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Lesson 03R-003Cheat sheetLiquidity sweep

Sweep vs Breakout

Both moves trade through a level. A breakout closes its body beyond the level and holds: the market accepts the new price. A sweep only pushes a wick through and closes back inside: the market rejects it.

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Sweep vs Breakout cheat sheet — page 1
Sweep vs Breakout cheat sheet — page 2

Lesson notes

The rules

  1. Wait for the candle to close. Mid-candle, a breakout and a sweep look exactly the same.
  2. Breakout: the body closes beyond the level, and a retest of the level holds.
  3. Sweep: the wick trades through, the body closes back inside the range.
  4. Sweeps at obvious liquidity (old highs, equal highs, session highs) carry the most weight.
  5. After a sweep, the opposite side of the range becomes the natural target.
  6. If the next candle closes back beyond the swept level, the sweep failed: get out.

How to mark it

  1. Mark the level: a clear high or low with liquidity behind it.
  2. Watch the candle that trades through it and wait for its close.
  3. Body beyond the level: treat it as a breakout and look for a holding retest.
  4. Wick beyond, body back inside: treat it as a sweep.
  5. For a sweep, enter on the close, stop beyond the wick, target the other side.

The 1:3 trade

Entry on the close of the sweep candle. Stop above the sweep wick. Target the range low. Reward is exactly three times the risk.

Before you enter

  • The level is obvious liquidity (high, equal highs, session high)
  • The wick trades through the level
  • The body closes back inside the range
  • Stop beyond the wick, not at the level itself
  • Target is the opposite side of the range with at least 1:2

Common mistakes

  • Entering before the candle has closed
  • Calling a breakout retest a sweep
  • Stop placed exactly at the level instead of beyond the wick
  • Fading every breakout without a close back inside
  • Holding after price closes back beyond the swept level

Key terms

  • Breakout: body close beyond a level that then holds
  • Sweep: wick through a level, body closes back inside
  • Acceptance: price closes and stays beyond the level
  • Rejection: price trades beyond the level but cannot close there
  • Turtle soup: trading against a failed breakout of a high or low
  • R:R: reward divided by risk; 1:3 means 3R for 1R risked
Same push, two outcomes. Body closes beyond and holds: breakout. Only the wick gets through: sweep. The close is the tell.