Session Sweep & iFVG RR

The Session Sweep & iFVG RR indicator automates the identification of liquidity sweep setups during specific market sessions and helps traders define precise risk reward ratios using Inverted Fair Value Gaps or ATR based stops. It streamlines the process of spotting session breakouts that return to the range, providing a systematic approach to identifying high probability trade entries based on classic smart money concepts.

Usage

The Session Sweep & iFVG RR tool is designed to work across various timeframes and financial assets. To use it, simply add the indicator to your chart and select your desired trading session in the settings.

• Session Monitoring: The indicator identifies the high and low of the selected session (London, New York, Tokyo, or Sydney). It monitors price movement following the session close or during the session to detect potential liquidity sweeps.
• Sweep Confirmation: When price breaks outside the session range and returns within a specified number of bars, the script marks the event as a valid sweep.
• Trendline Breakouts: After a valid sweep, the tool attempts to plot a trendline connecting relevant pivot points. A trade setup is confirmed once price breaks this trendline while remaining within the session range.
• Execution: Once a setup is triggered, the script automatically draws a risk management box, suggesting a target based on your RR settings and a stop loss based on either an Inverted Fair Value Gap or the Average True Range.

Details

This script is built on the foundation of liquidity sweep theory, which suggests that markets often move beyond session highs or lows to gather liquidity before moving in the opposite direction.

The core implementation involves tracking price action relative to the session high and low. If price sweeps these levels and fails to maintain the breakout, the script identifies it as an opportunity. The inclusion of Inverted Fair Value Gaps (iFVG) adds a layer of precision, as these areas often act as support or resistance after the original gap is invalidated. By calculating the slope of the trendline based on the sweep, the script helps traders visualize the momentum shift necessary to enter a trade with a favorable risk to reward profile.

Settings

• Session to Monitor: Choose the specific session (Sydney, Tokyo, London, or New York) to track for liquidity sweeps.
• Max Bars to Return to Range: Defines how many bars the price has to return back into the session range after a sweep to be considered valid.
• ATR Length: The number of bars used to calculate the Average True Range for volatility based stops.
• Max Sweep ATR Multiple: Limits how far the sweep can extend beyond the session range to ensure the breakout remains relevant.
• Stop Loss Type: Choose between iFVG (uses the gap as a stop zone) or ATR (uses volatility to set a fixed stop distance).
• Strict Mode: When enabled, this filter hides setups that do not meet all criteria, reducing noise.
• RR Target ATR Multiple: Sets the profit target distance based on a multiple of the current ATR value.
• Session Color: Customizes the background color of the active session box for visual clarity.

FAQ

How do I access the Session Sweep & iFVG RR indicator?

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