Only information that existed before the excursion qualifies.
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Read the excursion. Score the close, not the story.
Work through 10 fixed chart cases. Choose the prior high or low, classify the wick and completed close, define failure, then decide whether target room permits a long, a short or no trade before later candles appear.
prior high or low → fixed before arrivalUse a level that existed before the latest excursion. Do not redraw it around the outcome.
wick + completed close → reclaim, acceptance or unresolvedThe wick proves where price traded. The close decides which written rule, if any, completed.
invalidation → beyond required structureA reclaim normally depends on its excursion holding. A valid observation can still have no valid order.
next obstacle → enough R or passDo not shrink the stop or ignore nearby structure simply to make the displayed reward ratio work.
Equal lows are swept, reclaimed and retested
Two completed reactions formed around 100.00 before the latest move. The method requires a close at least 0.10 above that reference; a retest is optional but must remain above the sweep low.
Bullish sweep + optional retest
Compare its high or low with the reference you choose.
Apply the written reclaim or acceptance buffer.
A retest matters only when the written method says it does.
Read the exact OHLC values
| Candle | Open | High | Low | Close |
|---|---|---|---|---|
| 1 | 101.15 | 101.35 | 100.62 | 100.78 |
| 2 | 100.78 | 101.05 | 99.98 | 100.45 |
| 3 | 100.45 | 101.20 | 100.32 | 101.02 |
| 4 | 101.02 | 101.18 | 100.01 | 100.38 |
| 5 | 100.38 | 100.92 | 100.22 | 100.72 |
| 6 | 100.72 | 100.84 | 100.15 | 100.30 |
| 7 | 100.30 | 100.54 | 99.62 | 100.27 |
| 8 | 100.27 | 100.63 | 100.04 | 100.51 |
Keep the vocabulary flexible and the rule exact.
What is a liquidity sweep in forex trading?
Traders often use liquidity sweep, stop run or false break for price moving beyond a prior high or low and then returning. The terms and confirmation rules vary. In this lab, the exact prior reference, wick excursion and completed-close buffer are written before each case is judged.
Does every wick through a prior high or low count as a sweep?
No. A wick proves price traded beyond a reference, but the completed close may show a reclaim, acceptance beyond the level or an unresolved result. The method must define those outcomes before later candles are known.
What is the difference between a sweep and a breakout?
This lab calls a move a reclaim when price trades beyond the reference and completes back through the required buffer. It calls a move acceptance when the completed close clears the opposite buffer and any required retest holds. These are testable definitions, not universal market terminology.
Where does invalidation go after a liquidity sweep?
For a reclaim example, structural invalidation normally sits beyond the excursion the setup expects to remain the failed break. If the method requires a retest, that structure may also matter. The exact buffer, spread and execution treatment must be defined separately.
Why can a correct sweep observation still be a no-trade?
The observation and trade decision are separate. A reclaim can be clear while target room, confirmation, event, spread or portfolio rules block an order. Two cases in this lab deliberately show target-room vetoes.
How is the liquidity-sweep lab scored?
Each case awards process points for the prior reference, completed-close classification, structural invalidation and target-room decision. The later profit, loss or no-trade outcome never adds or removes points.