Trend-Filtered Swing Sweeps with ATR Stops and Reward Targets

Summary

This strategy looks for price to briefly cross a recent swing level and then close back inside it, treating the move as a liquidity sweep. Pivot highs and lows define supply and demand boundaries. A long setup requires a sweep below a demand boundary; a short setup requires a sweep above supply. Both require alignment between 20-period and 50-period simple moving averages, with both averages sloping in the trade direction, and a minimum separation between them relative to ATR.

The entry is taken when the setup occurs and the strategy is flat. The stop is placed at the sweep bar’s low for a long or high for a short, and the target is set using a configurable reward-to-risk multiple. ATR also filters out sweeps considered too small. The source provides rules and parameters, but no market, timeframe, or backtest results, so it does not establish that the setup is profitable. Pivot confirmation uses bars on both sides, which also affects when a swing level becomes available.

Key ideas

• Pivot highs and lows are used to define the latest supply and demand boundaries.
• A sweep requires price to breach a boundary and close back beyond it by a minimum ATR-scaled distance.
• The strategy filters entries using the relative position and slope of two moving averages.
• Stops use the sweep candle extreme, while profit targets scale the risk by a configurable reward-to-risk value.
• The document provides no performance data, and pivot confirmation can delay recognition of swing levels.

Tags

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