level and continue in that direction with follow-through momentum and often retests the broken level as new support or resistance. A liquidity sweep, however, breaks the level briefly (usually just by a few pips) and then reverses, with price closing back on the original side of the level. Breakouts are supported by genuine institutional buying or selling in the breakout direction, while sweeps are designed to collect opposing liquidity before the real move in the opposite direction. Volume analysis, candle close location, and subsequent market structure can help distinguish between the two.
Where does liquidity pool in the forex market?
Liquidity pools form at predictable price levels where retail traders cluster their orders. The most common locations include: swing highs and swing lows where traders place stop losses, equal highs and equal lows which create obvious double top/bottom patterns, round numbers or psychological levels like 1.1000, previous session highs and lows (Asian, London, New York), daily and weekly open prices, and trendline touch points. In ICT methodology, these are called 'external range liquidity' when above highs or below lows, and 'internal range liquidity' when within fair value gaps and order blocks. Smart money traders use these pools as targets and entry mechanisms for their positions.
How do you trade after a liquidity sweep?
After identifying a liquidity sweep, wait for confirmation before entering a trade. The confirmation typically comes in the form of a market structure shift on a lower timeframe — for example, after a low sweep, look for price to start making higher highs and higher lows on the 1-minute or 5-minute chart. Enter at an order block or fair value gap that forms after the sweep, with your stop loss placed just beyond the sweep point. Target the opposite side of the range or the next liquidity pool. For example, after a sweep of lows, go long targeting the highs. The risk-reward is typically excellent because your stop is tight (just beyond the sweep wick) while your target is the opposite range extreme.
Can I use Liquidity Sweep Calculator on a mobile device?
Yes. All calculators on NovaCalculator are fully responsive and work on smartphones, tablets, and desktops. The layout adapts automatically to your screen size.