OPEN-SOURCE SCRIPT
Sweep and Engulf Strategy
The Sweep and Engulf Strategy identifies high-momentum price action setups where price sweeps the previous candle’s high or low and then reverses strongly enough to close through the opposite side of that candle.
A Bullish Sweep occurs when price trades below the previous candle’s low and then closes above its high. A Bearish Sweep occurs when price trades above the previous candle’s high and then closes below its low.
The strategy includes an optional Invert Mode, allowing signals to be traded in the opposite direction for testing reversal and exhaustion behavior.
Key Features
Bullish and bearish liquidity sweep detection
Full previous-candle engulf confirmation
Optional 200 EMA trend filter with adjustable EMA length
Optional previous-candle direction filtering
Standard or inverted trade signals
ATR-based or signal candle high/low stop losses
Adjustable ATR stop multiplier
Customizable risk-to-reward targets
Automatic entry, stop-loss and take-profit calculations
Visual green take-profit and red stop-loss zones
Long and short signal markers directly on the chart
Strategy Tester compatible for historical backtesting
The indicator is designed to combine liquidity sweeps, candle confirmation and structured risk management into a simple visual trading system.
All settings can be adjusted to fit different markets, timeframes and trading styles.
Note: This tool is intended for analysis and backtesting purposes. Past performance does not guarantee future results.
A Bullish Sweep occurs when price trades below the previous candle’s low and then closes above its high. A Bearish Sweep occurs when price trades above the previous candle’s high and then closes below its low.
The strategy includes an optional Invert Mode, allowing signals to be traded in the opposite direction for testing reversal and exhaustion behavior.
Key Features
Bullish and bearish liquidity sweep detection
Full previous-candle engulf confirmation
Optional 200 EMA trend filter with adjustable EMA length
Optional previous-candle direction filtering
Standard or inverted trade signals
ATR-based or signal candle high/low stop losses
Adjustable ATR stop multiplier
Customizable risk-to-reward targets
Automatic entry, stop-loss and take-profit calculations
Visual green take-profit and red stop-loss zones
Long and short signal markers directly on the chart
Strategy Tester compatible for historical backtesting
The indicator is designed to combine liquidity sweeps, candle confirmation and structured risk management into a simple visual trading system.
All settings can be adjusted to fit different markets, timeframes and trading styles.
Note: This tool is intended for analysis and backtesting purposes. Past performance does not guarantee future results.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.