--- title: 'Stop Hunt / Liquidity Sweep — A Simple and Effective Reversal Pattern' source: 'https://youtube.com/watch?v=8Ge3pxJzYv0' video_id: '8Ge3pxJzYv0' date: 2026-07-31 duration_sec: 428 --- # Stop Hunt / Liquidity Sweep — A Simple and Effective Reversal Pattern > Source: [Stop Hunt / Liquidity Sweep — A Simple and Effective Reversal Pattern](https://youtube.com/watch?v=8Ge3pxJzYv0) ## Summary This video breaks down the stop hunt (liquidity sweep) pattern — a reversal setup that forms when price removes key liquidity before changing direction. It explains the criteria, confirmation signals, and a clear entry, stop-loss, and take-profit framework for trading it. ### Key Points - **Definition of Stop Hunt** [00:02] — A stop hunt (also called VIP liquidity or liquidity grab) is a reversal formation that occurs after the removal of key liquidity. - **Trigger Areas** [00:31] — The pattern can form at the 50% retracement area or at fair value gaps (FVG), most often from higher timeframes like the 4-hour and above. - **Key Formation Criteria** [00:46] — The key criterion is the removal of liquidity by a single swing, usually at a significant extreme, the highest liquidity pool, equal highs/lows, or a 50% FVG test. - **Reaction After Liquidity Removal** [02:06] — After the sweep, a large imbalance should appear in the opposite direction — price should jump back up for longs or roll down faster for shorts, showing sufficient demand or supply. - **Failing Gap as Reliability Factor** [03:32] — The setup is often accompanied by the formation of a failing gap in the direction of the impulse movement, which serves as a strong reliability factor. - **Structure Break by Body** [03:46] — A structure break is more reliable when it happens by the candle body (consolidation) rather than by the shadow, because a shadow close signals weakness and possible another breakdown. - **Where Stop Hunts Form** [04:30] — Stop hunts most often form at price extremes after removing a key high/low, or in the correction phase during a retest of a gap — the 50% area is the level that gets swept. - **Setup Confirmation** [05:26] — The setup is only formed after the reaction to the liquidity sweep occurs; you can anticipate it in advance but must wait for confirmation. - **Entry and Stop-Loss** [05:40] — Entry is usually on a retest of a newly formed FVG after the liquidity sweep and structure break. Stop-loss goes beyond the extreme point of the candle that removed liquidity. - **Take-Profit Placement** [06:23] — Take-profit is set according to previously determined targets: liquidity zones or untested fair value gaps. - **Key Practical Task** [06:50] — Your task is to mark key levels in advance and be ready to act quickly, because the stop hunt is a fast-forming setup. ## Transcript by the way, it is this guy who most often reverses trends, reverses reverses trends, reverses market phases and ends that very correction. This is a good old stop hunt, also known as VIP liquidity. And liquidity grab, you can see it in different sources . It's essentially the same thing. What is this ? This is a reversal formation after the removal of key liquidity. This also sometimes happens without withdrawing liquidity, by the way . And inside 50% as a trigger area, and areas of firewall gaps, most often of a higher timeframe, that is, for example, 50% of a four-hour firewall gap as a factor in completing the correction of the as a factor in completing the correction of the test of the last aa area of ​​imbalance and continuing to work along the trend. The key criteria for formation is the removal of liquidity by a single swing. Most often , I repeat, this is either a significant extreme for the price or the highest liquidity floor. This can be in the form of liquidity floor. This can be in the form of equals, a or, a, equal highs, equals, a or, a, equal highs, equal lows, or a 50% fair value gap test. And here too there is a footnote, most often of a higher time frame. That is, most often of a higher time frame. That is, the priority will be, and, FVG, I probably won’t write it, it will be clumsy, favolupa, and, from the four-hour clumsy, favolupa, and, from the four-hour timeframe and above. And what happens after this liquidity surge? Firstly, it is worth paying attention to the very Firstly, it is worth paying attention to the very nature of the withdrawal of liquidity. And the key, by the way, is already laid down here in the footnote of CWP liquidity. Because, if you look at it, a swee is the shadow of a candle, that is, it is an impulse absorption. But since you can observe this on different timeframes, the most important thing will be the nature of the most important thing will be the nature of the price reaction after the withdrawal. That is, after removing the key swing or testing the 50% imbalance area, a large amount of imbalance