Liquidity Sweep Reversals with Trend, Session, and Momentum Filters

Summary

The visible portion of this strategy looks for price to move beyond a recent range high or low and then close back inside, treating the move as a possible liquidity sweep. A sweep must also exceed an adjustable fraction of ATR. Candle rejection rules check wick size, candle direction, and close location. Optional filters use prior-day midpoint bias, fast and slow EMAs, RSI, ADX, and a New York session window. Entry frequency modes adjust the sweep threshold, wick requirement, and whether EMA slope confirmation is needed.

The source also defines configurable risk-reward, stop-lookback, and cooldown settings, but the document cuts off during the main buy-signal logic. It therefore does not show the full entry and exit rules or enough code to assess order handling. No backtest period or performance results are provided. The method is a configurable framework rather than evidence of a tested edge; its multiple optional filters and thresholds would need independent evaluation for false signals, sensitivity, and execution effects.

Key ideas

• A sweep is defined as a move beyond a recent high or low followed by a close back inside that level.
• The sweep must exceed an adjustable ATR-based threshold, with candle wicks and closes used to identify rejection.
• Optional filters include daily bias, EMA trend and slope, RSI, ADX, and a New York trading session.
• Entry modes alter the sweep threshold and candle requirements to change signal frequency.
• The source is truncated before the full signal and trade-management logic, and it reports no performance results.

Tags

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