NQ Counter-Trend Scalping with Mean-Reversion Signals

Summary

This NQ/MNQ strategy is presented as a counter-trend scalper intended to complement a separate trend-following system. Its stated signal families include fading overextension, delta divergence, liquidity-sweep traps, aggressive-flow fades, absorption at extremes, and volume-range retests. The visible configuration uses ADX and a minimum confidence score to gate entries, with ATR-based stop buffers and a capped profit target measured against the distance to the mean.

The excerpt also shows ATR, VWAP, moving averages, RSI, MFI, and a TTM Squeeze calculation, including a momentum zero-cross check. These components suggest a blend of price, volume, and momentum context for identifying reversals. However, the source ends partway through the indicator logic, so the full entry rules, confidence scoring, trade management, and actual backtest results cannot be assessed. The title labels it a backtest, but this excerpt provides no performance evidence; settings and signals would need independent validation, including costs and execution assumptions.

Key ideas

• The script is designed to fade potential extremes rather than follow the prevailing trend.
• It lists overextension, divergence, sweeps, aggressive flow, absorption, and volume-zone retests as configurable signal types.
• ADX and a minimum confidence score are intended to filter counter-trend entries.
• Stops use a buffer beyond an extreme, while targets are capped relative to the distance to the mean.
• The available excerpt is incomplete and provides no backtest performance results.

Tags

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