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Not All Wicks Are Liquidity Sweeps | ICT/SMC | Liquidity Grab & Liquidity Sweep In ICT/SMC, one of the biggest mistakes is looking at every wick as a liquidity sweep or liquidity grab. A wick is simply a price reaction. Its meaning depends on where it forms, what liquidity is present, and what price does afterward. 🔹 Liquidity Sweep A liquidity sweep happens when price reaches and trades through a meaningful liquidity pool. Examples: Previous Day High/Low — PDH/PDL Previous Week High/Low — PWH/PWL Equal Highs / Equal Lows Clear Swing Highs / Swing Lows Session Highs / Lows Internal or External Liquidity The important part is not simply the wick. You want to understand what liquidity was taken and what happens after it. A sweep can be followed by: Liquidity - Displacement - MSS/CISD - Entry 🔹 Liquidity Grab A liquidity grab is generally used to describe price quickly taking liquidity and then reacting away from that area. For example: Equal Highs - Price trades above them - Sellers enter/price rejects - Bearish displacement The wick itself isn't the setup. The raid of liquidity + subsequent price delivery is what makes the move meaningful. 🔹 Liquidity Sweep ≠ Any Wick This is extremely important. ❌ Random wick in the middle of a range ❌ Wick with no obvious liquidity ❌ Wick created by normal volatility ❌ Wick that doesn't lead to meaningful displacement These should not automatically be labelled as liquidity sweeps. Instead, look for: Liquidity - Raid - Reaction - Displacement - Confirmation 🔹 Internal vs External Liquidity Liquidity can exist at different levels. External Range Liquidity (ERL): Major swing highs/lows PDH/PDL PWH/PWL Range highs/lows Internal Range Liquidity (IRL): FVGs Short-term highs/lows Internal price structures Understanding IRL - ERL and ERL - IRL can help build the market narrative rather than blindly trading every wick. 🔥 The Main Lesson Don't trade the wick. Trade the story behind the wick. Ask yourself:  What liquidity was there? Why would price want to reach it? What happened after it was taken? Did price show displacement and change in delivery? A wick without context is just a wick. Liquidity + Location + Reaction + Displacement = a much stronger ICT/SMC narrative. #ICT #ICTTrading #SMC #SmartMoneyConcepts #Liquidity
Not All Wicks Are Liquidity Sweeps | ICT/SMC | Liquidity Grab & Liquidity Sweep In ICT/SMC, one of the biggest mistakes is looking at every wick as a liquidity sweep or liquidity grab. A wick is simply a price reaction. Its meaning depends on where it forms, what liquidity is present, and what price does afterward. 🔹 Liquidity Sweep A liquidity sweep happens when price reaches and trades through a meaningful liquidity pool. Examples: Previous Day High/Low — PDH/PDL Previous Week High/Low — PWH/PWL Equal Highs / Equal Lows Clear Swing Highs / Swing Lows Session Highs / Lows Internal or External Liquidity The important part is not simply the wick. You want to understand what liquidity was taken and what happens after it. A sweep can be followed by: Liquidity - Displacement - MSS/CISD - Entry 🔹 Liquidity Grab A liquidity grab is generally used to describe price quickly taking liquidity and then reacting away from that area. For example: Equal Highs - Price trades above them - Sellers enter/price rejects - Bearish displacement The wick itself isn't the setup. The raid of liquidity + subsequent price delivery is what makes the move meaningful. 🔹 Liquidity Sweep ≠ Any Wick This is extremely important. ❌ Random wick in the middle of a range ❌ Wick with no obvious liquidity ❌ Wick created by normal volatility ❌ Wick that doesn't lead to meaningful displacement These should not automatically be labelled as liquidity sweeps. Instead, look for: Liquidity - Raid - Reaction - Displacement - Confirmation 🔹 Internal vs External Liquidity Liquidity can exist at different levels. External Range Liquidity (ERL): Major swing highs/lows PDH/PDL PWH/PWL Range highs/lows Internal Range Liquidity (IRL): FVGs Short-term highs/lows Internal price structures Understanding IRL - ERL and ERL - IRL can help build the market narrative rather than blindly trading every wick. 🔥 The Main Lesson Don't trade the wick. Trade the story behind the wick. Ask yourself: What liquidity was there? Why would price want to reach it? What happened after it was taken? Did price show displacement and change in delivery? A wick without context is just a wick. Liquidity + Location + Reaction + Displacement = a much stronger ICT/SMC narrative. #ICT #ICTTrading #SMC #SmartMoneyConcepts #Liquidity

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