Liquidity sweep reversal strategyvsStochastic %K/%D reversion strategy
Liquidity sweep reversal strategy: Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed. · Stochastic %K/%D reversion strategy: Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
Liquidity sweep reversal strategy
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
Stochastic %K/%D reversion strategy
Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
Indicators
- Equal Highs/Lows (swing 3)
- Slow Stochastic (period 14, smooth 3)
Timeframes
Bias
Long & short
Long only
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.
- %K crosses above %D AND
- Both lines are inside the oversold zone (%K < 30).
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.
- %K crosses back below %D, OR %K pushes above 80 (overbought).
- Hard 2.5% stop; 4% take-profit.
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.
Higher trade frequency than RSI mean reversion and louder noise. Fits range-bound regimes; produces fast small wins and small losses. Trend regimes can be expensive — the oscillator stays pinned 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 Stochastic %K/%D reversion strategy
- You expect range-bound — the thesis is "Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror."
- You want a long-only bot on 5m–1h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Slow Stochastic (period 14, smooth 3)).
Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
Liquidity sweep reversal strategy
Equal-highs / equal-lows mark stop pools — fade the sweep when liquidity gets grabbed.
Stochastic %K/%D reversion strategy
Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
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