Asia Sweep

“Asia Sweep”

The “Asia Sweep” is a concept used in trading that focuses on liquidity manipulation during or after the Asian trading session. The chart highlights how price tends to consolidate during the Asian session, creating well-defined Asia Highs and Asia Lows. After this consolidation, price typically sweeps one of these liquidity levels (either the high or the low), before reversing direction and making a significant move.

Key Components of the Asia Sweep:

1. Asia High and Asia Low:
   • These levels are defined by the highest and lowest price during the Asian trading session.
   • They often act as liquidity pools where stop-loss orders or pending orders accumulate.
2. Sweep of Liquidity:
   • Price will often break out above the Asia High or below the Asia Low to “sweep” liquidity.
   • This move is typically a fakeout, where price quickly reverses after triggering stops.
3. Reversal and Expansion:
   • After the liquidity sweep, price reverses sharply in the opposite direction.
   • This reversal often leads to a significant trend or breakout.
4. Lower Timeframe Confirmation (LTF):
   • Traders look for smaller time frame patterns (e.g., break of structure or confirmation candles) to validate the entry after the sweep.

Trade Setup Idea:

1. Identify the Range:
   • Mark the Asia High and Asia Low based on the price action during the Asian trading session.
2. Wait for the Sweep:
   • Monitor for price to break above the Asia High or below the Asia Low.
   • The break should be sharp, suggesting a stop hunt or liquidity grab.
3. Look for Confirmation:
   • Use lower timeframes (e.g., 5M, 15M) to find a shift in market structure or reversal candlestick patterns.
   • For instance, if the Asia High is swept, look for a bearish engulfing pattern or lower-high formation to confirm the reversal.
4. Entry and Stop-Loss:
   • Enter the trade after confirmation.
   • Place the stop-loss just above the swing high/low created during the sweep.
5. Take-Profit Levels:
   • Target the opposite end of the range (e.g., if Asia High is swept, target Asia Low).
   • If price breaks the range convincingly, aim for extended targets using Fibonacci levels or measured moves.

Why Use the Asia Sweep?

The Asia Sweep strategy is popular among day traders and scalpers because it takes advantage of predictable liquidity behaviors during the transition from the Asian session to the London session. It’s highly effective when combined with strong risk management and confirmation signals.