Session Liquidity

Overview

The Session Liquidity strategy capitalizes on a well-known institutional behavior: price tends to sweep session highs and lows to trigger stop losses before reversing. By detecting these sweeps in real-time, VECTRA enters in the reversal direction with high probability.

• Category: Session-Based

• Timeframe: Single (5m)

• Best Regime: Trending and Ranging

• Typical Hold Time: 1-3 hours

• Min Confidence: 0.70

1

How Liquidity Sweeps Work — Step 1

During a trading session, price establishes a high and a low.

2

How Liquidity Sweeps Work — Step 2

Stop losses from short traders cluster just above the session high.

3

How Liquidity Sweeps Work — Step 3

Stop losses from long traders cluster just below the session low.

4

How Liquidity Sweeps Work — Step 4

Institutional players push price through these levels to trigger the stops.

5

How Liquidity Sweeps Work — Step 5

After collecting the liquidity, price reverses to the true direction.

Detection Logic

Bullish Sweep (Long Entry):

• Price wick goes below the recent 20-bar low

• Current candle CLOSES back above that low

• This "sweep and reclaim" pattern indicates the stops were hunted and exhausted

Bearish Sweep (Short Entry):

• Price wick goes above the recent 20-bar high

• Current candle CLOSES back below that high

Additional Confirmations

• Order Flow must confirm the reversal direction

• Liquidation level estimation provides intelligent TP placement

• Regime filter blocks signals in VOLATILE and TRANSITIONING regimes

• Session identification provides context (London/NY opens have strongest sweeps)

• ATR zero/NaN guard prevents invalid SL placement