Crypto Institutional Liquidity Sweep Strategy

Strategy Overview: Institutional Liquidity Sweep & Trend Convergence
This strategy is a high-conviction systematic trading framework designed to exploit "stop-runs" and liquidity grabs within a dominant market trend. It combines institutional price action concepts with mathematical filters to ensure entries occur only when trend direction, volatility, and liquidity align.

1. The Trend Framework (EMA 200 Filter)
The foundation of the strategy is the 200-period Exponential Moving Average (EMA). This acts as a "Directional North Star."

Long Bias: Trades are only considered when price is above the EMA 200.

Short Bias: Trades are only considered when price is below the EMA 200.

Buffer Logic: An optional percentage buffer can be applied to avoid "choppy" entries when price is hugging the moving average.

2. The Entry Trigger (Liquidity Sweeps)
The strategy identifies Institutional Liquidity Pools using Swing Highs and Swing Lows (Pivots).

The Sweep: The system waits for price to pierce below a recent structural low (Bullish Sweep) or above a recent structural high (Bearish Sweep).

The Trap: It then monitors for a "reclaim" where price quickly rejects the level. This suggests that the breach was not a breakout, but a hunt for stop-losses to fuel a move in the opposite direction.

3. Secondary Confirmation Filters
To maximize the win rate, the strategy requires a Secondary Filter to confirm market health (User selectable):

Volatility Oscillator: Ensures the market is in an Expansion Phase. It requires the oscillator to be rising, indicating that momentum is behind the reversal.

Smart Trendlines (Structure): Uses Linear Regression Slope to ensure the immediate micro-structure is aligned with the macro-trend.

4. Entry Confirmation (The Reversal Candle)
A trade is not triggered simply because a level was swept. The strategy requires a Reversal Confirmation:

Price Location: The candle must close in the upper 40% (for longs) or lower 40% (for shorts) of its total range.

Directional Body: The candle must close bullish for longs and bearish for shorts, confirming that buyers or sellers have seized control of the bar.

5. Risk Management (Fixed 1:2 RR)
The strategy prioritizes capital preservation through an ATR-based (Average True Range) risk model:

Static Exits: Upon entry, the Stop Loss and Take Profit levels are calculated and locked. They do not move, ensuring a mathematically pure 1:2 Reward-to-Risk ratio.

Volatility Adjusted: The distance of the stop loss is determined by the ATR, meaning the strategy automatically widens stops during high volatility and tightens them during calm periods.