Liquidity sweep: definition
A sweep and a breakout look alike when they happen and only differ afterwards. That is why Meridian Engine readings state in advance which close would make the difference.
Updated 2026-10-02
This page explains a term of the method and how to check it against public data. It does not say what to do in any market.
Definition
Price trades briefly beyond a cluster of prior highs or lows; what counts is whether it returns.
Price goes beyond a liquidity pool and comes back. If it closes beyond the level and stays there, it is no longer a sweep but a breakout.
How it is measured
A reading states how far price went beyond the level, in multiples of ATR, and whether the bar closed back on the other side. A shallow sweep followed by a fast return and a deep one followed by a lower low tell two different stories.
Example from the gold reading
On 23 September price swept the pool of equal lows at 4,291.3 with an excursion of 0.87 times ATR, and made a lower low instead of rejecting the level. One of the two invalidation conditions written at issue was a sweep with a return: a sweep of 4,273.8 followed by an hourly close back above 4,304.9. Price traded through 4,273.8 within two hours but did not close back above 4,304.9 by 21:30 UTC: the condition was not met.
Read: the reading XAUUSD, 24 September 2026 · all readings on XAUUSD
How to check it yourself
Mark the level of the pool, then look at the bar that goes beyond it: how far it went and where it closed. The return counts on the close of the hourly bar, in UTC, not on the high or low touched during the bar.
Related terms
Band · Liquidity pool · Displacement · Drift · Shelf
Published readings
Three complete analyses, with the conditions written in advance and the outcome checked against public data:
BTCUSD, 9 August 2026 · XAUUSD, 24 September 2026 · BTCUSD, 1 October 2026 (no trade)
The next Meridian Engine readings are published with their conditions written in advance, and the outcome checked afterwards. Joining the waitlist gets you the code for a free first analysis straight away.
Get the code for your first analysis →General information only. Not an instruction to buy or sell.