Swing Sweeps, Displacement, and Fair Value Gap Entry Setup

Summary

The visible script outlines a multi timeframe setup built around hourly swing levels and lower timeframe price action. It marks confirmed pivot highs and lows, then treats a move beyond a prior swing followed by a close back across that level as a bearish or bullish mitigation event. The sweep wick provides a stop anchor, with a configurable tick buffer. After mitigation, the setup can require a directional displacement candle sized against ATR; inputs also define an optional one trade per mitigation rule and a risk reward target multiple.

The source begins describing a three candle fair value gap filter, but the supplied excerpt ends before the full entry and exit rules are shown. It therefore does not establish exactly how gaps are selected or trades are executed. No market, backtest period, results, or cost assumptions are supplied in the visible material. The parameters and setup are useful as a framework, but the incomplete code prevents a full assessment or replication from this excerpt alone.

Key ideas

• A confirmed hourly pivot provides a reference level for detecting a sweep and close back across the swing.
• The sweep wick is used as a stop anchor, with a configurable tick buffer.
• The setup can require a directional displacement candle measured against ATR after mitigation.
• The visible code starts defining a three candle fair value gap filter, but omits the remaining entry logic.
• No backtest evidence or complete execution rules are included in the excerpt.

Tags

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