Velez Price Action Signals (with 20 & 200 SMA)

Velez Price Action Signals – With 20 & 200 SMA Overlay
This TradingView Pine Script is a clean and powerful reversal signal tool inspired by Oliver Velez’s price action philosophy, enhanced with trend context via two Simple Moving Averages.

🔍 Signal Logic
Buy Signal:

Current candle sweeps below the previous 5-bar low (liquidity grab).

Candle is bullish (close > open).

The lower wick is significantly larger than the body (e.g. ratio > 1.5).

Sell Signal:

Current candle sweeps above the previous 5-bar high.

Candle is bearish (close < open).

The upper wick is significantly larger than the body.

Signals appear as BUY/SELL labels on the chart (non-repainting).