Sweep + FVG Reversal [Strategy] by DoruGavrila
By DoruGavrila
Performance Metrics
- Author: DoruGavrila
- Symbol: IG:DAX
- Timeframe: 15 minutes
Description
That pattern can still be a valid trading idea. Just know that this is what you’re testing.The setup, bearish side (the bullish side is the exact mirror)1. Background structure: an uptrend[certain] The script tracks swing points that are confirmed by 3 bars on each side. This means every pivot is known only 3 bars after it forms.It requires the most recent swing low to be higher than the swing low before it, so the market is making higher lows.2. The “sweep” (a breakout, really)[certain] A bullish candle closes above the last swing high.Its body must be at least 0.8 × ATR(14).The script then draws a “SWEEP” label and a line along the broken high.[certain] If a sweep in the opposite direction appears, it cancels any setup that’s still pending.3. The FVG has to appear within 10 bars[certain] It looks for a bearish fair value gap: the current bar’s high is below the low from 2 bars earlier.The gap must be at least 0.15 × ATR.[certain] If several gaps appear, it keeps only the most recent one. That’s not necessarily the largest or the best one.4. The structure break, which is the signal[certain] Within 10 bars of the sweep, a bearish candle with a body of at least 0.8 ATR closes below the higher low from step 1.An FVG from step 3 must already exist. A gap formed on the break bar itself also counts.When this happens, the alert fires and a dotted blue line marks the broken level.If 10 bars pass without a break, the setup is dropped.5. The entry window (visual only)[certain] It draws the FVG box plus a blue “ENTRY WINDOW” box.For the next 20 bars, the blue box tracks the lowest low and how high price has pulled back. The top of the box is capped at the bottom of the FVG.The idea is that you sell when price retraces up into the FVG.What it doesn’t do[certain] It has no entry trigger, no stop and no target. The alert fires at the structure break (step 4), not when price retraces into the FVG.[certain] It has no invalidation. If price runs back above the sweep high, the entry window stays on the chart anyway.[certain] It tracks only one entry window at a time. A new signal replaces the old one, though the old boxes stay on the chart.[likely] Alerts can fire and then disappear while a bar is still forming. Set the alert to “Once Per Bar Close”. Otherwise the cross below the level can trigger and then un-trigger before the bar closes.[guessing] The FVG almost always forms after the breakout bar. A bearish gap and a strong bullish close above the high on the same bar can’t really happen together. So in practice, the 10-bar clock covers both the FVG and the break.What would turn it into a testable strategyTo make it a backtestable strategy, three things have to be decided:Entry: a limit order at the FVG bottom, the FVG midpoint, or the FVG top.Stop: above the sweep candle’s high.Target: a fixed R multiple, or the prior swing low.