Liquidity Sweep Reversals with Swing Levels, Confidence Scoring, and Risk Filters

Summary

This Pine strategy is designed to detect stop runs around recent swing highs and lows, then trade a reversal after price rejects the swept level. Its inputs show a framework for tracking swing zones, measuring sweep depth and prior touches, and assessing structure, volatility regime, post-sweep displacement, volume, and proximity to higher-timeframe zones. Optional filters include engulfing or displacement candles, volume spikes, and minimum reward-to-risk requirements.

The script also exposes position sizing and settings for fair-value-gap targets and exits on an opposing break of structure. A confidence score can be used to require a minimum setup quality before entry. However, the supplied document ends partway through the input definitions, so the actual signal conditions, scoring implementation, exit logic, and any test results are unavailable. The listed settings describe an intended approach rather than enough evidence to assess its performance or robustness.

Key ideas

• The strategy aims to enter reversals after price sweeps a tracked swing level and then rejects it.
• Its inputs propose scoring setups by sweep depth, touches, structure, volatility, displacement, volume, and higher-timeframe context.
• Optional filters include candle confirmation, volume, higher-timeframe proximity, and minimum reward-to-risk.
• The excerpt is incomplete, so entry rules, exits, and performance cannot be verified.

Tags

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