Multi-Confirmation Liquidity Sweep and Fair Value Gap Setup

Summary

This strategy builds a directional setup after price sweeps a recent confirmed swing level and closes back inside it during a London or New York session window. It then tracks a sequence of possible confirmation signals: a large displacement candle, a fair value gap, a market-structure shift, a break of structure, and a retest with a rejection candle. An EMA trend filter can further restrict entries, and the setup expires after a configurable number of bars.

A weighted score assigns points to setup components, while entry rules also explicitly require a retest, structure shift, break of structure, trend alignment when enabled, and rejection when enabled. Stops are placed beyond the sweep extreme with an ATR buffer, and targets use a configurable reward-to-risk multiple; the code permits one trade per tracked setup. The script provides no backtest statistics or evidence for the title’s implied win rate. It is a rule-based example whose results depend on instrument, timeframe, session definitions, and execution assumptions.

Key ideas

• A swing-level sweep that closes back inside starts a time-limited directional setup.
• The strategy tracks displacement, fair value gaps, structure shifts, breaks, and retests as confirmations.
• Session, EMA trend, and rejection-candle filters can restrict entries.
• The weighted score is paired with explicit required conditions, including a retest and structure confirmation.
• Stops use the sweep extreme plus an ATR buffer, while targets use a configurable reward-to-risk multiple.
• No performance evidence is provided for the model’s win-rate implication.

Tags

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