A Session-Filtered Liquidity Sweep and Fair Value Gap Strategy
Summary
This strategy looks for a sequence of price action conditions around recent swing levels. Within configurable London or New York sessions, it identifies a bullish sweep when price trades below a prior pivot low and closes back above it, or a bearish sweep when price moves above a prior pivot high and closes below. The setup then seeks a large directional candle, a three-bar fair value gap, a market structure shift, and a break of structure. It waits for a gap retest and, by default, a rejection candle before considering an entry. An EMA trend filter can further restrict direction.
A weighted score assigns points to the sweep, displacement, gap, structure events, and retest; the default entry threshold is 85. Stops use the sweep level or current bar extreme with an ATR buffer, and targets use a configurable reward-to-risk multiple. The script permits one trade per detected setup and includes chart labels and a status dashboard. It is a rule-based implementation, but the document supplies no performance report or validation evidence. Session times, pivot detection, filter settings, execution assumptions, and risk parameters can materially affect results.
Key ideas
- The setup starts with a close back inside a recent pivot level after price sweeps beyond it.
- Directional displacement, a fair value gap, and structure breaks are required before an entry can qualify.
- Entries wait for a fair value gap retest and may require a rejection candle.
- A weighted score, session windows, and an EMA trend filter control signal qualification.
- Stops use an ATR buffer around the sweep or current extreme, while targets are set by a reward-to-risk multiple.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.