ICT Sweep, Displacement, and Fair Value Gap Retest Strategy

Summary

This strategy builds a directional setup from a swing-level liquidity sweep during the London or New York sessions. After price sweeps and closes back through a prior pivot, it looks for strong displacement, a fair value gap, and subsequent market-structure shift and break confirmation. An entry requires a retest of the gap with a rejection candle, alignment with both local EMA trend and a higher-timeframe EMA bias, and a sufficiently high setup score. The script permits one trade per detected sweep and places a stop beyond the sweep or current extreme with an ATR buffer; the target uses a configurable risk-reward multiple.

The source code defines the conditions and configurable parameters, but supplies no strategy report, market-specific evaluation, or evidence of profitability. Its pivot and structure definitions are rule-based approximations, and the session windows, timeframe, scoring threshold, costs, and risk settings can materially affect results. Backtesting and robustness checks would be needed before drawing conclusions.

Key ideas

• A setup begins when price briefly crosses a recent swing high or low and closes back inside that level during configured trading sessions.
• Displacement and a fair value gap are followed by market-structure shift and break conditions.
• Entries require a gap retest, rejection, local trend alignment, higher-timeframe bias, and a minimum composite score.
• Stops use the sweep level or current extreme with an ATR buffer, while targets apply a configurable risk-reward multiple.
• The code describes a rule set but provides no performance evidence or robustness evaluation.

Tags

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