Dynamic Liquidity Sweep Detection with Swing Levels and Candle Validation
Summary
This article explains a single-timeframe MetaTrader indicator that tracks buy-side and sell-side liquidity around swing highs and lows. It frames sweeps as moves through likely order clusters followed by a reclaim, then translates that idea into rules for identifying swing points and monitoring how price interacts with them.
The proposed detector accepts either a rejection wick that meets a minimum wick-ratio threshold or a two-candle pattern in which a breach is followed by an engulfing recovery candle. It records prior sweeps and structural violations so a level is processed once and invalidated after price breaches it. Swing references are refreshed as market structure develops, and calculations are intended to run on completed candles.
The article describes the design and says the indicator compiles, but offers no quantitative performance results or comparative testing. Liquidity and institutional order-flow explanations are presented as Smart Money Concepts, not independently established evidence. The rules are therefore a technical-analysis framework whose signals may need instrument- and timeframe-specific evaluation.
Key ideas
- Swing highs and lows serve as reference levels for potential buy-side and sell-side liquidity.
- A sweep can be recognized by a rejecting wick or a breach followed by an engulfing recovery candle.
- Wick-ratio validation is used to filter weak rejection signals.
- Tracking processed and violated levels prevents repeat signals and stale liquidity references.
- The method is described as an indicator design, without measured evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.