Liquidity Sweep and Fair Value Gap Retest Strategy with Trend Filters

Summary

This strategy combines swing-based liquidity sweeps with a market structure shift (MSS) and a fair value gap (FVG) retest. A bullish setup begins when price wicks below a recent pivot low, closes back above it, and forms a rejection candle; the bearish setup mirrors this around a pivot high. After price closes through the opposing swing, the strategy identifies a qualifying three-candle gap and waits for price to revisit it before entering.

Entries also require alignment with a 200-period EMA trend, ADX above a threshold, and a configured trading session. The stop is placed at the sweep extreme, with a configurable risk/reward target for a partial exit; the remaining position moves its stop to break even and can close on an opposing sweep or EMA crossing. The script supplies configurable inputs, chart annotations, alerts, and a signal-quality display, but the document gives no performance results. Its behavior depends on pivot confirmation, session settings, and the script’s definitions of rejection, structure shift, and gap mitigation.

Key ideas

• A sweep requires price to cross a recent swing level and close back through it with a rejection-shaped candle.
• An MSS confirmation occurs when price closes beyond the opposing recent pivot after a sweep.
• The strategy enters on a qualifying FVG retest when trend, ADX, and session filters agree.
• The sweep extreme defines the initial stop, while a partial target and runner exits manage the position.

Tags

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