Liquidity Sweep Entries with EMA Trend and Williams %R Filters
Summary
This strategy combines recent swing sweeps with trend and momentum conditions to generate swing entries. For longs, price must sweep below recent lows and then close bullish above the sweep high, the chart-timeframe Hull Moving Average, and a rising 1-hour EMA. Williams %R relative to its EMA helps classify signals: a recent oversold reading supports the higher-probability mode, while a higher low supports the continuation mode. Short logic mirrors these conditions and can be enabled by changing the default long-only setting.
Stops are placed just beyond the recorded sweep extreme, with targets set from a configurable reward-to-risk multiple; the default is 5:1. The script also plots its averages and signals and can emit alert payloads. The document provides implementation details and author guidance about intended lower chart timeframes, but no backtest results or performance evidence. Its claimed trend alignment and risk ratio describe rules, not demonstrated profitability; results will depend on market, timeframe, and execution assumptions.
Key ideas
- A long setup requires a downside sweep followed by a bullish close above the sweep high and rising trend filters.
- Williams %R conditions distinguish entries after recent extremes from higher-low continuation entries.
- The strategy uses a 1-hour EMA alongside a chart-timeframe Hull Moving Average for trend confirmation.
- Stops use the sweep extreme, and the default profit target is five times the measured risk.
- Short entries are available only when the long-only mode is disabled.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.