LIQUIDITY SWEEP Trading Guide
The Liquidity Sweep & Reclaim indicator is a powerful leading tool designed to detect false breakouts (liquidity sweeps) and confirm early trend reversals through Change of Character (CHoCH) patterns.
What does the indicator show?
- Sweep Markers (✖): Identifies exact moments when price wicks past a previous swing level but closes back inside, indicating trapped traders.
- CHoCH Lines: Draws horizontal lines to highlight structural breaks that confirm a sweep has led to a valid trend reversal.
- Reclaim Zones: Shaded supply and demand zones that project forward after a confirmed sweep and reclaim, creating high-probability areas for pullbacks.
Key Settings
- Pivot Lookback: The number of bars used to identify the swing highs and swing lows that act as liquidity pools.
- Show Sweeps / CHoCH Lines / Zones: Toggles to customize the visibility of individual signals and visual markers on the chart.
- Zone Extend (bars): Determines how far into the future (in bars) the active Reclaim Zones will be projected.
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. Discrete Signals
Trigger actions based on exact structural events occurring on the current bar.
bullSweep/bearSweep— Fires when price sweeps liquidity by wicking past a swing point, but closes inside it.bullReclaim/bearReclaim— Fires when price officially breaks the opposite structure (CHoCH) following a sweep, confirming the reversal.
Strategy Example: A solid counter-trend entry strategy could trigger a Long order precisely when bullReclaim is true.
2. Dynamic Zones
Use these to filter trades or set entry areas during pullbacks.
bullReclaimZone/bearReclaimZone— Spatial areas that act as strong support (Bull) or resistance (Bear).
Strategy Example: You can require that price_enters bullReclaimZone is true to ensure you are buying at a discount after a structural shift.
3. Zone Boundaries
Access the exact top and bottom price levels of the active zones.
bullZoneTop/bullZoneBtm— The upper and lower bounds of the Bull Reclaim Zone.bearZoneTop/bearZoneBtm— The upper and lower bounds of the Bear Reclaim Zone.
Strategy Example: Place a protective stop-loss dynamically at the bullZoneBtm when entering a Long position within the demand block.