Part 6 · Liquidity

Sweeps and inducement

A sweep is a touch with a name — and the close still decides it.

Define a liquidity sweep precisely — a trade beyond an obvious high or low and a close back inside, on a named timeframe — and tell it from a break by the close, not the wick. Keep what follows a sweep out of its definition, recognise inducement as a label that is usually given after the move, and write the one condition, in advance, that would make a minor swing count.

5 chapters · 6 quiz questions · 11 terms · included with a plan

Otus, on this module

Here is the whole of this module in one line: a sweep is the candle module's touch, beyond the previous module's stops. The rest is keeping it that small. Every video that makes a sweep sound like more — a signal, a trap, a turn — has quietly added the next few bars to the definition.

What you do in it

The chapters

Each module ends with you doing what it taught — a written answer Otus reads, and a quiz.

  1. 01 · Read

    The sweep, and the close that decides it

    Through the obvious price, back inside by the close — and nothing after it.

  2. 02 · Watch

    Watch: The Liquidity Sweep

    One minute, then the step ticks itself.

  3. 03 · Read

    Inducement, and the label given afterwards

    A minor swing that invites early orders — and why it is almost always named late.

  4. 04 · Watch

    Watch: The Inducement

    One minute, then the step ticks itself.

  5. 05 · Write

    In your own words

    Two sentences. Otus reads them.

  6. 06 · Quiz

    Six questions

    A wrong answer still pays. It costs the combo, not the XP.

Vocabulary

11 terms this module defines

The same definitions Otus uses in the lessons. All of them are in the trading glossary.

Liquidity sweep
A bar that trades beyond an obvious high or low, through where stops plausibly rest, and closes back inside it on a named timeframe. The levels module's stop run, under another name.
Sweep versus break
Both trade through the level and trigger the same stops. The sweep closes back inside; the break closes beyond. One close decides it, and nothing before the close can.
Swept pattern line
A bar that trades through a pattern's confirming line — a neckline, a range edge — and closes back inside. The pattern has not completed; the line, where stops plausibly gathered, was swept. Not the same as busted, which needs a completion first.
Grab, raid, run
Liquidity grab, raid and stop run are largely other names for a sweep. Different words do not make different events; check each against the same close rule.
Unfinished sweep
A bar wicking through a level before it has closed. It is not yet a sweep or a break, and naming it early is naming a close that does not exist.
Outcome in the definition
Folding what happened afterwards into an event's name — "a sweep is when price takes the lows and reverses". It makes the term impossible to be wrong, and useless for the same reason.
Mechanics, not motive
A chart can show that stops were plausibly triggered. It cannot show who pushed price there or whether anyone meant to. "Hunt" and "trap" are stories about intent.
Inducement
A minor swing that is said to invite early orders, which price then trades through before turning — at a larger level in some versions, short of the obvious swing beyond it in others. As usually used, it is named only after that happens.
Minor swing
A swing high or low too small to be the leg's main swing point on the stated timeframe, but visible on a lower one. Legs usually contain several.
After-the-fact label
A name that the following bars decide. It can describe the past neatly and cannot be applied to the bar that is forming now.
Pre-written rule
A definition written before the move — which swing, which timeframe, which band — so that the label can be counted afterwards instead of chosen.

Finishing it pays 150 XP and 3 keys on the game board, on top of what each chapter earns. XP measures what you learned — never what you earned. How levels work.

Education only. Nothing here is a recommendation to buy or sell anything; the school teaches reading charts, never predictions.

Otus

Start with lesson one.

The first modules, Otus as your tutor and the game board are free. No card needed.