ICT Setup Combining Liquidity Sweeps, Displacement, and Fair Value Gaps

Summary

The visible portion of this Pine strategy outlines an ICT-style setup built around liquidity sweeps of recent swing highs or lows during London or New York session windows. After a sweep, it tracks a limited setup period and looks for directional displacement, defined using candle body size relative to its recent average and a range threshold based on ATR. It then identifies a fair value gap when price leaves a gap across recent bars. Inputs include an EMA trend filter, swing and ATR lengths, a risk/reward setting, and optional rejection-candle and session filters.

The source ends partway through the market-structure logic, before entry rules, exits, scoring, or results are visible. The title’s “70% filter” claim therefore cannot be assessed from the supplied text, and no backtest evidence or asset/timeframe context is provided. The visible rules are a configurable pattern framework, not enough information to reproduce or evaluate a complete trading system. Session definitions, pivot confirmation timing, execution costs, and the missing remainder could materially affect signals and results.

Key ideas

• The visible setup looks for a sweep beyond a recent swing level that closes back across it.
• A directional displacement candle must meet body-size and ATR-based range conditions.
• The strategy then tracks a fair value gap for a limited number of bars.
• Session windows and an EMA-based trend filter are configurable inputs.
• The source is truncated before entries, exits, scoring, and performance evidence can be evaluated.

Tags

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