Five-Minute Liquidity Sweep Short with Fixed Stop and Target

Summary

This strategy is restricted to five-minute intraday charts and looks for a short setup around the running high of the day. The prior candle must be bullish and have reached the day’s high. The current candle must trade above that prior high and close below its open. If the strategy is flat and the calculated risk is positive, it enters short, places a stop at the current candle’s high, and sets a limit target below the entry based on the stated risk multiple.

The description calls the setup a 1:3 risk-reward strategy, but the supplied calculation sets the target distance to one times the entry-to-stop risk, despite a plot label that says 1:3. The post offers no backtest evidence, market or instrument specification, or execution assumptions. The rule therefore documents a candle pattern and order structure, not evidence that the setup performs as advertised; the target-multiple inconsistency should be resolved before interpreting results.

Key ideas

• The setup only evaluates signals on five-minute intraday bars.
• It requires a bullish prior candle at the running daily high, followed by a sweep above its high and a close below its open.
• The strategy enters only when flat and places a stop at the signal candle’s high.
• The target calculation uses one times the risk distance, conflicting with the stated 1:3 description and plot label.
• No performance evidence or instrument-specific assumptions are provided.

Tags

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