MNQ Liquidity Sweeps with Lookback High and Low Reversals

Summary

This strategy looks for price to breach a recent range extreme and then close back through the prior bar, treating that move as a liquidity sweep followed by rejection. It uses a 20-bar lookback: a low below the previous lookback low followed by a close above the prior high signals a long; a high above the previous lookback high followed by a close below the prior low signals a short. The script sets position sizing to 10% of equity.

The accompanying explanation frames these entries as reversals after stop-loss liquidity is taken, with a return toward the range or another liquidity area as the intended idea. The code does not specify profit targets, stop-losses, or other exit rules, and the document gives no market, timeframe, or backtest performance evidence. As a result, the entry pattern is clear, but its risk controls and empirical effectiveness cannot be assessed from the material provided.

Key ideas

• The strategy uses a 20-bar range to identify recent highs and lows.
• A sweep followed by a close beyond the previous bar's opposite extreme triggers a reversal entry.
• The source sets position sizing to 10% of equity.
• The script does not define profit targets or stop-loss exits.
• No backtest results or timeframe details are provided.

Tags

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