Structure Breaks and Fair Value Gaps with Fixed Risk and Reward
Summary
This strategy combines swing-structure breaks with a recent fair value gap (FVG) and a moving-average trend filter. A bullish signal requires price to cross above the latest pivot high, a bullish gap to have appeared within the configured lookback, and price to be above both the SMA and EMA. The short setup reverses those conditions. Inputs let users change the pivot and gap windows, moving-average lengths, stop distance, reward multiple, and break-even trigger.
On a signal, the script records the close as its entry reference, sets a fixed-distance stop and a target based on the risk-to-reward setting, and can move the stop to entry after a chosen favorable move. It also draws trade zones and lines and counts wins and losses. These counts depend on the script’s own candle high/low touch logic; the code shows no external performance study. Instrument-specific pip conversion and bar-level sequencing can affect results, and the author recommends adjusting inputs without supplying evidence that any setting performs best.
Key ideas
- A long signal combines a close above the latest pivot high with a recent bullish fair value gap and bullish moving-average alignment.
- A short signal uses a pivot-low break, a recent bearish gap, and bearish moving-average alignment.
- Stops use a configurable fixed distance, while targets scale that distance by a chosen reward multiple.
- The stop can move to the recorded entry level after price reaches a configurable reward threshold.
- The displayed win rate reflects the script’s own price-touch accounting and is not independent validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.