Liquidity Sweep Candles

Liquidity Sweep Candles marks candles that take out the high or the low of the previous candle (a liquidity sweep) and classifies them by where they close.

Three types

The signal candle [1] is compared with the previous candle [2].

• FU: the candle sweeps the high (low) of [2] and closes beyond it. The weakest type: in most cases this is an ordinary trend candle.
• AFU: the candle sweeps the high (low) of [2] and closes back inside the range of [2].
• SFU: the candle sweeps the high (low) of [2] and closes beyond the opposite extreme of [2]. The candle covers the whole range of [2], wicks included.

A sweep of the high is a bearish pattern (expected reversal down), a sweep of the low is a bullish pattern. The body color of the signal candle does not matter, only where it closes.

What you see on the chart

• Pattern candles are colored: green shades for bullish, red shades for bearish. SFU is always the most visible color; the palette adapts to a dark or light chart background.
• A dot above the candle marks a bearish pattern, a dot below marks a bullish one.
• The panel in the lower left corner shows how many FU, AFU and SFU were found and their share of all closed candles.
• You can keep your own chart candles and show only the dots, or hide the dots and keep only the colors.

How signals are calculated

• Only closed candles are classified. The forming candle is drawn as a neutral candle.
• A signal appears when the candle closes and does not change afterwards (no repainting).
• Works on any symbol and timeframe.

Filters (optional)

• Wick filter for FU and AFU: minimum rejection wick as a share of the candle range.
• Sweep depth filter: minimum distance beyond the previous high or low, in points, as a fraction of ATR or as a fraction of the candle range.
• Body filter for SFU: minimum body as a share of the candle range.

Inputs

• Show FU (default false): show the weakest type.
• Show AFU (default true), Show SFU (default true).
• FU/AFU: min rejection wick / candle range (default 0.2, 0 = off).
• Sweep depth filter mode (default Off): Off / Points / Fraction of ATR / Fraction of candle range.
• Sweep depth threshold (default 0): value for the selected mode.
• SFU: min body / candle range (default 0, 0 = off).
• ATR period (default 14): used only in the ATR mode.
• Color pattern candles (default true): off = keep the chart's own candles.
• Show dots (default true): dots above/below pattern candles.
• Show statistics (default true): panel in the chart corner.

Please note

This is an analysis tool, not a trading system. It does not open trades and does not predict the market. A pattern candle is a reason to look closer at the chart, not a signal to buy or sell.