Liquidity Sweep and Reclaim Entries with Candle Quality Filters
Summary
This framework stores recent pivot highs and lows as liquidity levels, then looks for price to sweep through a level and reclaim it. Entry confirmation can be limited to a configurable number of bars after the sweep, and filters assess wick size, body size, candle range, direction, and whether price breaks the sweep candle’s midpoint. An optional EMA filter adds local trend direction. Pip presets adapt level and distance calculations for forex pairs, gold, and indices or CFDs.
The script includes signal labels, sweep guides, a quality score, and an optional internal trade projection with fixed pip-based targets and stops. Its notes say signals are confirmed at bar close and that a stop takes priority if stop and target are both reached on the same bar. The projection is described as a chart review aid rather than an execution engine. Although the panel can display trade counts, win rate, net pips, and drawdown, the supplied document contains no actual results or validation, and its thresholds may need instrument-specific calibration.
Key ideas
- Recent pivot highs and lows serve as candidate liquidity levels.
- A signal requires a sweep and reclaim, followed by confirmation within a configurable window.
- Wick, body, range, candle direction, midpoint, and optional EMA filters qualify setups.
- An optional simulation projects fixed pip-based stops and targets and prioritizes stops on same-bar conflicts.
- Displayed performance measures do not establish strategy validity without reported results and independent testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.