Liquidity Sweep Mean Reversion [XAUUSD/XAGUSD] — Strategy by Just_Aboy

By Just_Aboy

Performance Metrics

Description

# Liquidity Sweep Mean Reversion [XAUUSD/XAGUSD]### Professional Institutional Orderflow Strategy for Gold & Silver — M1 to M15---## OverviewThis strategy is built around one of the most reliable and repeatable patterns in intraday precious metals trading: **liquidity sweeps followed by mean reversion**. Large institutional participants systematically drive price into clusters of stop orders resting above swing highs or below swing lows — triggering retail stops before reversing sharply in the opposite direction. This script detects those engineered moves in real time and positions entries precisely at the point of reversal.Optimized for **XAUUSD and XAGUSD** on timeframes from **M1 through M15**, the strategy combines institutional orderflow concepts with technically sound confirmation filters to produce high-quality, well-defined trade setups.---## How It Works### 1. Liquidity Zone DetectionThe script continuously maps the highest high and lowest low of the last **20 and 50 bars** (both lookback periods are fully adjustable). These zones represent areas where stop orders from retail traders accumulate — the primary targets for institutional order flow.### 2. Sweep DetectionA sweep is confirmed when a candle's wick **breaks through a liquidity zone** but the candle **closes back inside the range** — the classic stop-hunt / fakeout pattern. This single condition identifies the moment liquidity has been collected and a reversal is likely.### 3. Entry ConfirmationRaw sweep signals are filtered through two additional layers before an entry is triggered:- **EMA Cross** (configurable Fast/Slow EMA, default 9/13): Price must reclaim the EMA after the sweep- **VWAP Filter**: Long setups require price above VWAP; Short setups require price below VWAP---## Strategy Modes — Adjustable AggressionThree distinct entry modes give full control over the risk/reward profile:| Mode | Entry Trigger | Best For ||---|---|---|| **Conservative** | Market Structure Shift (break of last swing high/low after sweep) + EMA + VWAP | Lower frequency, highest confirmation || **Balanced** | Candle close back inside range + EMA cross + VWAP | Default — best overall balance || **Aggressive** | Immediate entry at the sweep candle | Highest frequency, tightest SL, requires active management |---## Precision Exit Management- **Stop Loss** — Placed just beyond the wick of the sweep candle (with configurable % buffer), making the SL technically invalidating for the setup- **Take Profit** — Automatically targets the opposing liquidity pool (next significant high/low)- **Minimum RRR Filter** — Trades are only executed when the calculated Risk/Reward Ratio meets or exceeds the configured minimum (default 1:1.5). Substandard setups are skipped entirely- **Partial Close** — Optionally closes 50% of the position at EMA touch (configurable %), locking in profit while letting the remainder run to full TP---## Visual Tools- **Liquidity Zone Boxes** — Subtle gray boxes marking both lookback zones on the chart- **Sweep Markers** — Small ✕ symbols placed directly on confirmed sweep candles- **BUY / SELL Labels** — Signal labels showing entry direction and live RRR value- **MSS Markers** — Triangles marking confirmed Market Structure Shifts (Conservative mode)- **SL / TP Lines** — Dashed lines showing exact Stop Loss and Take Profit levels for the active position- **Session Shading** — Out-of-session bars are visually dimmed---## Live Dashboard (Top Right)A compact, always-visible panel displays:| Field | Description ||---|---|| Mode | Active strategy mode || VWAP Status | Current Bullish / Bearish bias relative to VWAP || Daily Vol (K) | Intraday cumulative volume in thousands || ATR(14) | Current volatility reading || Sweep | Active sweep signal status || Position | Current open trade direction || RRR | Risk/Reward Ratio of the last signal || Session | Time filter status (Active / Inactive) |---## Alert Conditions (Webhook Ready)Six fully configurable alert conditions for push notifications and webhook integrations:- 🟢 **LONG Signal** — Full entry signal confirmed- 🔴 **SHORT Signal** — Full entry signal confirmed- ⚡ **Bullish Sweep** — Raw sweep detected (bearish to bullish)- ⚡ **Bearish Sweep** — Raw sweep detected (bullish to bearish)- 🔵 **MSS Bullish** — Market Structure Shift to the upside- 🔵 **MSS Bearish** — Market Structure Shift to the downside---## Time FilterBuilt-in session filter (default **08:00 – 20:00 UTC**) excludes low-liquidity dead-market periods. Both start and end times are fully configurable. Active during London and New York sessions by default.---## Key Settings at a Glance| Parameter | Default | Description ||---|---|---|| Strategy Mode | Balanced | Entry aggression level || Lookback Short | 20 | Bars for short-term liquidity zones || Lookback Long | 50 | Bars for long-term liquidity zones || EMA Fast | 9 | Fast EMA for cross confirmation || EMA Slow | 13 | Slow EMA for cross confirmation || VWAP Anchor | Session | VWAP reset period || Min RRR | 1.5 | Minimum acceptable Risk/Reward || SL Buffer | 0.5% | Percentage offset beyond sweep wick || Partial TP | On | Close 50% at EMA touch || Time Filter | 08:00–20:00 UTC | Active trading session window |---## Recommended Setup for XAUUSD M5- **Mode:** Balanced- **Lookback:** 20 / 50- **SL Buffer:** 0.3–0.5%- **Min RRR:** 1.5- **Session:** 08:00–20:00 UTC (London + New York)---*This script is intended as a decision-support tool. Past performance in backtesting does not guarantee future results. Always apply proper risk management.*

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