Liquidity Sweep Explained | Market Structure & Fair Value GapGOLD (US$/OZ)TVC:GOLDDAVID_PRO_TRADERLiquidity is one of the key concepts used in price-action and market-structure analysis. A liquidity sweep occurs when price temporarily moves beyond a previous swing high or swing low, where stop orders and pending liquidity may be concentrated, before potentially moving back into the prior range. In this educational example, price demonstrates both buy-side and sell-side liquidity sweeps. These areas can help traders understand where price may be searching for available liquidity and how market participants can react after those levels are reached. The chart also highlights a Fair Value Gap (FVG) that forms following an impulsive price movement. FVGs are commonly studied as potential areas of imbalance where price may later revisit, although a revisit or reaction is never guaranteed. Key Concepts • Buy-side liquidity: Liquidity that may exist above previous highs. • Sell-side liquidity: Liquidity that may exist below previous lows. • Liquidity sweep: A temporary move through a significant high or low. • Market structure: Helps provide context for whether price may continue or reverse. • Fair Value Gap: A potential price imbalance created during a strong move. • Confirmation: A sweep should not be treated as a standalone trading signal; additional price-action confirmation can improve analysis. The main objective is to understand how price interacts with important liquidity zones, rather than assuming that every sweep will result in an immediate reversal. Market conditions can change quickly, and the same setup can produce different outcomes depending on volatility, timeframe, and overall structure. This chart is presented for educational purposes to help traders develop a better understanding of liquidity concepts and market behavior. It is not intended to predict future price movements or guarantee any particular trading outcome. Educational analysis only. Not financial advice. No trade outcome is guaranteed. Always conduct your own research, use appropriate risk management, and never risk more than you can afford to lose.