← Back to Intelligence
STRATEGY

Fractal Sweeps: When the Market Hunts Your Stop

~4 min readMonetum Intelligence Research

One of the most reliable patterns in liquid crypto markets is the liquidity sweep: price extends just beyond a technical level — a prior high, a swing low, a round number — triggering clustered stop orders, then reverses sharply. Retail traders call this a stop hunt. In structure-based trading, it is called a fractal sweep.

The Monetum Intelligence fractal scanner identifies these events in real time across BTC, ETH, SOL, and XRP on the 4-hour timeframe.

What Constitutes a Fractal Sweep

A fractal high is a candle with a higher high than the two candles before and after it — a local peak in price structure. A fractal low is the inverse. These levels attract stop orders: longs stop-out below fractal lows, shorts stop-out above fractal highs.

A sweep occurs when price pierces a fractal level intrabar and closes back on the opposite side within the same candle or the next. The pattern signals:

  • ◆A pool of liquidity has been consumed
  • ◆The order flow driving the sweep has been absorbed
  • ◆The market is likely to reverse toward the centre of the range or the next structural level

Why We Track It

The fractal sweep is not a trading signal by itself — it is a context signal. When the V8b system generates a directional signal and a recent fractal sweep exists at or near the entry level, conviction increases significantly. The sweep has cleared overhead (or underlying) liquidity, reducing the probability of an immediate re-test that would invalidate the setup.

Entering a signal without a preceding sweep at the relevant level carries additional risk — the liquidity pool still exists and may act as a magnet.

How to Read the Fractal Alerts

The fractal alert feed shows:

  • ◆Asset and direction — which fractal level was swept (high or low)
  • ◆Price level — the exact fractal level that was breached
  • ◆Timeframe — currently 4H for all assets
  • ◆Time elapsed — how recently the sweep occurred (recent sweeps carry more weight)

A sweep that occurred within the last 4–8 hours on the same asset as an active signal is the most actionable configuration. Sweeps older than 24 hours are noted for context but carry less weight.

Next Article
PROPRIETARY TOOLS
Our Fear & Greed Index: Eight Signals, One Number
→
← Back to Intelligence