The Elev8 Sweep Reversal Playbook
One of the core advantages of Elev8+ is the ability to trade after a liquidity sweep has already completed. Instead of guessing tops or bottoms, you wait for price to run a key level, harvest liquidity, reject back inside, and confirm with a reversal signal or LS label.
What Makes a Qualified Sweep?
A valid liquidity sweep occurs when:
- Price runs above a prior high or below a prior low
- Stop orders are triggered and volume increases at the extreme
- The candle closes back inside the prior range, instead of holding above or below the level
- Preferably printed at a major sweep level (PDH, Asia, London, Weekly, etc.)
Elev8+ identifies this behavior using two confirmation types: triangle reversal signals and LS premium filters.
Why We Trade After the Sweep
The goal is not to capture the emotional breakout move into the extreme. That is where stops accumulate and breakout traders get trapped.
By waiting for:
- The sweep
- Rejection wick
- Confirmed reversal (triangle or LS)
you enter only once the market has already shown institutional rejection. This dramatically improves risk/reward and consistency.
Step 1: Define Your Sweep Levels
Turn on Sweep Levels+ and choose only the levels you plan to monitor for that session:
- Prior day high/low
- Session highs and lows (Asia, London, NY)
- Weekly or monthly extremes if volatility is elevated
You do not need every level active. The chart is cleaner when you only focus on the few liquidity magnets that matter today.
Step 2: Wait for Price to Run the Level
Do not trade during the run. Price should move quickly into the level, triggering stops and breakout orders.
The run typically looks:
- Fast, emotional, and one-directional
- Breakout traders enter late
- Liquidity providers absorb into strength or weakness
No setup exists yet — you are simply watching the level get harvested.
Step 3: Confirm the Rejection
A sweep is not valid until rejection is confirmed. Confirmation occurs when the candle:
- Pierces the level
- Wicks outside the prior structure
- Closes back inside the previous range
This is where Elev8+ provides clarity:
- Triangle signal = raw sweep reversal
- LS label = premium sweep with added filtering
Both are valid — LS is simply more selective.
Step 4: Place the Stop Properly
Sweep reversals allow extremely precise stops. Your risk is defined by the wick that harvested liquidity.
For shorts after a top-side sweep:
- Stop goes above the wick extreme
For longs after a bottom-side sweep:
- Stop goes below the wick extreme
Wick extremes are rare to retest once absorption has occurred. This makes stop placement highly asymmetric.
Step 5: First Target — VWAP or Mid-Range
After a sweep, the first target is usually mean reversion:
- Back to VWAP
- Back to the range midpoint
These targets are reached frequently because:
- Liquidity providers unwind inventory after sweeps
- Market returns to fair value
Step 6: Extended Target — Opposite Range Boundary
If momentum continues after VWAP:
- Extend the target to the opposite side of the prior range
This is where the largest asymmetric gains occur, especially when:
- The sweep happened at a major level
- LS or DI Std Dev confirmed premium volatility
- Session timing aligns (London or NY)
Step 7: When to Stand Aside
Skip trades when:
- No level is present at the sweep
- Price is sweeping thin overnight structure with low volume
- No rejection wick prints
- Sweep forms inside consolidation without real extremes
High-quality sweeps are clean, emotional, and occur at meaningful liquidity magnets. Anything else is noise.
Optional Advanced Confirmation
Elev8 is powerful alone, but serious traders sometimes add:
- CVD divergence
- Volume absorption on Bookmap
- Liquidity shift into VWAP
- Session timing filters
These tools reduce false sweeps and increase conviction, especially at major HTF levels.
Summary
- Identify a major sweep level
- Wait for price to run the level aggressively
- Confirm rejection with wick and triangle/LS
- Place the stop beyond the wick extreme
- Target VWAP or range midpoint first
- Extend to opposite boundary if momentum continues
This playbook helps Elev8 users move away from emotional breakout trading and into structured, asymmetric sweep reversals with precise stops and consistent behavior.