Many liquidity sweeps do not lead to a good entry immediately. After a sweep is completed, the market often needs time to absorb orders, stabilize, and form a new balance area. Entering too early right after the sweep can easily expose traders to noise.
That is why this strategy does not enter as soon as LIQ Sweep Hunter gives a signal. Instead, the sweep signal is treated as a marker that:
Liquidity has just been triggered,
Stop losses have been swept,
The market may be transitioning into a new directional phase.
From there, we wait for Flex TPO to show that the market has formed an Initial Balance, meaning it has returned to a short-term balanced state. Only when price closes and breaks out of the Initial Balance do we consider it a valid entry.
Role of each indicator in the strategy
LIQ Sweep Hunter is designed to detect and confirm buy-side or sell-side liquidity sweeps only after the sweep has been completed, rather than signaling while the market is still hunting stops. Its logic follows a structured sequence: liquidity activation → sweep event → control shift → validated continuation or reversal.
Put simply, LIQ Sweep Hunter helps answer this question:
“Was that move just a stop hunt, or the beginning of a real directional move?”
Flex TPO focuses on how the market behaves after the sweep. It follows a structure of Initial Balance → Value → Break → Retest, where the Initial Balance represents a temporary balance area between buyers and sellers. As long as price remains inside this zone, the market is still balanced. Only when price closes outside the Initial Balance does it signal that the market is starting to move out of balance with clearer direction.
In this strategy, Flex TPO helps answer this question:
“After the sweep, has the market stabilized, and which Break is actually worth following?”
Entry setup guide
Buy signal
- Step 1: Wait for LIQ Sweep Hunter to confirm that a sell-side sweep has been completed.
- Step 2: Wait for Flex TPO to form a new Initial Balance, showing that the market is rebalancing.
- Step 3: When price closes above the Initial Balance, enter a Buy trade on the Flex TPO Break signal.
- Step 4: Place the stop loss below the sweep zone or below the nearest structure.
Sell signal
- Step 1: Wait for LIQ Sweep Hunter to confirm that a buy-side sweep has been completed.
- Step 2: Wait for Flex TPO to form a new Initial Balance.
- Step 3: When price closes below the Initial Balance, enter a Sell trade on the Flex TPO Break signal.
- Step 4: Place the stop loss above the sweep zone or above the nearest structure.
Victor Dan / Trader at ninZa.co
