I’ve been watching a lot of these liquidity sweep setups lately, and I’m not fully sure the sweep is the important part anymore.
The obvious read is always the same: price runs the prior low, stops get cleared, then buyers step in. Sometimes that is exactly the trade. But I’ve noticed the cleaner signal might actually come after that, when price tries to reclaim VWAP or the old breakdown area.
If it reclaims and holds, fine, maybe the flush was just a trap. But if it bounces into that level and stalls, that feels very different. That is usually where the dip-buy narrative starts getting weaker for me.
Could be wrong, because waiting for confirmation means missing some sharp reversals. But buying the flush without seeing acceptance back above the level has probably cost me more than being late.
The messy part is both sides make sense. It could be a reset inside trend, or it could be early structure damage.
A few of us have been comparing notes on these sweep/reclaim setups lately, mostly around VWAP and failed breakdowns. Curious where others draw the line: is the sweep enough for you, or do you need the reclaim first?