Liquidity Sweep, Structure Shift, and Fair Value Gap Entries

Summary

This strategy models a trade as a sequence: price sweeps a recognized liquidity level, market structure shifts, and price then returns to a fair value gap for entry. Candidate levels include prior day and week extremes, session highs and lows, equal highs or lows, and a midnight open. The script offers entry at either the gap edge or its midpoint, with configurable windows between the sweep, structure shift, and entry.

Filters and controls include a time-of-day killzone, manually entered news blackout periods, an ADX chop filter, cooldown after nearby opposing sweeps, higher-timeframe EMA bias, and optional correlated-market comparison. It also provides risk-based or fixed sizing, stop buffers, reward-to-risk targets, and a timeframe-dependent profile. The document describes extensive backtesting and display features but supplies no actual performance results. News windows are manual, liquidity and gap definitions are rule-based approximations, and the setup's effectiveness depends on market, timeframe, costs, and parameter choices; independent testing is necessary.

Key ideas

• A trade setup requires a liquidity sweep followed by a market-structure shift and a return to a fair value gap.
• Liquidity references include prior session and calendar-period extremes, equal highs or lows, and session levels.
• Entry can be placed at the fair value gap edge or midpoint, subject to timing and session filters.
• ADX, opposing-sweep cooldowns, higher-timeframe bias, and optional correlated-market comparison refine signals.
• The excerpt describes backtest controls but reports no measured strategy performance.

Tags

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