Mapping Swing Structure and Liquidity Sweeps with ERL

Summary

The document describes a MetaTrader indicator that marks swing highs and lows, labels higher highs and lows or lower highs and lows, and projects those levels on a chart. Traders can use the labels to describe directional structure and observe when price crosses a prior swing level but closes back within the range. The indicator then marks that level as a sweep, which the document presents as a possible stop hunt or failed breakout that may precede a reversal.

Its settings control how many candles confirm a swing, how many past bars are scanned, the projected line length, and the appearance and placement of labels. The suggested workflow is to use the structure labels for directional bias and investigate possible entries on lower timeframes after a sweep. No backtest, performance evidence, or validation is provided, and a sweep is described as a potential reversal clue rather than a confirmed signal.

Key ideas

• The indicator identifies swing highs and lows using a configurable candle window.
• Higher highs and higher lows mark bullish structure, while lower highs and lower lows mark bearish structure.
• A level is marked as swept when price breaches it but closes back inside the prior range.
• The document suggests using structure for directional context and sweeps to prompt further setup analysis.
• No empirical performance evidence is provided.

Tags

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