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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

  1. 1A consolidation range forms (e.g. 40+ bars) with a clear range high and range low
  2. 2Price sweeps beyond the range (above for bearish, below for bullish) within a short window
  3. 3Reversal: price closes back inside the range within a few bars
  4. 4Swing points (highs for bullish, lows for bearish) trace a curve toward the sweep

How to Confirm the Pattern

✓Sweep beyond range high or low (liquidity grab)
✓Close back inside the range within about 8 bars
✓At least two swing points form the curve
✓Follow-through in the reversal direction

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

1H4HDaily

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

✕Treating any wick beyond the range as a valid sweep (need reversal close)
✕Ignoring range quality (clear high/low)
✕Entering before confirmation of reversal back inside range
✕Using on very short or choppy ranges

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.

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