Liquidity Sweep Guardian-NQ version

This indicator is only optimized for CME future NQ or MNQ. If you want to use for other product, adjust your own setting.

The indicator is used as a visual aid for warning trader do not fade trend before PDL or PDH liquidity sweep. The box wrapper around PDH and PDL is a warning box. Liquidity can be super thin when price is approaching the box, so do not fade the trend (counter trend trading when you are near the box before PDH or PDL sweep.

There is no universal strategy if you should go long or short when PDL or PDH is reached, but this indicator is designed for trader to avoid get caught when fading a trend that is going to sweep PDL or PDH.

example here





Here is the Full guide:


# Liquidity Sweep Guardian

## Overview

A visual warning system that helps traders avoid premature counter-trend entries near key liquidity levels (Previous Day High/Low). The indicator displays danger zones centered on PDH/PDL and tracks when these levels have been swept and reclaimed.

**This is a WARNING system, not a trade signal generator.**

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## The Problem It Solves

One of the most common trading mistakes:

> Price is falling toward PDL. You see a bullish candle 40 points above PDL and think "maybe it reverses here." You enter long. Price then accelerates DOWN, sweeps PDL, and your stop gets hit. The reversal you wanted happens AFTER the sweep—without you.

This indicator prevents that mistake by:
1. Showing you when you're in the "danger zone" near a key level
2. Warning you NOT to fade until the level has been swept
3. Unlocking fade consideration only AFTER sweep + reclaim

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## How It Works

### Danger Zone (Red Box)
- Centered on PDH and PDL
- Default: ±75 points (150 point total zone)
- When price is in this zone and the level hasn't been swept → **avoid counter-trend trades**

### Critical Zone (Inner Red Box)
- Tighter zone around the level
- Default: ±25 points
- Highest risk area for premature entries

### Sweep Detection
When price penetrates beyond the level:
- **SWEEP** (10-25 pts): Normal liquidity grab, watch for reclaim
- **EXTENDED** (25-50 pts): Deeper than typical, use caution
- **CONTINUATION** (50+ pts): Likely trend continuation, not a sweep

### Unlock Condition
**"🔓 LONG UNLOCKED"** or **"🔓 SHORT UNLOCKED"** appears when:
1. The level has been swept (price went beyond it)
2. Price has reclaimed back through the level
3. Sweep depth was NOT in continuation territory (50+ pts)

**UNLOCKED means you MAY now consider a fade setup. It is NOT an entry signal.**

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## Visual Elements

| Element | Description |
|---------|-------------|
| **Red Box** | Danger zone - avoid fading until swept |
| **Inner Red Box** | Critical zone - highest trap risk |
| **Green Box** | Zone is unlocked - sweep complete |
| **"SWEEP" Label** | Level has been penetrated |
| **"🔓 UNLOCKED" Label** | Sweep complete + reclaim - may consider fade |
| **"⚠️ CONTINUATION?" Label** | Deep penetration (50+ pts) - likely not a reversal |

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## Settings

### Danger Zone Settings
- **Danger Zone Size**: Distance above AND below level (default: 75 pts)
- **Critical Zone Size**: Inner high-risk zone (default: 25 pts)

### Sweep Classification
- **Real Sweep Min/Max**: Point range for normal sweep (default: 10-25 pts)
- **Fake Sweep / Continuation**: Depth that suggests continuation (default: 50 pts)
- **Max Bars for Reclaim**: How quickly price should reclaim (default: 5 bars)

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## How to Use

### ❌ DON'T
- Enter long when price is in PDL danger zone and PDL hasn't been swept
- Enter short when price is in PDH danger zone and PDH hasn't been swept
- Fade immediately when you see the "SWEEP" label
- Treat "UNLOCKED" as a buy/sell signal

### ✅ DO
- Wait for the SWEEP label before considering a fade
- Wait for the UNLOCKED label before looking for entry setups
- Use your own entry criteria AFTER unlock (consolidation, reclaim, patterns, etc.)
- Respect deep penetrations (50+ pts) as potential continuation, not reversal

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## The Core Concept

**Price often accelerates INTO liquidity sweeps.**

That bullish candle you see 40 points above PDL? It's often the last gasp before the sweep, not the reversal. Smart money needs to:
1. Sweep the lows (trigger stops)
2. Grab liquidity
3. THEN reverse

By waiting for the sweep + reclaim, you align with this flow instead of getting trapped.

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## Alerts

- **Entering Danger Zone**: Price entering PDH/PDL zone
- **Swept**: Level has been penetrated
- **Unlocked**: Sweep complete + reclaim
- **Deep Continuation**: 50+ point penetration warning

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## Best Practices

1. **Patience over prediction**: Don't anticipate the sweep—wait for it
2. **Unlock ≠ Entry**: Unlocked means you can START looking for setups
3. **Respect continuation**: 50+ point penetration often means trend continues
4. **Use with your system**: This is a filter/warning, not a strategy

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## Notes

- Designed for NQ/ES futures but works on any instrument
- Adjust point values for different instruments (e.g., ES uses smaller values)
- Session resets at 6PM ET (CME futures session)
- Works on any timeframe

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## Summary

> **Don't fade until swept. Don't enter until unlocked. Unlocked ≠ Entry signal.**

The indicator's job is to keep you OUT of bad trades, not get you INTO trades. Your job is to find quality entries AFTER the indicator gives you permission to look.

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*"The reversal you want comes AFTER the sweep. Every time. And when it doesn't? It wasn't a reversal—it was continuation. Either way, waiting was the right choice."*