Liquidity-Sweep Entries with Trend Filtering and Risk-Reward Exits

Summary

This script defines a price-action strategy around recent swing highs and lows. It records pivot points using configurable left and right lookbacks, then treats a move beyond a level that closes back inside it as a liquidity sweep. Long signals require a bullish candle and a close above a configurable long-term exponential average; short signals require a bearish candle and a close below that average. The strategy enters on a qualifying sweep and can close an opposing position when a reversal signal appears.

For each entry, the stop is placed just beyond the sweep candle’s wick using a configurable buffer, and the profit target is calculated as a multiple of the entry-to-stop risk. The script draws chart boxes for entry, stop, and target zones. It provides no backtest results, market specification, or evidence that the setup is profitable. Pivot confirmation depends on bars to the right of a candidate swing, and the supplied excerpt ends before the complete short-side execution logic, so implementation details and performance cannot be fully assessed.

Key ideas

• Recent pivot lows and highs define support and resistance levels used to detect sweeps.
• A sweep signal requires price to cross a level intrabar and close back beyond it in the rejection direction.
• A long-term exponential moving average filters long and short entries by trend direction.
• Stops sit beyond the signal wick, while targets use a configurable multiple of the trade’s initial risk.
• The document supplies no performance results or tested market context.

Tags

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