Liquidity Sweep Reversal Strategy with Volume, Wick, and Confirmation Filters

Summary

This strategy is designed to trade reversals after price sweeps a recent swing high or low. Its visible settings allow longs after low sweeps and shorts after high sweeps, with swing detection based on pivot lookback, level age, and minimum spacing relative to ATR. Trade management settings define a stop beyond the sweep wick, a minimum stop distance, a reward-to-risk target, and an optional move to breakeven.

Optional filters require a volume spike, a rejection wick of a minimum size relative to the candle body, next-bar movement past the sweep candle midpoint, and trading within a session window. The script also specifies percent-of-equity sizing, commission, slippage, and chart displays for levels and trades. The supplied excerpt ends at the indicator section, so it does not show the signal calculations, full execution logic, backtest results, or market and timeframe settings. These visible parameters describe a design, not evidence of performance; actual results would depend on implementation, instrument, and execution conditions.

Key ideas

• The strategy aims to reverse after price moves beyond a recent swing level and rejects the move.
• It permits long entries after low sweeps and short entries after high sweeps.
• Stops are designed around the sweep wick, with configurable risk distance and reward-to-risk settings.
• Volume, wick shape, next-bar confirmation, and session timing can filter candidate trades.
• The excerpt omits the core signal calculations and reports no backtest results.

Tags

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