Liquidity Sweep & Reversal — Body Anchored + Risk (v6)

Overview

The Liquidity Sweep & Reversal — Locked to Price (v6) indicator identifies liquidity sweeps around major swing highs and lows, confirming reversals when price closes back inside the swept level.
All signals are locked to price (bottom of green candle for BUY, top of red candle for SELL), so they remain perfectly aligned when zooming or scaling.

This indicator is ideal for swing traders and scalpers who trade reversals, liquidity events, and reclaim structures.

How It Works

Detects confirmed swing highs and lows using a pivot-based structure.

Waits for a liquidity sweep — when price wicks beyond a recent swing.

Confirms a reclaim when price closes back inside the previous swing level.

Triggers a BUY or SELL signal anchored to the candle body.

Automatically calculates stop loss and risk using ATR and your inputs.

Input Settings

Swing Detection

Swing Detection Strength: How many bars confirm a swing pivot. Higher = stronger swings.

Bars to Confirm Reclaim: Number of bars after a sweep for price to close back within the swing zone.

Swing Proximity %: How close price must come to a swing to count as a liquidity sweep.

Trend Filter (optional)

Use EMA Trend Filter: When enabled, only BUY in uptrend and SELL in downtrend.

Fast EMA Length / Slow EMA Length: Define EMAs used to detect trend direction.

Risk & Stop Management

ATR Length: Period for ATR calculation (volatility measurement).

Base ATR Stop Buffer (x ATR): Distance of stop loss from entry based on ATR multiplier.

Position Size (quote units): Your total position size in quote currency (e.g., USDT).

Risk % of (Position / 20): Defines how much of your position to risk per trade.
Example: (Position / 20) × Risk % = per-trade risk.

Chart Elements

BUY Arrow (green): Appears after a liquidity sweep and reclaim near a swing low.

SELL Arrow (red): Appears after a sweep and reclaim near a swing high.

Labels: Display entry price, stop loss (SL), and calculated risk dollar value.

EMAs: Optional fast/slow moving averages for directional bias.

Dynamic Stops: Adjust automatically using ATR × risk settings.

Trading Tips

Use BUY signals near liquidity sweeps under swing lows.

Use SELL signals near liquidity sweeps above swing highs.

Adjust swing length for different timeframes:

Lower values for scalping (3–5)

Higher values for swing trading (7–10)

Respect stop loss levels and use risk control settings for consistent sizing.

Combine with volume, OBV, or structure for confirmation.

Alerts

BUY — Locked to Price: "BUY: swing low reclaimed with dynamic stop."

SELL — Locked to Price: "SELL: swing high reclaimed with dynamic stop."

Best Use Cases

Liquidity-based reversals

Swing entry confirmation

Stop hunt reclaims

Structure-based entries

Author

Created by roccodallas
For traders who value clean structure, risk control, and chart precision.