Session Sweeps [LuxAlgo] — Indicator by LuxAlgo (2024)

The Session Sweeps indicator combines ICT-based features for a complete trading methodology involving market sessions, market structure, and fair value gaps to find optimal entry conditions for trading price action.

Traders frequently tend to place stop/limit orders at the high and low points of major trading sessions such as Asian (Tokyo), European (London), and North American (New York), resulting in the establishment of liquidity pools at those particular levels. The Session Sweeps indicator is crafted to recognize and underscore occurrences of session sweeps or liquidity sweeps during these major trading sessions.

🔶 USAGE

Default settings utilize major forex trading sessions, yet users can select their preferred opening and closing times, rename the sessions, or adjust the colors. It's important to note that the specified times for each session align with the respective local timezones: Asian (Tokyo) UTC+9, European (London) UTC, and North American (New York) UTC-5.

If the price briefly crosses either the highest or lowest point of a market session. These movements, aiming at triggering stop losses, suggest potential shifts in the market direction. Detecting such movements is the fundamental purpose and core functionality of the script.

🔹Market Structure Shifts

A Market Structure Shift refers to a change in market direction, either from an uptrend to a downtrend or vice versa. A part of a common entry model when using session sweeps is waiting for the formation of a CHoCH after a session sweep.

🔹Fair Value Gaps

A Fair Value Gap (FVG) holds particular appeal for price action traders, emerging when there are inefficiencies or imbalances in the market, often a result of uneven buying and selling activity. The underlying concept of FVGs is that the market tends to revisit these inefficiencies before resuming its trajectory in alignment with the initial impulsive move.

After the formation of a CHoCH traders can enter a position when the price enters the area of a Fair Value Gap (FVG).

🔹Setup Examples

This entry setup is commonly used by ICT traders and is shared for informational & educational purposes only.

Long Positions (5-Minute Timeframe):

• Wait for the previous session's low to be swept.
  
• Look for a Bullish Choch.
  
• Find a Bullish FVG formed by or before the Choch.
  
• Entry Point: At the FVG.
  
• Take Profit (TP): At the session high or aim for a 1:2 Risk-Reward Ratio.
  
• Stop Loss (SL): At the session low or nearest Swing Low.
  
• Take partial profits at intermediate swings, but don’t shift SL prematurely.
  

Short Positions (5-Minute Timeframe):

• Wait for the previous session's high to be swept.
  
• Look for a Bearish Choch.
  
• Find a FVG formed by or before the Choch.
  
• Entry Point: At the FVG.
  
• Take Profit (TP): At the previous session's low or aim for a 1:2 RR.
  
• Stop Loss (SL): At the session high or nearest Swing High.
  
• Take partial profits at intermediate swings, but don’t shift SL prematurely.
  

🔶 SETTINGS

🔹Session Sweeps

• Buyside Sweep Zones, Color, and Margin: toggles the visibility of bullside sweep zones, customizes the associated color, and sets the margin value defining the range of a bullside sweep zone.
  
• Sellside Sweep Zones, Color, and Margin: toggles the visibility of sell-side sweep zones, customizes the associated color, and sets the margin value defining the range of a sell-side sweep zone.
  
• Sweep Margin Length: specifies the maximum allowed length of a sweep zone invalidation, the length over which the price slightly invalidated the margin range.
  
• Detect Sweeps Once per Session: if enabled will detect only once a sweep zone within a session.
  
• Hide Fake Sweep Zones, and Color: controls the visibility and color of the fake sweep zones.
  

🔹Sessions

• Session (Asia, London, New York AM, and New York PM), Start Time, and End Time: enables or disables the visibility of the named market session range, and customization of the session hours.
  
• Color: color customization option of the named session.
  
• Extend Max/Min: extends the highest and lowest price levels of the named session until the end of the next enabled session. This option is recommended to be enabled when sweep zone detection is activated to observe the relationship between the sweep zone and previous session extreme levels.
  
• Extend Mid: extends the mean price levels of the named session until the end of the next enabled session. The extended line may serve as potential support and resistance levels.
  
• Fill: enables/disables background coloring of the named session.
  
• New York DST | London DST: enabling this option initiates Daylight Saving Time (DST) for New York or London. Note: Daylight Saving Time is not applied to the Asian (Tokyo) session.
  
• Sessions Extreme Lines | Sessions Names: toggles the visibility of the highest and lowest price levels, as well as the names, for all market sessions.
  
• Session Lines Width: sets the width of the lines for all sessions.
  
• Session Fill Transparency: sets the background color transparency of the range for all sessions.
  

🔹Market Structure Shifts

• Market Structure Shifts: toggles the visibility of market structure shifts, also known as change of character (CHoCH).
  
• Detection Length: specifies the detection length.
  
• Market Structure Shifts; Bull & Bear: color customization options.
  

🔹Fair Value Gaps

• Fair Value Gaps: toggles the visibility of the fair value gaps.
  
• Fair Value Gap Width Filter: specifies the filtering multiplier; additional details can be found in the tooltip of the respective input option.
  
• Bullish & Bearish Imbalance: color customization options.
  

🔹Sessions Tabular View

• Sessions Tabular View: toggles the visibility of the tabular view of the sessions, displaying date &time, status, and countdown counter.
  
• Hide if not Forex Market Instrument: checks the market and automatically enables/disables the option based on the market instrument.
  
• Table Text Size & Position: size and placement customization options
  

🔶 LIMITATIONS

Please be aware that fair value gap filtering cannot be applied to the initial 144 candles (with a fixed-length ATR) as the ATR value necessary for filtering won't be available during this period.

🔶 RELATED SCRIPTS

Buyside-Sellside-Liquidity
Sessions
Liquidity-Voids-FVG

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