The Liquidity Sweep Strategy Using Forex Volume Profile & Stop Hunting Techniques

Last Updated on March 22, 2025 by Arif Chowdhury

Have you ever felt like the market is playing games with your trades?

You place a trade, and suddenly the price swings against you.

You wonder, “What’s going on?”

That’s where the Liquidity Sweep Strategy comes in, leveraging Forex volume profile and stop hunting techniques to navigate those tricky waters.

Let’s break it down.

Liquidity is crucial in the Forex market.

It’s what keeps the market moving and gives you the ability to enter and exit trades.

But here’s the kicker: Not all liquidity is created equal.

When major players—like banks and hedge funds—want to accumulate positions, they often use stop hunting techniques.

This means they’ll push prices to hit stop-loss orders, creating liquidity for them to fill their trades.

Here’s what you need to know:

Stop Hunting: This is when larger players push the price to trigger stops, creating liquidity.
Volume Profile: This tool shows the amount of trading activity at different price levels over a specific time period.

So, how does this all come together?

With the Liquidity Sweep Strategy, we’re essentially looking for areas where there’s a high probability of liquidity being swept.

Here’s how to approach it:

Identify Key Levels: Use volume profile to find areas where there’s significant trading activity.
Watch for Price Action: Look for sudden spikes or drops in price that might indicate stop hunting.
Confirm with Other Indicators: Use additional tools like moving averages or RSI to confirm your entry points.
Set Your Stops Wisely: Place your stop-loss orders just beyond significant liquidity zones to avoid getting caught in stop hunts.

The Forex market is influenced by various factors, including economic data and geopolitical events.

But one fact remains:

About 70% of retail traders lose money in Forex trading.

This strategy aims to flip that statistic by allowing you to trade with the big players rather than against them.

Speaking of trading smart, let’s talk about my 16 trading bots.

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Each bot is tailored for specific currency pairs like EUR/USD, GBP/USD, USD/CHF, and USD/JPY.

Here’s how they work:

Diversification: Each currency pair has 3-4 bots, minimizing correlated losses.
Long-Term Focus: They’re built to trade on H4 charts and aim for 200-350 pips, ensuring better performance over time.
Backtested Success: I’ve rigorously backtested these bots for the past 20 years, and they shine even under harsh market conditions.

And guess what?

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You just need to join through my affiliate link and deposit a minimum of $500 into your live account.

Finding the right broker is crucial for your trading success.

I’ve tested several brokers and can confidently recommend the best ones.

Using a reliable broker can significantly enhance your trading experience, especially when implementing strategies like the Liquidity Sweep.

Make sure to choose a broker that aligns with your trading style and offers competitive spreads.

You can find my top recommendations here: Best Forex Brokers.

Incorporating the Liquidity Sweep Strategy using Forex volume profile and stop hunting techniques can elevate your trading game.

Remember, trading isn’t just about luck; it’s about strategy, knowledge, and the right tools at your disposal.

With my trading bots and the right broker, you can better navigate the market and aim for consistent profitability.

So, are you ready to take your trading to the next level?

Let’s get started!