SFP Trend & VWAP Liquidity Pro

The SFP Trend & VWAP Liquidity Pro indicator provides a unified liquidity sweep detection system that combines Swing Failure Pattern (SFP) identification with real-time swing high/low tracking and dual independent trend filtering. It aims to highlight high-probability reversal entries at institutional liquidity levels by ensuring signals align with the broader market context.

Usage

The Usage section describes how the script can be used to identify institutional liquidity grabs. A signal is generated when price sweeps beyond a prior swing level—trapping breakout traders—and subsequently closes back within the range, provided the trend filters confirm the direction.

• Bullish Setup: Monitor the green lower liquidity line. If price drops below this line but closes back above it while remaining above both trend filters (Filter A and B), a "BULL SFP" label is plotted.
• Bearish Setup: Monitor the red upper liquidity line. If price rises above this line but closes back below it while remaining below both trend filters, a "BEAR SFP" label is plotted.
• Scalping: Users can reduce the Swing Lookback Period to 50–75 and utilize a Session-anchored VWAP for faster response times.
• Swing Trading: It is recommended to use a lookback period of 150+ and anchor the VWAP to Month or Year periods to filter for macro trends.

Details

The script tracks market structure using a configurable Swing Lookback Period to define the relevant high and low points. The SFP engine employs a three-condition check to ensure the validity of a sweep:

1. The current bar's extreme (High/Low) must breach the swing level.
2. The current bar's close must return inside the swing level.
3. The previous bar's extreme must not have breached the level, ensuring the signal is fresh.

The dual trend filters (Filter A and B) act as a secondary confirmation layer. By requiring two different filters—often set at different sensitivities or timeframes—the indicator filters out low-quality SFP signals that occur against the prevailing institutional bias.

Settings

• Filter A/B Type: Choose between VWAP, HMA, EMA, SMA, or Off to define the trend filtering mechanism.
• Filter A/B Length: Sets the smoothing period for the selected Moving Average types.
• VWAP Reset (Anchor): Determines the period at which the VWAP calculation resets (Session, Week, Month, Year, or None).
• Swing Lookback Period: Defines the number of bars used to identify the most recent swing high and swing low (default is 150).

FAQ

How do I access SFP Trend & VWAP Liquidity Pro?

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

What assets does this indicator work on?

The indicator is designed to work across all asset classes including Indices, Forex, Gold, Oil, and Cryptocurrency.

Which timeframes are best for SFP detection?

While the script can be used on any timeframe, it is most effective on higher timeframes such as H1, H4, and D1 where liquidity levels are more significant.