The Wicks Setup is a price action strategy built around the concept of liquidity, specifically, the idea that major price levels attract stops and orders that, once swept, create high-probability reversal opportunities. Developed by Matt from FX Replay, the strategy focuses on identifying moments when price reaches a significant level, sweeps liquidity in a clean and decisive manner, and then signals a change in trend direction on the lower timeframe. The goal is to enter at an optimal point after that signal, targeting the next major liquidity pool.
Rather than chasing price, this strategy requires patience and context. A valid setup only forms when multiple conditions align across both the higher and lower timeframe, from the presence of a major liquidity pool and a clean approach leg, to an SMT divergence and a confirmed Change in State. Missing any one of these parameters reduces the quality of the trade, and the emphasis is firmly on taking only A+ setups.
How the strategy works
Key definitions
Trade checklist
A valid setup requires all conditions from both the higher timeframe context and the lower timeframe entry model to be present simultaneously.
HTF ContextLTF Entry ModelHTF Level presentM/W FormationMajor Liquidity PoolSMT DivergenceBig Figure, 00s, 50s, 75sChange in State, CSDClean Leg into levelFair Value Gap, FVGLondon or NY Session
If any of the parameters are missing, the trade quality is reduced. Aim to only take A+ setups.
