Clean vs. Dirty Liquidity: How Smart Money Sets the Trap Not all liquidity is created equal. In Smart Money Concepts, we distinguish between clean liquidity (well-formed, obvious to retail) and dirty liquidity (hidden, manipulated, or layered). Clean liquidity: Equal highs/lows, trendline touches, double tops Dirty liquidity: Inside wicks, layered behind OBs, below consolidation zones Clean liquidity is where retail stops sit. Dirty liquidity is where Smart Money enters. Smart traders: Identify where clean liquidity will be swept (external range) Then look one level deeper — behind that sweep lies the OB or FVG for re-entry They don’t trade the sweep, they trade the return after the sweep This method avoids false breakouts and aligns with institutional footprints. The real money lies not in the sweep… but just behind the deception. Know the difference, and you’ll stop being the prey.