Liquidity Sweep vs Liquidity Run — ICT Smart Money Liquidity Concepts + Free PDF

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A liquidity sweep is a price movement that captures liquidity and then reverses direction. A liquidity run is a price movement that captures liquidity and then continues in the same direction. Both are core ICT concepts and both depend on the higher-timeframe market structure to read correctly.

In this guide I walk you through the difference between an ICT liquidity sweep and a liquidity run with detailed real market examples. With thorough study and dedicated market practice, you will be able to distinguish these two like a seasoned trader.

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

Now let us start with the liquidity sweep.

What is an ICT Liquidity Sweep? (Meaning)

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. The “meaning” of a sweep is therefore: take the liquidity, then reverse.

Buy-Side Liquidity Sweep vs Sell-Side Liquidity Sweep

A liquidity sweep is named after the liquidity it captures.

• Buy-side liquidity sweep — price runs above relative equal highs or a prior swing high, capturing the buy stops parked above (and the breakout-buyer entries that get triggered there), then reverses to the downside.
• Sell-side liquidity sweep — price runs below relative equal lows or a prior swing low, capturing the sell stops parked below (and the breakout-seller entries that get triggered there), then reverses to the upside.

The “side” simply tells you which stop pool was taken. The reversal that follows is what defines it as a sweep rather than a run.

How to Anticipate a Liquidity Sweep

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

(I) Bullish higher-timeframe — sell-side sweep into discount

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

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

So in a bullish trend, if price targets the equal lows or previous lows, you can anticipate it as a liquidity sweep — provided the market structure remains bullish.

(II) Bearish higher-timeframe — buy-side sweep into premium

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

Then price may target the equal highs or bullish liquidity pools to sweep the buy-side liquidity, and then reverse to the downside after tapping the higher-timeframe PD array.

So in a bearish trend, if price targets the equal highs or previous highs, you can anticipate it as a liquidity sweep — provided the market structure remains bearish.

What is an ICT Liquidity Run?

An ICT liquidity run occurs when price moves in the direction of the prevailing trend, captures liquidity at the next swing, and continues its movement.

For example, in a bullish market, 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, 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 price captures liquidity and keeps moving without reversing direction.

How to Anticipate a Liquidity Run

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

(I) Bullish higher-timeframe — run above the prior high

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

(II) Bearish higher-timeframe — run below the prior low

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

Liquidity Sweep vs Liquidity Run — Side-by-Side

The two patterns look identical at the moment liquidity is taken. The difference is what happens next.

• Liquidity sweep — price takes the stops and immediately reverses. The reversal usually starts with a Market Structure Shift on the lower timeframe, followed by a return into the PD array on the opposite side.
• Liquidity run — price takes the stops and continues in the same direction. The continuation usually shows displacement away from the swept level with no return to the prior PD array.

A practical rule I use: if the higher-timeframe direction agrees with the side that just got swept, expect a run; if it disagrees, expect a sweep.

Step-by-Step Trade Flow Around a Liquidity Sweep

This is the exact sequence I run when I am setting up a trade around a liquidity sweep.

1. Read the higher-timeframe bias. Use the daily and the H4 to set bullish, bearish or neutral.
2. Mark the liquidity above and below. Equal highs/lows, prior session highs/lows, prior day highs/lows.
3. Mark the PD array. Identify the higher-timeframe order block, fair value gap or breaker that price is drawn to.
4. Wait for the sweep. Price takes out the equal level — the wick prints through, the close prints back inside.
5. Drop to the lower timeframe. 5-minute or 1-minute for the trigger.
6. Wait for an MSS. Lower-timeframe market structure shift confirms intent.
7. Enter on the retest. Into the order block, FVG or mean threshold left behind by displacement.
8. Set the stop. A few pips beyond the swept level so a wick re-test does not stop you out.
9. Take profit at the next pool. Opposite-side liquidity, the next external pool or the next PD array.

