London Session Asia-Range Sweeps with Displacement and Fair Value Gaps

Summary

This intraday strategy tracks the high and low of an Asia session, then looks for a sweep beyond one of those boundaries during a configured London window. A sweep sets a direction; entry requires a large directional candle whose body exceeds the 14-period ATR, a matching three-candle fair value gap, and agreement from a one-hour close relative to its 20-period simple moving average. The script resets its trade state at the start of each London window and permits at most one trade in that window.

Position size is calculated from a stated 1% equity risk and the distance to a stop based on the preceding candle's low or high. A configurable risk-to-reward multiple sets the profit target. The source provides rules and sizing logic, but no backtest results or evidence that the setup is profitable. Results may depend on the instrument, chart interval, session timezone handling, execution assumptions, and whether the chosen stop distance reflects actual risk.

Key ideas

• The system records the Asia session range and watches for a boundary sweep in the London window.
• A directional sweep must be followed by ATR-sized displacement and a corresponding fair value gap.
• A one-hour close relative to a 20-period simple moving average filters trade direction.
• Position size targets a stated fraction of equity risk, with stops tied to the prior candle's extreme.
• The rules are specified without reported testing results or execution-cost assumptions.

Tags

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