H3 Candle Liquidity Sweeps with CHoCH Entries and Risk-Reward Exits

Summary

This strategy tracks the current and previous three-hour candle ranges, even when run on another chart timeframe. If the current H3 range exceeds the previous candle’s high, it sets a short bias; if it falls below the prior low, it sets a long bias. A trade then requires a change of character (CHoCH): a close crossing the latest confirmed swing high for a long or swing low for a short. The script resets its one-entry limit each New York day and allows at most one trade per day.

Stops are placed at the current H3 candle’s low for longs and high for shorts. A configurable risk-reward multiple determines the target, with defaults of a one-unit swing length, a 1:1 ratio, and one contract. The script provides no backtest results, asset specification, or discussion of fees, slippage, and execution. Its logic also relies on intrabar H3 extremes as they develop and on pivot swings that require confirmation, so signal timing and live behavior warrant careful examination before drawing conclusions.

Key ideas

• A sweep above the previous H3 high arms a short setup, while a sweep below its low arms a long setup.
• A confirmed swing break and close across the swing level provides the CHoCH entry trigger.
• The current H3 candle’s opposite extreme sets the stop, and a configurable risk-reward multiple sets the target.
• The script limits entries to one per New York day and provides no evidence of strategy performance.

Tags

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