Module 3 · The Core Setups
Setup 3 — The Liquidity Sweep Reversal
Trapping breakout traders at a level, then reversing.
In this lesson you'll
- Build the failed-auction / sweep setup
- Read the heatmap void and the absorbing turn
- Target the trapped traders' stops
When an obvious level (prior high/low, round number, naked level) gets swept to grab stops, then reverses — combining the footprint's failed auction with the heatmap's void.
- Context: an obvious level with clustered stops just beyond it (prior-day high/low, equal highs/lows, a round number).
- Confirmation: the heatmap shows liquidity pulled (a void) ahead of the spike; price punches through on sparse trade dots (no real participation); then big absorbing dots appear at the turn and the footprint shows a delta flip / failed auction.
- Trigger: the reversal back inside the level once the sweep fails.
Key takeaways
- Use at an obvious level with clustered stops just beyond it.
- Confirm: heatmap void + sparse dots through + absorbing dots + footprint delta flip at the turn.
- Enter on the reversal back inside; stop just beyond the sweep extreme.
- The trapped chasers' stops are your fuel and your target.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: Consuming liquidity describes a real break, not a sweep.
Why that's off: The reversal is the whole point of a sweep.
Why that's off: The void + sparse dots + reversal is the key distinction.
A sweep is preceded by liquidity being pulled (a void) and shows little real participation through it, then reverses on absorbing dots. A genuine break trades into and consumes liquidity.
Why that's off: The POC can be a target but isn't the trapped-stop fuel concept.
Why that's off: VWAP is a separate reference, not the trapped stops.
Why that's off: The open isn't where the swept stops cluster.
The sweep triggers clustered stops; those stop orders fuel the reversal, and the next cluster (e.g., trapped longs' stops on the other side) is a logical target.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.