Trading Liquidity Sweeps with Swing-Zone Reclaims
Summary
This price-action indicator marks demand zones at confirmed swing lows and supply zones at confirmed swing highs. A bullish signal requires price to trade below a demand zone’s wick extreme and then close above the pivot candle’s body; the bearish rule mirrors this at a supply zone. A close through the zone’s extreme invalidates it. The method therefore treats a failed break and reclaim as the trigger, rather than a successful breakout.
The indicator uses centered pivots, which become available only after the surrounding bars confirm the swing. Zones can expire or be removed when newer zones exceed a limit. On a signal, it projects a one-to-one measured move based on the sweep depth. The article describes use as a reversal entry, discretionary confluence filter, or range-bound fade, but provides no backtest or win-rate evidence. The target is a projection rather than a guarantee, and delayed pivot confirmation limits how early the zones can be identified.
Key ideas
- Demand and supply zones are anchored to the wick and body of confirmed swing candles.
- Signals require a wick sweep followed by a close back beyond the pivot candle’s body.
- A close beyond the wick extreme invalidates a zone instead of creating a signal.
- A one-to-one target is projected from the depth of the sweep.
- Centered pivot confirmation delays zone creation, and the document provides no performance validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.