Best Markets for Trading Liquidity Sweeps

Liquidity sweeps and runs are visible on every market that the ICT methodology is applied to.

• NQ (NASDAQ futures) and ES (S&P 500 futures) — relative equal highs/lows print constantly during the New York AM session, making sweep setups very repeatable.
• GBP/USD and EUR/USD — Asian range highs and lows are the most common sweep target during the London open.
• XAU/USD (Gold) — sweeps around US economic releases at 08:30 AM ET deliver some of the cleanest reversals on the chart.

For traders in the United States who follow the CFTC FIFO and no-hedge rules, liquidity sweep setups on NQ and ES futures (CME Group) are the most natural fit. The 09:50 NY-AM macro window is a particularly strong place to look for sweeps because the algorithmic delivery is concentrated inside that 20-minute window.

Common Mistakes Around Liquidity Sweeps and Runs

These are the recurring mistakes I see among traders who first start trading these concepts.

1. Confusing a sweep with a run. If the higher-timeframe direction agrees with the side that was just swept, the move is most likely a run — not a setup for a reversal.
2. Entering on the wick. The wick that takes the liquidity is not the entry. The entry is the retest of the PD array after the close-back-inside.
3. Stop too tight. A stop parked exactly at the swept level often gets hunted again on the second test. Leave a small buffer.
4. Skipping the MSS. Without a lower-timeframe market structure shift, the “sweep” is just a wick — not yet a tradeable reversal.
5. Trading sweeps against the bias. A sweep against the higher-timeframe direction often turns into a run rather than a clean reversal.
6. Forgetting the inducement. The first liquidity grab in a session is often inducement before the real move. Treat the very first pop as suspect until structure confirms.

ICT Liquidity Sweep and Liquidity Run PDF Download

You can download below ICT liquidity sweep and liquidity run in PDF for free. This PDF is sponsored by ICTPDF.COM.

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FAQs about ICT Liquidity Sweep and Liquidity Run

Brief answers to the questions readers ask most often about these concepts.

What does liquidity sweep mean in ICT?

A liquidity sweep means price runs above an equal high or below an equal low, captures the stop liquidity parked at that level and then reverses in the opposite direction.

What is a liquidity run in ICT?

A liquidity run is when price captures liquidity at a prior swing and then continues in the same direction — taking out the level and pushing on to a new swing in the trend direction.

What is the difference between a liquidity sweep and a liquidity run?

A sweep takes liquidity and reverses. A run takes liquidity and continues. The higher-timeframe bias is the cleanest way to tell which is which before the move resolves.

What is buy-side liquidity?

Buy-side liquidity is the cluster of buy stops parked above relative equal highs or a prior swing high. When price runs above and captures it, the move is called a buy-side sweep or buy-side run depending on what happens next.

What is sell-side liquidity?

Sell-side liquidity is the cluster of sell stops parked below relative equal lows or a prior swing low. When price runs below and captures it, the move is called a sell-side sweep or sell-side run depending on what happens next.

Where is the entry on a liquidity sweep trade?

The entry is on the retest of the PD array (order block, fair value gap or breaker) left behind after the sweep, typically after a Market Structure Shift on the lower timeframe.

Where do I place the stop loss?

A few pips beyond the swept level — above the swept high for shorts, below the swept low for longs.

What timeframe is best for liquidity sweep setups?

Use the daily and H4 for bias, the 15-minute for context and the 5-minute or 1-minute for the entry trigger.

Does the liquidity sweep work on indices and gold?

Yes — NQ, ES and XAU/USD print very clean sweep setups, especially during the New York AM session and the 09:50 macro window.

What is inducement in this context?

Inducement is a deliberate liquidity grab designed to trap traders before the real move. The first liquidity sweep of a session is often inducement, and the second move is the real direction.

Can the same level be both a sweep and a run?

Yes — the same swept level becomes a sweep if price reverses afterwards or a run if price continues. The classification only resolves after the close that follows the sweep prints.