Liquidity Sweeps: The Secret Weapon of Smart Money in Crypto! đĽ
đ§ Ever Wonder Why Price Hits Your Stop... Then MOONS? Read This!
You entered a solid setup, placed your stop right below support, and BOOM â stop loss hit.
Then price instantly reverses and flies toward your target.
Sound familiar?
Thatâs not bad luck. Thatâs a liquidity sweep â and smart money just played you.
What is a Liquidity Sweep?
Itâs when price deliberately dips below support (or spikes above resistance) to trigger stop losses and trap retail traders â then reverses with power.
Why Does It Happen?
⢠Market makers need liquidity to fill large positions
⢠Retail stop losses = easy fuel
⢠So they grab it before the real move begins
How to Spot & Use Liquidity Sweeps:
1. Watch for Wicks Below Key Levels
⢠Price dips below support with a big wick? Thatâs likely a sweep
⢠If it quickly reclaims the level â bulls may take over
2. Donât Place Stops at Obvious Levels
⢠Avoid placing stops exactly at support or resistance
⢠Use buffers â be unpredictable
3. Look for Volume Spikes + Reversal Patterns
⢠Big volume on a sweep + engulfing candle = potential reversal play
Pro Tip:
Liquidity sweeps arenât your enemy â theyâre a signal.
Start viewing them as opportunities to enter, not exits filled with regret.
Follow me to decode more crypto mind tricks used by the big players â and how you can finally trade on their level!
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