Liquidity Sweep Reversals with Wick, Volume, and Confirmation Filters

Summary

This strategy tracks confirmed swing highs and lows as potential liquidity levels, discarding levels that are too close together or older than a configurable age. A high sweep occurs when price trades above a stored swing high and closes back below it; a low sweep reverses that pattern. Optional filters require a wick large relative to the candle body and volume above a multiple of its 20-period average. Entries can be restricted to a session window, and the script can wait one bar for price to continue past the sweep candle's midpoint before entering.

Stops are placed beyond the sweep wick using an ATR multiple, subject to a minimum risk distance, and targets are set using a configurable reward-to-risk ratio. The strategy can move stops to breakeven after a chosen fraction of the target distance. It includes chart zones and trade statistics, but the supplied material reports no independent results or validation. Pivot detection and confirmation introduce timing constraints, and session, filter, and execution settings may affect outcomes.

Key ideas

• Stored pivot highs and lows become candidate levels for detecting reversals after price sweeps through and closes back inside.
• Optional volume, wick-size, next-bar confirmation, and session filters constrain entries.
• Stops are placed beyond the sweep wick using ATR, with a minimum risk-distance check.
• Targets use a configurable reward-to-risk ratio, and stops may move to breakeven.
• The document reports no independent performance evidence, and configurable timing and filters may materially affect results.

Tags

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