SMC Liquidity Sweeps with Trend, Session, and Rejection Filters

Summary

The visible portion of this strategy combines a long EMA trend direction with an ADX threshold and a specified trading session. It tracks confirmed swing highs and lows, then identifies potential liquidity sweeps when price wicks beyond a prior pivot and closes back across it. A candle rejection test adds a condition based on the close's position within the candle and relative wick sizes. The script labels bullish sweeps below swing lows and bearish sweeps above swing highs.

The excerpt declares state variables for a market structure shift and a fair value gap, suggesting that later logic may use these concepts, but the supplied text ends before those rules or any entries, exits, and risk controls are shown. No backtest results or performance evidence are included. Consequently, the available material supports describing the filters and sweep detection, but not the complete trading method or its effectiveness. Pivot confirmation also depends on bars on both sides of the swing, so the level is only known after a delay.

Key ideas

• The visible trend filter compares price with a configurable long EMA and checks ADX against a threshold.
• Signals are restricted to a configured session and timezone.
• Bullish sweeps require a move below a prior swing low, a close back above it, and a bullish rejection candle.
• Bearish sweeps apply the corresponding conditions above a prior swing high.
• The excerpt ends as market structure shift and fair value gap variables are introduced, leaving trade execution and results unspecified.

Tags

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