Confluence Trading Strategy with Trend, Liquidity Sweeps, and Risk Controls

Summary

This strategy combines trend regime scoring, liquidity sweeps, Fibonacci retracement zones, and signal confluence to identify long and short setups. Its regime matrix uses fast, slow, and anchor moving averages, higher-timeframe alignment, slopes, ADX, and volatility compression or expansion. Liquidity conditions include sweeps of prior daily or weekly levels and confirmed swing structure, with optional displacement requirements. Entry scoring also incorporates normalized pressure, volume, momentum, and an OTE interaction.

Trade management uses equity-based risk sizing, ATR and structure-based stops, staged reward targets, break-even adjustments, trailing stops, and an optional time exit. Session filters can restrict entries to selected market windows. The script displays a dashboard of regime and signal states. The supplied excerpt omits much of the signal and order logic and gives no performance results, so the strategy’s effectiveness, execution assumptions, and robustness cannot be assessed from this document alone.

Key ideas

• The regime score combines local and higher-timeframe moving-average structure, slope, directional strength, and volatility expansion.
• Liquidity setups look for price to sweep prior daily or weekly highs or lows and reclaim those levels.
• Fibonacci retracement interaction, volume, momentum, pressure, and other signals contribute to entry confluence.
• Risk controls include structure-aware stops, multiple profit targets, trailing logic, and optional time-based exits.
• The excerpt provides no backtest evidence, and much of the entry and order logic is missing.

Tags

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