Liquidity Grab
A quick move to take out stops before reversing direction.
Full Definition
A liquidity grab is a rapid price movement that sweeps through an area of accumulated orders (liquidity) before sharply reversing. This is similar to a stop hunt but emphasizes the speed and intent of the move. Liquidity grabs often appear as long wicks or spikes on candlestick charts and can signal potential reversal points when combined with other confluences.
Example
During the London session open, GBP/USD spikes 30 pips above the Asian session high, triggering buy stops, then immediately reverses and drops 100 pips. The long upper wick shows where liquidity was grabbed.
Related Terms
Liquidity Pool
Areas where stop losses and pending orders cluster, creating tradable liquidity.
Stop Hunt
Price movement that triggers clusters of stop losses before reversing.
Wick / Shadow
The thin lines above or below a candlestick body showing price rejection.
Candlestick
A chart type showing open, high, low, and close prices.
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