Liquidity sweep versus signal

The idea

Price can move through a visible high or low and then return into the range. That is observable; who caused it is usually uncertain.

Try the scenario

Price dips below a prior low, then recovers above it.

Check your understanding

What can you establish from candles alone?

• A specific institution’s intent
• The excursion and recovery, not the actor’s identity
• Guaranteed buying tomorrow

Think through the example before checking your answer in the game. Verified player accounts can save lesson mastery and earn knowledge XP.