SMC Fractal Entries Using Liquidity Sweeps and Structure Breaks
Summary
This strategy combines swing structure, liquidity sweeps, and a break of structure to define directional setups. A sweep occurs when price moves beyond a recent swing extreme and closes back inside; a break of structure in the same direction must follow within a configurable number of bars. After that confirmation, the strategy tracks order blocks, fair value gaps, and breaker blocks as potential entry zones. Entries require a close inside a zone, with higher-timeframe EMA direction and session hours acting as filters.
Stops are placed beyond the selected zone with a buffer, and profit targets use a configurable reward-to-risk multiple. The script also describes zone invalidation rules and draws the tracked levels and signals. The supplied material specifies the strategy mechanics and settings, but gives no backtest results or evidence that the Smart Money Concepts interpretations predict future price movements. Swing confirmation, session choice, instrument, and chart timeframe may affect signals and execution.
Key ideas
- A directional setup begins with a wick beyond a recent swing extreme followed by a close back inside.
- A break of structure must confirm the sweep before the strategy establishes directional bias.
- Entries occur on a close within an order block, fair value gap, or breaker block.
- A higher-timeframe EMA and configured trading sessions filter possible entries.
- Stops sit beyond the selected zone, and targets are set using a reward-to-risk multiple.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.