ICT Liquidity Sweep and Liquidity Run

Discover the difference between ICT liquidity sweep and liquidity run through detailed real market examples in this article.

With thorough study and dedicated market practice, you will be able to distinguish these concepts like a seasoned trader.

To understand the difference between liquidity sweep and liquidity run you should first learn about the Liquidity

Now lets start with understanding the liquidity sweep.

What is ICT Liquidity Sweep?

An ICT liquidity sweep refers to a price movement designed to capture liquidity before reversing direction.

For instance, the price may aim for equal highs, targeting buy-side liquidity, and momentarily surpass these highs but fail to close above them, subsequently reversing.

Alternatively, if the price closes above the highs, it quickly reverses with strong selling momentum.

This phenomenon is called a liquidity sweep because the price movement occurs primarily to capture liquidity.

How to Anticipate the Liquidity Sweep?

To anticipate the ICT liquidity sweep you should have a clear idea of higher time frame market structure.

(I)

If the higher timeframe market structure is Bullish and price is supposed to test the higher timeframe PD Array in Discount area.

Then price may target the equal lows or bearish Liquidity Pools to sweep the sell-side liquidity and then reverses to upside after tapping the higher timeframe PD array.

So in bullish trend if price target the equal lows or previous lows you can anticipate it as liquidity sweep until the market structure is bullish.

(II)

If the higher timeframe market structure is Bearish and price is supposed to test the higher timeframe PD Array in Premium area.

Then price may target the equal highs or bullish Liquidity Pools to sweep the buy-side liquidity and then reverses to down side after tapping the higher timeframe PD array.

So in bearish trend if price target the equal highs or previous highs you can anticipate it as liquidity sweep until the market structure is bearish.

What is ICT Liquidity Run?

An ICT liquidity run occurs when the price moves in the direction of the prevailing trend, targeting liquidity and continuing its movement.

For example, in a bullish market, the price may aim for a previous high, capture the liquidity there, and then continue rising to reach a new high.

Conversely, in a bearish market, the price may target a previous low, capture the liquidity, and then continue falling to reach a new low.

This phenomenon is called a liquidity run because the price captures liquidity and keeps moving without reversing direction.

How to Anticipate the Liquidity Run?

To anticipate the liquidity run you should know the higher timeframe market structure.

(I)

When the higher timeframe market structure is bullish and price has swept the liquidity at the lows (inducement), you can anticipate the price to move upwards, running above the previous high and setting a new high.

(II)

When the higher timeframe market structure is Bearish and price has swept the liquidity at the highs (inducement), you can anticipate the price to move downwards, running below the previous low and marking a new low.