OTE Sweep Signal + MTF Bias + VWAP + DR

The OTE Sweep Signal + MTF Bias + VWAP + DR indicator provides a comprehensive intraday trading framework that integrates liquidity sweeps, retracement entries, multi-timeframe trend analysis, and session-based range dynamics. It is designed to automate the identification of institutional trading concepts like Optimal Trade Entry (OTE) and Dealing Ranges (DR) while providing built-in performance tracking.

Usage

The Usage section describes how the script can be used, particularly for futures and liquid intraday instruments. The tool functions by monitoring price action relative to High Timeframe (HTF) candle extremes to detect liquidity sweeps.

• OTE Entry Signals: When price sweeps a prior HTF candle high or low and retraces into the 50%–61.8% zone, the indicator plots entry signals. These can be used to identify high-probability reversals or trend continuations after liquidity has been engineered.
• Dealing Range (DR) Framework: The tool tracks the Initial Balance for Asia, London, and New York sessions. Traders can use the NY DR break to establish a daily bias; for example, if the NY DR high is broken, the indicator can filter for long OTE signals only.
• Multi-Timeframe (MTF) Filtering: The MTF Bias Table allows users to see the trend across seven different timeframes simultaneously. A "Bull/Bear Score" helps traders ensure they are trading in alignment with the broader market structure.
• Risk Management: Every signal generates visual levels for Entry, Stop Loss, Break-Even (HTF Open), and Take Profit. The Stop Loss can be set to the prior candle extreme or a buffer beyond the OTE zone.

Details

The script execution relies on several core architectural concepts:

• Sweep Detection: The indicator locks the high and low of the previous HTF candle (e.g., 60m). A "sweep" is registered if the current price exceeds an extreme without violating the opposite extreme within a specific time window.
• Optimal Trade Entry (OTE): The OTE zone is calculated as the area between the equilibrium (50%) and a user-defined deep retracement level (default 61.8%) of the swept candle's range.
• Dealing Range Logic: The DR is established during the "build window" of a session. Once the window closes, the range is frozen. The "extend window" then tracks price expansion relative to this range.
• Performance Tracking: Two built-in tables calculate real-time statistics, including Win Rate, Net P&L in points and dollars, and an hourly breakdown of trade performance to identify the most profitable trading windows.

Settings

Timeframe

• Signal Timeframe: Sets the HTF used for liquidity sweeps and OTE zones (default 60m).
• Auto Sweep Window: Automatically calculates the valid timeframe for a sweep to occur.

OTE Zone

• OTE Level (%): Defines the deep retracement boundary for the entry zone (default 61.8%).
• Show OTE Zone: Toggles the visual shaded retracement area.

Signals

• Stop Method: Choose between the prior candle high/low or a buffer beyond the OTE zone.
• Max Prior Candle Range (pts): Filters out setups where the swept candle is too large, suggesting excessive volatility.
• Target Method: Select between the opposite extreme, next swing level, or a fixed Risk:Reward ratio.

Filters

• Swing Filter: Prevents signals if price breaches intermediate HTF swing structures.
• Session Filter: Restricts signals to specific hours (e.g., 9 AM to 4 PM ET).
• VWAP Filter: If enabled, restricts longs to prices above VWAP and shorts to prices below VWAP.

Dealing Range (DR)

• Show Asia/London/NY DR: Toggles session-specific boxes and levels.
• Confirmation Closes Required: The number of candle closes outside the DR needed to confirm a directional bias.
• Time Gate: Prevents the DR bias from locking in before a specific time to avoid early session fakeouts.

MTF Bias Table & Results

• TF 1–7: Configurable timeframes for the bias dashboard.
• $ Per Point: Used for calculating the dollar-based P&L in the results table.
• Show Accuracy: Displays the historical success rate of each timeframe's bias.

FAQ

How do I interpret the MTF Bias Table? The table shows whether the current candle on each timeframe has broken the previous candle's high (Bullish) or low (Bearish). A high score (e.g., 6B / 1S) indicates strong trend confluence across multiple timeframes.

What is the difference between the DR Build and Extend windows? The Build window is the period (Initial Balance) where the high and low levels are established. The Extend window is the remainder of the session where price is expected to react to or expand beyond those established levels.

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