(KLS): Key Liquidity Sweep 🧵 A concept I made combining @Moneytaur_ logic with smart money market structure principles. This specific educational piece is part of Dune Capital, but since there is no other resources, I'm deciding to publicize this section/concept for all to learn. “Whales like to take profit, where they have taken profit before” A Key Liquidity Sweep (KLS) occurs when price makes a sharp move to take out a significant high or low inside a mitigated key liquidity level, before reversing. These sweeps often mark the beginning of major reversals, particularly macro double tops and double bottoms. Unlike simple swing failure patterns (SFPs) from ICT concepts, which can sometimes be misleading if no real liquidity was taken, a true KLS requires that liquidity has actually been swept, meaning not retail stop orders, but institutional resting orders at that level that are unfilled. SFPs, on the other hand, are often just temporary manipulations, quick stop hunts followed by a retrace back into a key level before the trend continues, not a reversal. SFPs mean nothing, if there is no liquidity to be swept. A KLS is not a trap, it’s a purposeful move, engineered by market makers to refill remaining orders left behind at the key swing point. The more powerful the liquidity level that gets taken (for example, a optimal reversal level), the more powerful the KLS is likely to be and occur. These are the moments when major trend reversals often begin, marking macro double tops and bottoms. But identifying a true KLS goes beyond just spotting a reversal at a key level. The reversal must leave behind a structural footprint, either a break of structure (BOS) on the same timeframe, or at the very least, a meaningful market structure shift (MSS) on a slightly lower timeframe (ex: 12H BOS confirming a HTF reversal from that key liquidity level). Without that structural confirmation, what looks like a reversal may just be a temporary pullback before price continues in its original direction. Also study how much liquidity was taken during the original test of the key level: zoom into lower timeframes to inspect candle bodies, did they close within confirming mitigation of the level? How deep into the level do body closes go? These determine how much liquidity was taken from the reversal & how much potential institutional orders are remaining at the swing. If little to no lower TF bodies confirm the level, or less than 35% of the key level was taken, it’s likely a re-test of the level and not a KLS. Remember, the liquidity is within the swing, as it took it from the liquidity level. If that is not the case and there is still liquidity left within the key level to be taken, market makers are likely sending price to re-test the liquidity level or much lower to create a fresh new range. This is my own optimized version of ICT’s SFP I have created, after 3+ years of using this concept. A concept that forecasts future double bottoms and double tops before they occur, when identified correctly. Allowing you to buy/sell before powerful reversals.