Liquidity Sweep Reversals with Swing Levels and Structure-Based Exits

Summary

This strategy seeks reversals after price moves beyond tracked swing highs or lows and then rejects the level. It records pivot levels and their touches, measures sweep depth relative to ATR, and can score signals using touch count, market structure, volatility regime, post-sweep displacement, volume, and proximity to higher-timeframe swings. Optional entry filters include engulfing candles, displacement, breaking the sweep candle, volume spikes, and higher-timeframe proximity.

Trade management uses stops buffered beyond the sweep, with ATR regime adjustments and a maximum stop distance. Targets can reference opposing swings or fair value gap zones; the script also includes partial exits, structural trailing, an ATR backstop, opposing break-of-structure exits, and a time-based exit. Most filters are disabled by default, and the minimum confidence setting starts at zero. The code includes a tiered win-rate display, but the supplied document gives no test results or evidence that the scoring predicts profitability. Pivot confirmation, parameter choices, market conditions, and trading costs may affect outcomes.

Key ideas

• The entry concept is a move through a tracked swing level followed by rejection back from that level.
• ATR-normalized sweep depth, prior touches, structure, displacement, volume, and higher-timeframe proximity contribute to a confidence score.
• Optional candle, volume, and higher-timeframe filters can restrict entries.
• Stops and targets use swing structure, ATR adjustments, fair value gaps, and opposing levels.
• The script displays win rates by confidence tier but supplies no evidence that the method is profitable.

Tags

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