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

Summary

This intraday strategy tracks the Asia session high and low, then watches for a sweep beyond either boundary during a defined London window. The first sweep sets a directional state. An entry requires a same-direction displacement candle whose body exceeds the 14-period ATR, a matching three-candle fair value gap, and alignment with a one-hour bias based on the close relative to a 20-period simple moving average. The rules permit at most one trade per London window. Stops use the prior bar’s low for longs or high for shorts; targets are set at a three-to-one reward-to-risk multiple. Quantity is calculated from one percent of strategy equity divided by the entry-to-stop distance.

The script specifies session times in the Pacific/Auckland timezone and presents a TradingView strategy implementation, but supplies no backtest period, trade statistics, or independent evidence of performance. The one-percent sizing formula does not account explicitly for fees, slippage, contract constraints, or gaps. Session interpretation and signal behavior also depend on chart timeframe and timezone handling, so those implementation details matter when evaluating the rules.

Key ideas

• The strategy records the Asia session range and looks for a boundary sweep during the London window.
• A sweep establishes direction, but entry also requires ATR-sized displacement, a matching fair value gap, and one-hour moving-average bias.
• The script allows one trade per London window and uses the prior bar’s extreme as the stop.
• Targets use a three-to-one reward-to-risk multiple, with quantity based on one percent of equity risk.
• No backtest results or cost-adjusted performance evidence are provided.

Tags

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