Break & Retest + Liquidity Sweep Entry

The Break & Retest + Liquidity Sweep Entry indicator identifies market structure shifts and potential entry points by detecting breaks of structure (BOS) and subsequent price retests of those broken levels. This tool helps traders visualize price action dynamics by highlighting key levels where price may pivot or continue its trend after a breakout.

Usage

The script functions by first identifying a Break of Structure. When a swing high or low is broken, the script marks the event with a vertical line and a triangle plot.

• Break of Structure (BOS): A vertical line appears on the chart when a candle closes beyond the most recent swing high or low.
• Retest Detection: After a BOS, the indicator monitors the "Last Broken High" or "Last Broken Low" levels. If price returns to this level within a specific tolerance range (defined by ATR), a circle or box is displayed to signal a potential retest entry.
• Liquidity Sweep: Users can enable a liquidity sweep filter. This requires price to sweep a recent swing level (taking out liquidity) before confirming the retest entry, providing a higher-confluence signal.
• Visual Cues: Entry signals (circles/boxes) are specifically optimized for the 1-hour timeframe by default to help filter out noise, though BOS lines and levels appear across all timeframes.

Details

The indicator utilizes a swing lookback period to determine local highs and lows. Once these levels are broken by a candle close, the script stores the price of the broken level. The retest logic uses a tolerance band calculated as a multiplier of the Average True Range (ATR). This ensures that the "retest" doesn't have to hit the level perfectly but rather enters a zone of interest.

The liquidity sweep logic checks if the current price has pierced a recent swing level and then closed back above/below it, indicating a rejection of that liquidity pool.

Settings

• Swing Lookback: Determines the number of bars used to identify local swing highs and lows.
• Retest ATR Multiplier: Adjusts the width of the tolerance zone around the broken level for retest detection.
• Show Entry Circle on 1H only: When enabled, circles will only appear on the 60-minute timeframe.
• Show Entry Box: Toggles the visibility of box-shaped labels for entry signals.
• Require Liquidity Sweep Confirmation: If enabled, entries will only trigger if a liquidity sweep occurs in conjunction with the retest.

FAQ

How do I use the Break & Retest + Liquidity Sweep Entry?

Wait for a vertical line to indicate a Break of Structure, then look for the price to return to the highlighted broken level. An entry signal (circle or box) suggests a potential long or short opportunity.

What is the purpose of the Liquidity Sweep setting?

The liquidity sweep setting filters for scenarios where price briefly "fakes out" a previous swing level before moving in the intended direction, which can often lead to more reliable entry points.

How can I access this script?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.