Stop runs, liquidity grabs and sweeps: anatomy

The typical pattern

1. Price approaches an obvious level (the high of the day).
2. Sweep: it breaks it by a few ticks, triggers the stops. Spike of aggressive volume in the direction of the break.
3. No continuation: liquidity is absorbed just beyond, the delta flips.
4. Rejection: back below the level. The breakout traders are trapped and have to cover: that is the fuel of the opposite move.

Tactic

Wait for the return into the range, plus the confirmation (absorption beyond the level, delta flip), before entering in the direction of the rejection. Stop just beyond the wick. Target: the opposite liquidity, often the other edge of the range, where the opposing stops are waiting.