Liquidity Curve Pattern
PO3/ICT-style pattern: a range is established, then price sweeps liquidity above or below the range before reversing. A smooth parabolic curve traces swing points toward the sweep and target.
Quick Answer
PO3/ICT-style pattern: a range is established, then price sweeps liquidity above or below the range before reversing. A smooth parabolic curve traces swing points toward the sweep and target.
What Is the Liquidity Curve Pattern?
The Liquidity Curve is a PO3 (Power of Three) and ICT-style pattern that identifies range → liquidity sweep → reversal. A consolidation range forms; then price sweeps stops above the range high (bearish setup) or below the range low (bullish setup) before reversing. The pattern is drawn as a smooth curve (e.g. Catmull-Rom spline) through swing highs or swing lows toward the sweep point, with a target at the opposite side of the range. Bullish: curve follows the top of price (swing highs) toward a sweep below the range low. Bearish: curve follows the underside (swing lows) toward a sweep above the range high. Confirmation comes when price closes back inside the range after the sweep.
How the Liquidity Curve Forms
- 1A consolidation range forms (e.g. 40+ bars) with a clear range high and range low
- 2Price sweeps beyond the range (above for bearish, below for bullish) within a short window
- 3Reversal: price closes back inside the range within a few bars
- 4Swing points (highs for bullish, lows for bearish) trace a curve toward the sweep
How to Confirm the Pattern
Price Target Calculation
Target is typically the opposite boundary of the range (e.g. after a sweep above, target the range low).
Best Timeframes for Liquidity Curve
How to Trade the Liquidity Curve
- →Identify PO3/ICT-style liquidity grabs and reversals
- →Trade the reversal after a sweep of range highs or lows
- →Use the curved path as a visual guide for structure
- →Combine with order blocks or BOS/CHoCH for confluence
Common Mistakes to Avoid
Detect Liquidity Curve Automatically
VaultCharts automatically detects Liquidity Curve patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.