Volume-Confirmed Swing Liquidity Sweep Reversal Strategy

Summary

This Pine strategy treats confirmed swing highs and lows as liquidity levels. It looks for price to wick beyond a level and close back across it, then requires volume to exceed a multiple of its moving average. A qualifying sweep below a swing low triggers a long entry; a sweep above a swing high triggers a short entry. Inputs control pivot confirmation, volume filtering, enabled directions, and a cooldown between signals.

For open positions, the script can place ATR-based stop and target orders using a risk-reward setting. The supplied document is only a partial source listing: it ends during the long-position risk-management calculation, so the complete exit logic cannot be assessed. It gives no backtest results or performance evidence. Its “HFT” and institutional framing is not supported by the shown logic, which uses bar-level pivots and volume rather than identifying high-frequency traders or order flow.

Key ideas

• The strategy marks the latest confirmed swing high and low as potential liquidity levels.
• A sweep signal requires a wick beyond a level, a close back across it, and elevated volume.
• Bullish sweeps can trigger longs, while bearish sweeps can trigger shorts, subject to a cooldown.
• ATR-based trade management is configurable, but the excerpt ends before the full exit logic is shown.
• The document provides no evidence that the method identifies institutional or high-frequency activity.

Tags

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