Liquidity Sweep Entries with Higher-Timeframe Trend and ATR Exits

Summary

This strategy combines recent high or low breaks with a higher-timeframe trend filter. It proposes using a 5-minute chart, checking sweeps against the previous 20 bars, and using a 4-hour trend assessment to select direction: low sweeps for longs when the higher-timeframe bias is up, and high sweeps for shorts when it is down. ATR over 14 periods sets stop and target distances through adjustable multipliers.

The document describes the rules and includes Pine Script source plus published backtest settings for ETH_USDT futures over a stated date range at a daily period. It does not report performance results, so claims of high win rates or consistent profitability are not supported by evidence here. The trend calculation and stop/target formulas in the source also merit scrutiny: the trend test compares the higher-timeframe high with a rolling low, while exits are derived from the sweep bar's low or high. The text itself flags false breaks, trend lag, parameter sensitivity, and overtrading as limitations.

Key ideas

• The strategy treats breaks of the previous 20-bar high or low as liquidity sweep signals.
• A 4-hour trend filter determines whether low sweeps can trigger longs or high sweeps can trigger shorts.
• ATR over 14 periods scales stop and target distances through user-set multipliers.
• The document supplies source rules and backtest settings but no reported performance statistics.
• False breaks, delayed trend readings, and excessive signals are identified as risks.

Tags

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