Scoring ICT-Style Sweep, Displacement, and Retest Setups

Summary

This strategy builds a directional setup from a sequence of price-action conditions. During configured London or New York sessions, it flags a sweep when price pierces a prior swing and closes back across it. It then tracks displacement, a fair value gap, market structure shift, and break of structure. A potential entry requires a retest of the gap, a directional rejection candle when enabled, and alignment with an optional EMA trend filter. A weighted checklist score must also meet a user-set threshold.

Entries use a stop beyond the sweep or current extreme with an ATR buffer, and a profit target derived from a configurable risk-reward multiple. The setup expires after a configurable number of bars, and the script allows one trade per detected setup. The document provides implementation details and defaults, but no backtest results or evidence supporting the score threshold or claimed win rate. Session definitions, pivot confirmation, and price-action rules can affect signals, so the model requires independent testing across markets and settings.

Key ideas

• The setup begins with a sweep of a recent pivot during a selected trading session.
• Displacement, a fair value gap, structure confirmation, and a gap retest form later stages of the signal.
• A weighted score and optional EMA trend and rejection filters control entry eligibility.
• Stops use an ATR buffer beyond the sweep or current extreme, while targets scale with risk.
• The document contains no performance results to validate its score threshold or effectiveness.

Tags

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