7.12 Strategy 12: The Asian Session Sweep (Liquidity Grab)

In Strategy 1, you learned how to trade the London Breakout. But the banks know that millions of retail traders use that exact strategy. So, how do the banks steal their money? They use a 'Stop Hunt', officially known in Smart Money Concepts as a Liquidity Grab. Welcome to Strategy 12: The Asian Session Sweep.

The Psychology of the Trap

Think about the Asian Consolidation Box from Strategy 1. Thousands of amateur traders put their 'Buy' orders right above the top of the box, and their 'Sell' Stop Losses right below it.

The banks need to buy massive amounts of currency. But to buy, they need someone to sell to them. So, right at the London Open, the banks intentionally push the price UP just enough to break the top of the Asian Box. This triggers all the amateur 'Buy' orders (giving the banks the liquidity they need). The moment the amateurs buy, the banks instantly smash the price downwards in the opposite direction. The amateurs are trapped, their Stop Losses are hit, and the banks walk away with the profit. We call this 'Sweeping the Highs'.

Step 1: Identifying the Target (Asian High/Low)

Timeframe: 15-Minute (15m) Chart.
The Setup: Exactly like Strategy 1, draw a box around the High and Low of the Asian Session (3:00 AM to 9:45 AM EAT).

Instead of waiting to trade the breakout, you are waiting for the breakout to fail.

Step 2: Execution (The Trap)

The Trigger: At 10:00 AM EAT, the price shoots out of the top of the box. But unlike Strategy 1, the 15-minute candle does not close outside. It aggressively rejects, leaving a massive wick stabbing through the top of the box, and the body of the candle closes back inside the box.

The Entry: The moment that candle closes back inside the box, the 'Sweep' is confirmed. The banks have stolen the liquidity and are heading the other way. You immediately click SELL.
Stop Loss: Place it safely above the massive rejection wick you just saw.
Take Profit: Target the absolute bottom of the Asian Box (because the banks are now going to target the liquidity sitting under the floor).

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