Liquidity Sweep Reversal Entries with a Trading Session Filter

Summary

This price-action strategy looks for a break beyond a recent swing high or low followed by a close back inside the prior range. A sweep above the high followed by a close below it signals a possible short; a sweep below the low followed by a close above it signals a possible long. The described implementation examines the prior ten bars and can restrict signals to a UTC session from 13:00 to 20:00. It sizes entries at five percent of account equity and plots the swept reference levels and reversal signals.

The document provides Pine Script and published five-minute ETH/USDT futures backtest settings for about one month, but gives no performance metrics. Despite its multi-timeframe label, the code shown evaluates one chart timeframe, and the stated retest window is not used in the entry logic. There is no explicit stop-loss or take-profit rule. The author notes false reversals, parameter sensitivity, trend conditions, and slippage as risks, and suggests broader timeframe checks, volume confirmation, and defined exits. The description frames sweeps as institutional traps, but the code alone does not verify that market participants caused them.

Key ideas

• A sweep is identified when price exceeds a recent high or low and closes back inside that level.
• The reversal signal is filtered by an optional UTC session window.
• The supplied script uses five percent of equity per trade and plots signal levels.
• The shown implementation evaluates a single timeframe and omits explicit stop-loss and take-profit logic.
• Published backtest settings are provided, but no performance results are reported.

Tags

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