Swing-Break and Displacement-Zone Entries for an Imbalance Trend Strategy

Summary

This script outlines a price-action strategy that tracks recent swing highs and lows to classify direction. A close above the latest swing high or below the latest swing low updates the trend state; a reversal from bearish to bullish or bullish to bearish is marked as a trend break. It also identifies displacement candles when the candle body exceeds a specified share of its full range, then records demand or supply zones from those candles.

The visible entry logic appears to combine the prevailing trend with the first later revisit of its matching zone. The excerpt ends mid-condition, so the complete entry, exit, and risk rules cannot be verified. Stop-loss and take-profit percentages appear as inputs, but their use is not visible here. No backtest results or market-specific evidence are included, and pivot-based levels may become known only after subsequent bars confirm them.

Key ideas

• The script uses closes beyond tracked swing highs or lows to update the trend state.
• A trend break is marked when the state changes direction.
• Large candle bodies define displacement events used to establish demand and supply zones.
• The visible entry idea combines trend direction with a first revisit of the corresponding zone.
• The supplied excerpt is incomplete, so full trade management and results cannot be assessed.

Tags

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