Volume-Filtered Swing-Level Liquidity Sweep Reversal Strategy

Summary

This strategy marks the latest confirmed swing high and low as potential liquidity levels. A long setup occurs when price trades below a swing low and closes back above it; a short setup reverses that condition around a swing high. A volume filter requires the sweep candle’s volume to exceed a moving average by a configurable multiplier, and a cooldown limits repeated entries in the same direction.

The script enters in the reversal direction and can place an ATR-based stop and target using configurable multipliers and a risk-reward ratio. It also plots the levels and signals and includes alerts. The script’s labels describe the volume as an HFT or institutional filter, but the rules measure only relative bar volume and do not identify participant type or order-flow intent. The publication presents an educational strategy and parameter suggestions, not measured results; performance will depend on the market, timeframe, costs, and settings, and should be evaluated with realistic execution assumptions.

Key ideas

• Confirmed swing highs and lows serve as reference levels for potential liquidity sweeps.
• A reversal signal requires price to cross a level and close back on its original side.
• The sweep candle must meet a relative-volume threshold, and a cooldown limits repeat entries.
• ATR multiples define optional protective stops and profit targets.
• The script offers no reported performance evidence, and volume alone does not establish institutional activity.

Tags

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