Liquidity sweep reversal strategyvsPremium/Discount Zones strategy
Liquidity sweep reversal strategy: Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed. · Premium/Discount Zones strategy: Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Liquidity sweep reversal strategy
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Indicators
- Equal Highs/Lows (swing 3)
- Premium/Discount Zones (lookback 200)
Timeframes
Bias
Long & short
Long & short
Market fit
Range-bound
Range-bound
Entry rules
- Short on an EQH sweep — buy-side stops grabbed, sellers step in.
- Long on an EQL sweep — sell-side stops grabbed, buyers reload.
- Long when price is inside the discount zone (current_zone = +1).
- Short when price is inside the premium zone (current_zone = -1).
Exit rules
- Opposite-side sweep closes the trade — that's the next liquidity event and the reversal leg is done.
- 4% trailing stop, 3-bar cooldown.
- Position closes when price returns to equilibrium.
- 4% trailing stop, 5-bar cooldown.
Expected behavior
Advanced — sweep recognition is fast and noisy on short timeframes. Lots of small trades, occasional clean reversals when the sweep is the real local extreme. Pair with risk management; the entry triggers right into the wick.
Range trader — fits balanced markets where extremes get bought / faded back to mid. Stacks losses in strong trends that camp at one extreme for many bars.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy — not a back-test forecast.
When to pick Liquidity sweep reversal strategy
- You expect range-bound — the thesis is "Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed."
- You want a long & short bot on 5m–4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Equal Highs/Lows (swing 3)).
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
When to pick Premium/Discount Zones strategy
- You expect range-bound — the thesis is "Buy the discount extreme, fade the premium extreme, exit at equilibrium."
- You want a long & short bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Premium/Discount Zones (lookback 200)).
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Liquidity sweep reversal strategy
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
Related comparisons
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