Liquidity Sweeps, Fair Value Gaps, and Market Structure Signals

Summary

This partial Pine Script outlines a strategy combining market structure, liquidity sweeps, fair value gaps, institutional zones, trend filtering, and premium or discount levels. Its configurable inputs include swing length, sweep lookback, minimum gap size relative to ATR, displacement threshold, and fast and slow exponential moving averages. Signal controls allow long or short trades and can require a confirmation break, while a one-trade-at-a-time option limits concurrent exposure.

Risk settings include swing-based stops or ATR-based stops, a reward target relative to risk, optional trailing stops, and moving the stop to breakeven after the trade reaches a specified multiple of initial risk. The visible excerpt ends during the swing calculations, so entry and exit rules, complete implementation details, and any backtest evidence are unavailable. The title references QQQ and NQ, but the excerpt does not establish the precise instruments or show performance results. The listed concepts should therefore be treated as a configurable strategy framework rather than evidence of effectiveness.

Key ideas

• The script combines market structure breaks and shifts with liquidity sweep and fair value gap concepts.
• ATR thresholds are used to filter gaps and identify displacement zones.
• Fast and slow exponential moving averages can provide a directional trend filter.
• Risk controls include swing or ATR stops, reward targets, optional trailing stops, and breakeven movement.
• The excerpt is incomplete and 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.