Session Liquidity Sweep + Trend Confirmation

This strategy aims to capture high-probability intraday trades by combining liquidity sweeps with a trend confirmation filter. It is designed for traders who want a systematic approach to trade breakouts during specific market sessions while controlling risk with ATR-based stops.

How it Works:
Session Filter: Trades are only considered during a defined session (default 9:30 - 11:00). This helps avoid low-volume periods that can lead to false signals.

Trend Confirmation: The strategy uses a 50-period EMA to identify the market trend. Long trades are only taken in an uptrend, and short trades in a downtrend.

Liquidity Sweep Detection:

• A long entry occurs when price dips below the prior N-bar low but closes back above it, indicating a potential liquidity sweep that stops being triggered before the trend continues upward.
  

• A short entry occurs when price spikes above the prior N-bar high but closes below it, signaling a potential sweep of stops before the downward trend resumes.
  

ATR-Based Risk Management:

• Stop loss is calculated using the Average True Range (ATR) multiplied by a configurable factor (default 1.5).
  

• Take profit is set based on a risk-reward ratio (default 2.5x).
  

Position Sizing: Default position size is 5% of equity per trade, making it suitable for risk-conscious trading.

Inputs:

• Session Start/End (HHMM)
  
• Liquidity Lookback Period (number of bars to define prior high/low)
  
• ATR Length for stop calculation
  
• ATR Stop Multiplier
  
• Risk-Reward Ratio
  
• EMA Trend Filter Length
  

Visuals:

• Prior Liquidity High (red)
  
• Prior Liquidity Low (green)
  
• EMA Trend (blue)
  

Why Use This Strategy:

• Captures stop-hunt moves often triggered by larger market participants.
  
• Only trades with trend confirmation, reducing false signals.
  
• Provides automatic ATR-based stop loss and take profit for consistent risk management.
  
• Easy to adjust session time, ATR, EMA length, and risk-reward to suit your trading style.
  

Important Notes:
Assumes 0.05% commission and 1-pip slippage. Adjust according to your broker.
Not financial advice; intended for educational, backtesting, or paper trading purposes.
Always test strategies thoroughly before applying to live accounts.