forex-scalping.com

Code: Select all

//@version=5
indicator("Mechanical Sweep & Invalidation", overlay=true, max_labels_count=50)

// =========================================================================
// INPUTS: Process & Risk Parameters
// =========================================================================
grp_struct = "Market Structure"
lookback = input.int(15, title="Swing Pivot Lookback", group=grp_struct, tooltip="Candles required to confirm a swing high/low")

grp_process = "Process Adherence (The Kill Switches)"
maxCandles = input.int(5, title="Max Candles for Move", group=grp_process, tooltip="If the trade goes nowhere in this many candles, the thesis is dead.")
showLabels = input.bool(true, title="Show Sweep Labels", group=grp_process)

// =========================================================================
// LOGIC: Identify Liquidity Pools (Buy Side / Sell Side)
// =========================================================================
swingHigh = ta.pivothigh(high, lookback, lookback)
swingLow  = ta.pivotlow(low, lookback, lookback)

var float bsl = na // Buy Side Liquidity (Resistance)
var float ssl = na // Sell Side Liquidity (Support)

if not na(swingHigh)
    bsl := swingHigh
if not na(swingLow)
    ssl := swingLow

// Plot the liquidity levels (transparent until tested)
plot(bsl, color=color.new(color.red, 70), style=plot.style_linebr, title="BSL")
plot(ssl, color=color.new(color.green, 70), style=plot.style_linebr, title="SSL")

// =========================================================================
// LOGIC: Sweep Detection & Invalidation Tracking
// =========================================================================
// Bearish Sweep: Price pushes above BSL, but the candle closes below it.
bearishSweep = high > bsl and close < bsl and high[1] <= bsl and not na(bsl)

// Bullish Sweep: Price pushes below SSL, but the candle closes above it.
bullishSweep = low < ssl and close > ssl and low[1] >= ssl and not na(ssl)

var float invalidationLevel = na
var int   barsInTrade       = 0
var int   tradeDirection    = 0 // 1 for Long, -1 for Short

// Trigger Bearish Setup
if bearishSweep
    invalidationLevel := high
    barsInTrade := 0
    tradeDirection := -1
    if showLabels
        label.new(bar_index, high, "Sweep\nStop: " + str.tostring(high, "#.#####"), color=color.red, textcolor=color.white, style=label.style_label_down, size=size.small)

// Trigger Bullish Setup
if bullishSweep
    invalidationLevel := low
    barsInTrade := 0
    tradeDirection := 1
    if showLabels
        label.new(bar_index, low, "Sweep\nStop: " + str.tostring(low, "#.#####"), color=color.green, textcolor=color.white, style=label.style_label_up, size=size.small)

// =========================================================================
// LOGIC: Trade Management & Expiry
// =========================================================================
if not na(invalidationLevel)
    barsInTrade += 1

// Check for Hard Stop hit (Close beyond the wick)
stopHit = (tradeDirection == -1 and close > invalidationLevel) or (tradeDirection == 1 and close < invalidationLevel)

// Check for Time Expiry (Trade took too long to play out)
timeExpired = barsInTrade > maxCandles

// Reset tracker if stopped out or expired
if stopHit or timeExpired
    invalidationLevel := na
    tradeDirection := 0

// =========================================================================
// VISUALS: Plotting the Active Risk
// =========================================================================
// Plot a bright orange cross where your hard stop should be, only while trade is active
plot(invalidationLevel, color=color.orange, style=plot.style_cross, linewidth=2, title="Hard Invalidation")

// Paint the bar gray if the trade has expired based on time, signaling to get out
barcolor(timeExpired[1] and not stopHit[1] ? color.new(color.gray, 50) : na, title="Thesis Expired Bar Color")