Liquidity-Sweep Signals with ATR Stops and Risk-Reward Targets

Summary

This indicator strategy treats a failed breakout beyond a recent swing high or low as a liquidity sweep. A move above the lookback high that closes back below it can signal a short; a move below the lookback low that closes back above it can signal a long. An optional reversal-candle condition can further qualify the signal. Optional EMA bias, minimum ATR volatility, volume confirmation, and cooldown filters can each reject a setup.

For an accepted signal, the indicator sets entry at the bar close and places a stop beyond the sweep wick by an ATR-based distance. It then projects three profit targets at configurable risk multiples and displays the latest plan on the chart. The document explains a ProRealTime port and notes that it omits the higher-timeframe filter, historical plans, and alert conditions, among other platform-specific features. It proposes backtesting the signal logic, but supplies no results demonstrating profitability. Sweep rules and filters are configurable hypotheses; their effectiveness, execution costs, and suitability across markets require independent testing.

Key ideas

• A close back inside a recent high or low after crossing it defines the proposed sweep signal.
• An optional reversal candle and filters for trend, volatility, volume, and signal spacing can qualify setups.
• The plan uses the signal close for entry, an ATR-based stop beyond the sweep wick, and three risk-multiple targets.
• The ProRealTime version retains the latest plan but omits some higher-timeframe, historical-plan, and alert features.
• The document recommends backtesting but provides no performance evidence.

Tags

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