Liquidity Grab
Detect when price takes liquidity above or below a key level and then rejects.
The Liquidity Grab block detects moments when price briefly pushes past a key level — taking out stop losses and pending orders — then reverses sharply. This is a core Smart Money concept: institutions often push price into areas of liquidity to fill large orders before the real move begins.
Why It Matters
Liquidity grabs often mark the end of a move and the beginning of a reversal. Recognizing them helps you avoid getting stopped out at the worst moment, and instead use these events as potential entry signals for high-probability trades.
How to Use It
- 1Drag the Liquidity Grab block onto your canvas
- 2Set the direction — bullish grab (below a level) or bearish grab (above a level)
- 3Configure the level source and filters
- 4Connect it to a Logic or Entry block
Settings Explained
Direction — Whether to look for bullish liquidity grabs (price dips below a level then recovers) or bearish grabs (price spikes above a level then drops). Bullish grabs are potential buy signals. Bearish grabs are potential sell signals.
Level Source — Where the key level comes from. This could be a recent swing high/low, a session high/low, or another reference point. The level defines where liquidity is expected to sit.
Body Filter — Controls how much of the candle body must reject from the level. A strong rejection (long wick, small body) suggests more conviction in the reversal.
Sessions — Limits detection to specific trading sessions (London, New York, Asian). Liquidity grabs during major sessions tend to be more significant because institutional activity is highest.
Candle Direction Routing — Routes the signal based on whether the grab candle closes bullish or bearish, allowing your strategy to respond differently to each scenario.
Example Use Case
You build a reversal strategy that watches for bullish liquidity grabs during the London session. When price sweeps below a recent swing low and rejects, the strategy enters a long position, expecting the 'smart money' move to push price back up.
Liquidity grabs are most powerful when they happen at significant levels — like daily highs/lows or session extremes. Combine with session filtering for higher-quality signals.
Not every liquidity grab leads to a reversal. Always pair this block with risk management to protect against cases where the move continues past the level.
