Liquidity is one of the most common concepts in modern price-action trading. Traders often watch obvious highs and lows because those areas can contain clusters of orders.
What is a liquidity sweep?
A liquidity sweep generally describes price trading through a visible high, low or other liquidity area before reacting. The move itself does not guarantee a reversal or continuation.
Why highs and lows matter
Previous highs and lows are easy for many market participants to identify. Stops, breakout orders and other orders can gather around them, making these areas useful context for a trader.
Confirmation still matters
A sweep should not automatically be treated as an entry signal. Traders often combine liquidity with market structure, higher-timeframe direction, volume or other confirmation before making a decision.
How NGF uses liquidity
Liquidity is one of several factors displayed across the NGF indicator suite. It is used as part of a broader decision-support framework rather than as a standalone promise that price must reverse.
Trading involves risk. Liquidity concepts and indicators cannot guarantee market direction or future results.