Combining Order Blocks, Fair Value Gaps, and Liquidity Sweeps

Summary

This strategy framework combines market structure with liquidity concepts. Its inputs specify swing detection, a backward search for the last opposite-colored candle as a candidate order block, optional fair value gap confluence after a break of structure, and a displacement requirement. It can also filter trades using a higher-timeframe moving average and track liquidity pools for sweep and retest setups.

Risk controls are configurable: stops can use an order block, ATR, or a percentage, while targets can use a risk multiple or a nearby liquidity pool. The script also exposes retest timeouts, confirmation patterns, and a breakeven option. The supplied excerpt ends during the position-sizing inputs, so it does not include enough implementation to verify the full entry logic, exits, or results. These settings describe a configurable trading concept, not evidence that the strategy is profitable.

Key ideas

• The framework searches back for a candidate order block rather than assuming it is the immediately preceding candle.
• Break-of-structure signals can require displacement and optional fair value gap confirmation.
• Liquidity sweeps may be followed by a timed retest and configurable confirmation pattern.
• Stop and target methods include order-block, ATR, percentage, risk-multiple, and liquidity-pool choices.
• The excerpt is incomplete and includes no reported performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.