FVG + Liquidity Sweep + CISD

FVG + Liquidity Sweep + CISD [PAC Method Exact]

The FVG + Liquidity Sweep + CISD [PAC Method Exact] indicator is a comprehensive technical tool designed to identify high-probability reversal setups by combining higher timeframe institutional levels with precise lower timeframe execution triggers.

Usage

This indicator automates a multi-step institutional trading strategy often referred to as the PAC Method. It focuses on price action occurring within Higher Timeframe (HTF) Fair Value Gaps to ensure all trades are aligned with institutional POIs (Points of Interest).

The strategy follows a specific sequence:

1. Identify an active HTF FVG (Fair Value Gap).
2. Wait for price to enter this HTF FVG.
3. Detect a Liquidity Sweep (Buyside or Sellside) within that HTF zone.
4. Identify a Change in State of Delivery (CISD) where price breaks the "trigger" bar of the sweep.
5. Confirm the entry with a local FVG formation in the new direction.

Bullish Setup

A bullish setup occurs when price enters a Bullish HTF FVG (green box). The script looks for price to sweep a recent low (Sellside Liquidity), followed by a move above the high of the sweep candle (CISD). Once a local bullish FVG forms, a triangle-up signal is plotted.

Bearish Setup

A bearish setup occurs within a Bearish HTF FVG (red box). The script identifies a sweep of a recent high (Buyside Liquidity), followed by a close below the low of the sweep candle (CISD). The entry is confirmed by a local bearish FVG and a triangle-down signal.

Details

The indicator employs a top-down approach within a single chart. It uses request.security() to pull FVG data from a user-defined higher timeframe, ensuring that the foundational bias is based on significant market imbalances.

The PAC Logic

The PAC Method relies on the Change in State of Delivery (CISD). Unlike a standard Market Structure Shift (MSS), which may require breaking a distant swing point, the CISD focuses on the immediate reversal of the candle that swept liquidity. This allows for tighter entries and higher risk-to-reward potential.

Volatility Filtering

To avoid noisy gaps, the HTF FVGs are filtered using an ATR-based volatility threshold. Only gaps that represent significant displacement relative to HTF volatility are displayed on the chart.

Settings

HTF FVG Management

• HTF FVG Timeframe: The timeframe used to detect the "anchor" Fair Value Gaps (e.g., 15m or 1H for a 1m/5m entry chart).
• FVG Volatility Threshold: Multiplier for ATR to filter the minimum size of valid HTF gaps.
• Max FVG Extension (Bars): Limits how far an unmitigated FVG projects forward in time.

Liquidity Logic

• Liquidity Lookback: The number of bars used to determine the local highs and lows for liquidity sweeps.

Visuals

• Bullish/Bearish Colors: Customizes the appearance of the HTF FVG zones and entry signals.
• Liquidity Colors: Defines the colors for Buyside (typically red for PAC style) and Sellside (typically blue) sweep boxes.