Trading Break-of-Structure Liquidity Sweeps with Swing Points

Summary

This article outlines an MQL5 strategy that uses swing structure and wick reversals to generate trades. It identifies swing highs and lows over a configurable lookback, labels them relative to prior swings, and uses higher highs or lower lows to establish bullish or bearish breaks of structure. After a break, a liquidity sweep is defined as price moving beyond a relevant swing level but closing back inside on a directional candle. The stated rules buy sell-side sweeps in bullish structure and sell buy-side sweeps in bearish structure.

The implementation includes configurable swing length, stop buffers, reward-to-risk settings, trade limits, handling of opposing positions, and chart annotations. The article says backtesting was performed, but the excerpt contains no report values or performance analysis. It therefore explains a rule set and its software controls rather than establishing an edge. Results would depend on market, timeframe, execution assumptions, and precise interpretation of swings and sweeps.

Key ideas

• Swing highs and lows are classified relative to earlier pivots to describe market structure.
• Higher highs and lower lows are used to identify bullish and bearish breaks of structure.
• A sweep occurs when price wicks beyond a relevant swing and closes back within the level on a directional candle.
• The rules buy sell-side sweeps in bullish structure and sell buy-side sweeps in bearish structure.
• The implementation includes buffered stops, reward-to-risk targets, trade limits, and position management.

Tags

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