Five-Minute Daily-High Liquidity Sweep Short Setup

Summary

This strategy looks for a short entry on a five-minute chart after a specific sweep near the current day’s high. The preceding candle must be bullish and have reached the running daily high. The current candle must trade above that preceding high, then close below its open. When the conditions align and no position is open, the script enters short at the close and sets a stop at the signal candle’s high. The target is calculated from the entry-to-stop distance.

The document presents the rules as executable script logic and includes plotting for the daily high, stop, target, and signal. Despite the title and accompanying description claiming a 1:3 reward-to-risk ratio, the target calculation shown uses a distance equal to the risk distance, implying a 1:1 ratio. No backtest dates, performance statistics, or validation are provided. The setup is limited to five-minute intraday bars and depends on precise candle and daily-high conditions; costs, slippage, and the behavior across markets remain unassessed.

Key ideas

• The entry requires a bullish prior candle at the running daily high and a current candle that sweeps its high before closing below its open.
• The strategy only evaluates signals on five-minute intraday bars.
• The stop is placed at the signal candle’s high, and the target is derived from the entry-to-stop risk.
• The published target formula implies a 1:1 risk-to-reward distance despite the 1:3 title.
• The document provides no backtest evidence or performance results.

Tags

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