London Liquidity Sweep Breakout: True vs Fake London Move
If you trade the London session, you’ve probably lived the London liquidity sweep breakout trap: you mark the Asian high/low, price spikes through at the open, hits your stop, then reverses and runs without you. That first push isn’t always a tradeable move—it’s often a quick liquidity grab before direction is set.
This guide shows you how to tell a liquidity sweep from a true London breakout using simple visual clues. No coding, no data download—just session awareness you can use today.
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Why the London Session Creates the Liquidity Sweep Breakout Trap
European liquidity ramps sharply versus the quieter Asian hours. Spreads can tighten; average price range expands. Traders who box the Asian session often queue breakout orders just beyond the range. Larger participants know that inventory is sitting there. A quick push through the level can:
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Trigger breakout buys or sells.
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Sweep clustered stop losses from range traders.
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Provide liquidity for bigger positions.
When the push fails to hold, you get the signature London liquidity sweep breakout failure: a wick through the level, snap back inside, and (often) movement in the opposite direction.
Liquidity Sweep vs True London Breakout (Plain English)
Liquidity Sweep
A liquidity sweep is a fast move through an obvious level that fails to accept beyond it. Think: “grab and go.” Signs include:
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Long wick outside a clean high/low or session-box edge.
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Quick rejection; candle closes back inside or near the prior range.
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Follow-through in the opposite direction is common.
Also called a London stop hunt, liquidity grab, or London open sweep.
True Breakout
A true breakout accepts beyond the level and builds structure there. Look for:
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Multiple closes outside the range (not just wicks).
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Shallow pullbacks that respect the breakout line.
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Range expansion in the breakout direction.
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Confluence with higher-timeframe bias, news, or correlated markets.
Recognizing acceptance helps you avoid chasing a weak London liquidity sweep breakout move.
Spot a London Liquidity Sweep Breakout Before You Chase It
Use these three fast filters:
1. Close Location Test
Did the breakout candle actually close outside the level? No close = suspect. Many London liquidity sweep breakout traps print only a wick.
2. Follow-Through Window
Give price a short “acceptance window” (5–15 minutes on lower TFs; 1–2 candles on M15). If price can’t build structure beyond the level in that window, lean sweep.
3. Who’s Trapped?
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Tight Asian range + bullish backdrop → spike above highs that snaps back can trap breakout longs and fuel downside.
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Major news later in the day? Early London volatility may just be positioning noise, not a directional intent.
London Liquidity Sweep Patterns You’ll See Often
Frankfurt Fakeout
Pre-London (Frankfurt) push breaks the Asian edge, tags stops, reverses when full London volume arrives.
Asia Edge Probe
London barely trades past the Asian high/low, prints a sharp wick, closes back inside, then rotates toward the opposite boundary.
Double Sweep → Expansion
Both sides of the range get cleaned (upper then lower, or vice-versa). Once liquidity is collected, the real move develops.
News Drift Sweep
If a scheduled release is coming later, price may clear obvious stop pools first—creating room for a post-news move.
All of these sit under the London liquidity sweep breakout trap umbrella: the breakout triggers but does not hold.
When the Break Is Real (Spotting London Acceptance)
Not every early move is a trap. Sometimes you’ll see a sweep then acceptance and continuation in the original direction. Strength clues:
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Candle bodies stacking outside the level.
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Pullback holds the breakout line (support/resistance flip).
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Expansion lines up with related markets (EURUSD vs DXY, BTCUSD vs risk assets).
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Added momentum when the London–New York overlap begins.
That shift from sweep to acceptance can mark the real London session breakout move.
Quick Checklist (Copy Into Your Journal)
[ ] Mark Asian session high & low
[ ] Mark Frankfurt hour extremes (if different)
[ ] Note obvious stop pools (equal highs? round numbers?)
[ ] Wait for first break – wick or close?
[ ] Hold beyond level for >X minutes?
[ ] Rejected? Watch for move back inside & opposite-side cleanout
[ ] Accepted? Map next liquidity target (prior day H/L, session midpoint)
FAQ
Does the London liquidity sweep breakout idea apply to crypto too?
Yes. Crypto trades 24/7, but cross-market traders react around fiat session opens, so sweep-then-move behavior still shows up.
What timeframe is best to see a sweep?
M5–M15 usually highlights London liquidity sweeps clearly. Drill to M1 only if you need wick detail; judge acceptance on a higher TF.
Do I need volume data?
Helpful, not required. Wick vs close and post-break structure usually tell the story. Futures or major exchange volume can confirm a real London breakout.
Can I automate this?
You could try, but this article isn’t a coded system—it’s to help you avoid low-quality London liquidity sweep breakout entries and improve session read.
Disclaimer
Educational only. Not financial advice or a trade signal. Test any idea in demo before risking capital.
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