PDH / PDL Liquidity Sweep
Every prior-day high and low is a shelf of resting orders: breakout buy stops above yesterday's high, sell stops below its low. Smart-money teaching treats those as liquidity to be taken, not levels to break and hold. The PDH/PDL sweep waits for price to run one, fail, and reverse, and on the Nasdaq one of those levels gets taken almost every session.
The setup treats the previous day's high (PDH) and low (PDL) as buy-side and sell-side liquidity, with the midpoint as equilibrium. A sweep is a false break: price wicks beyond PDH or PDL and closes back inside yesterday's range rather than holding beyond it. That failed break is the trigger. You wait for a lower-timeframe structure shift back through the level, enter on the retrace into the fair-value gap it leaves, stop beyond the swept wick, and target equilibrium first, then the opposite prior-day extreme.
How to trade it
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See what you get with ProWhen it fails
The setup needs a sweep that fails, not a level that breaks and runs. On a trend day the prior-day level breaks and holds, and fading it is standing in front of the move. A wide prior day is the warning: after a 2%+ range a level still gets taken 81% of the time, but more of those are real breaks than clean sweeps.
A sweep can reverse, fill your entry, and then break the level for real. The stop beyond the swept wick caps it, and the requirement for a structure shift keeps you from entering on the spike itself. It is a discretionary read, and sometimes the break is genuine.
Related strategies
You know the setup. Here is when it pays.
Market Edge tells you when a setup is worth trading and when it isn’t. Built on five years of real market history, it measures how any setup actually behaved, by day of the week, by time of day, by the state of the market, and shows the conditions where it paid and the ones where it didn’t. Same setup, very different odds depending on when you take it.
90% is the headline. The trade lives underneath it, in the conditions, so you take the version with the edge and skip the one that looks identical but isn’t.
