Liquidity Sweep Explained #fypsg #smc #forexstrategy #scalping #orderblock

What is a liquidity sweep? Imagine a group of mango sellers in a market. Normally, they buy mangoes from a farmer for $3 and sell them for $5. Now, one of those sellers is secretly friends with the farmer. So one day, they make a deal. Instead of selling the mangoes for $3, the farmer raises the price to $5. At first, the other sellers think the price is too high. But then, it keeps rising and rising. Soon, they start thinking, "What if it goes to $7 or even $10?" So, they rush in and start buying at $5, hoping to sell for an even higher price later. But that rising price was only meant to attract buyers. Once all the other sellers have bought in, the farmer drops the price again. Now, the sellers who bought it $5 are stuck, but the farmer's friend isn't worried. He already bought his mangoes at a much lower price. So, while everyone else is trapped, he can still sell it $5 and make a profit. That is exactly how a liquidity sweep works. Price moves up, gets everyone excited, pulls traders into the market, and then suddenly reverses against them. Now, let's see what that looks like on a chart. Here, traders are placing their trades around the same area. Just like the mango sellers, everyone is gathered in one spot. This area is what we call liquidity. Now, traders think it's going higher. So, they start buying. Price pushes into that liquidity area, triggering all those buy orders, and then it drops. That move is the liquidity sweep.