MNQ Liquidity Sweep Reversal Signals from Recent Extremes

Summary

This strategy looks for reversals after price crosses a recent extreme and closes back through the prior bar. It calculates the rolling highest high and lowest low over a 20-bar lookback. A short signal occurs when the current high exceeds the previous bar's rolling high and the close finishes below the prior low. A long signal occurs when the current low falls below the previous rolling low and the close finishes above the prior high. Orders use ten percent of equity by default.

The accompanying description frames these patterns as stop-liquidity sweeps followed by rejection, with a return toward an internal range or another liquidity area as the intended idea. However, the code does not define profit targets, stop-losses, or exits, and it does not encode equal-high or equal-low detection, structure-shift confirmation, or risk-to-reward rules mentioned in the prose. No performance results or validation are provided, so the signals should be treated as a hypothesis requiring testing and explicit risk controls.

Key ideas

• The strategy uses a 20-bar rolling high and low to define recent extremes.
• A short triggers after a new high sweep closes below the previous bar's low.
• A long triggers after a new low sweep closes above the previous bar's high.
• The default order size is ten percent of equity.
• The script has no explicit stop, target, exit, or backtest evidence.

Tags

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