Get a complete step by step liquidity grab/sweep trading strategy with entry, stop loss and target.
Learn how to trade liquidity grab / sweep with multiple time frame analysis.
Discover how to combine top-down analysis and Smart Money Concept SMC for trading Forex.
DO THIS FIRST
In order to trade liquidity grab / sweep properly, you need to find liquidity zones first.
For this trading strategy, the best liquidity zones will be on a daily time frame.
Check these 2 significant liquidity zones on EURAUD forex pair on a daily.
The zone where the selling activity concentrate will be called a supply zone. While the zone with a strong concentration of a buying activity will be a demand zone.
LOOK FOR THIS
After that, you should look for a liquidity grab / sweep.
For a valid liquidity grab / sweep the daily candle should violate the liquidity zone only with the tail / wick of the candle, while the body should stay within the zone.
Above is the example of a liquidity grab of a demand zone.
While the daily candle closed within the underlined area, the wick went beyond that.
TOP-DOWN Analysis
After you identified a liquidity grab/sweep, start analyzing lower time frames.
For this SMC strategy, the best time frames are 4H and 1H.
On these time frames, you should look for a consolidation and a formation of a horizontal range.
Here is such a range on EURAUD on a 4H.
Best Confirmation Signal
These ranges will be used for confirmation.
Your bullish signal will be a breakout of the resistance of the range,
it will confirm a strong buying interest after a liquidity grab.
That is the great example of such a confirmation.
After that, set a buy limit order on a retest of a broken resistance of the range. Take profit will be the closest strong resistance, stop loss will be below the support of the range.
That is how we trade a liquidity grab/sweep of a demand zone.
Sell Signal
With the supply zone liquidity grab trading strategy, you should wait for a bullish liquidity sweep on a daily followed by a bearish breakout of a range on a 4H / 1H time frames.
I always say to my students that a single time frame analysis is not sufficient for profitable trading SMC.
A proper combination of multiple time frames is the key to consistent profits.
Following this strategy, you should achieve up to 80% winning rate trading liquidity grabs / sweeps.