should come in the opposite direction. If we're talking about price action, direction. If we're talking about price action, that is, a candlestick chart, then there's a moment, and after the withdrawal, we should jump back up, or if we're talking about a short, then, of course, we should roll back down even faster than we got there, because this indicates that there was sufficient demand or supply in this area. If we are talking about a long stop-loss, then, of course, the demand that led to the imbalance was towards purchases. Yes, and we should see this clearly on the graph. Friends, an important point. We have a free Telegram channel where we publish educational content on SmartMoney trading every day. These materials are available only in our Telegram channel. Here are some tips and life hacks that you won't find on YouTube. Here we regularly publish content on trading psychology and show how to correctly open profitable trades. We periodically publish lists of promising coins for trading and provide tips on where to enter a trade and where to lock in profits. If you want to make trading a source of steady income, then subscribe to our Telegram channel. The link to the channel is now on the screen, as well as in the description below this video. Subscribe and let's trade together. Most often it is accompanied by the formation of a failing gap in the direction of the impulse movement. Да, как на данном примере. This is a very good criterion and very good criterion and reliability factor, and the formation of that very stop hunt or, simply put, reversal setup, right? Слом структуры. It is worth noting that a breakdown in the structure can, of course, be internal or external, but what is more important is that a breakdown in the structure will be more reliable precisely by the body of the candle, that is, by consolidation, as in this example, than when the price closes, let's say, here with a shadow, because this is a sign of weakness and another breakdown is possible. Therefore, we are interested in the moment of consolidation of the formation of the value cap as a sign of the existing imbalance towards the opposite side after the excess liquidity or key level. Ah, and this suggests key level. Ah, and this suggests that the market is ready to turn around and a high-probability setup has formed, which we can, uh, monetize with the highest mathematical expectation. Of course, it is worth making a footnote on the context in which the stopkhan is formed . If we talk about the most common . If we talk about the most common occurrence of a stop hunt, then a stop hunt is most often formed at price extremes, that is, for example, after removing a that is, for example, after removing a key maximum or minimum. That is, a stop loss, uh, is formed where either a previous, uh, price extreme is present, or a newly formed extreme is formed, for example, after updating the maximums, yes, and as I said earlier, exactly the same thing can said earlier, exactly the same thing can happen in the, uh, correction phase during a testing gap. And the 50% area will be for you, and, in fact, it will be exactly the level that the price sweeps. and from whom one should expect such a reaction. And the setup is formed only after we received that very reaction. That is, we can assume its formation in advance, but it is worth waiting for its confirmation. Как входить? And entry is most often made on the test of a newly formed currency, which is formed after a liquidity swing and a breakdown of the structure. Stop-loss can be confidently placed after, or rather, beyond, the candlestick's extreme point, which removed liquidity and from which the current reaction began, creating an imbalance. Very reaction began, creating an imbalance. Very often, on different timeframes, you will see exactly the same picture, but without the candlestick removal from the candlestick shadow. In fact, this further enhances your attraction, because the moment of the impulse exit is exactly what is needed for a quality stop hunt to form. Take profit, of course, is set according to the targets that were previously determined, the targets that were previously determined, according to liquidity zones or, aka, fair value, which has not been tested before. We talked about how some significant liquidity is being removed, and subsequently we see an impulse subsequently we see an impulse reaction. Your task is to note that very important liquidity and wait for the reaction that will be formed. Stopkhan is in the moment, and when it has already been formed, then most often a decision needs to be made. This is a fairly fast reversal setup in itself . It is quickly forming and most often you will need to be in a position to monetize it. Therefore, your task is to mark key levels and be able to, in principle, determine them in order to observe its formation.