← Back to Interactive Strategy Lab
FXSnipers Quantitative Desk Series

Asian Session Liquidity Sweep & FVG Reversal Strategy

Commodities • XAUUSD • M5 • Liquidity Sweep
London Open
07:00 - 09:00 UTC
Complexity: Advanced
Max Risk Maximum 0.5% - 1.0% of total trading account equity per execution.
Target R:R Dynamic 1:2 to 1:3.5 Risk-to-Reward ratio with partial scaling at 1:1.5.
Break-Even Trigger Move Stop Loss to entry price plus transaction costs immediately when trade reaches +1R.
Automation Rule-dependent

Pre-Trade Verification Checklist

Asian Range Defined: Verify the high and low of the session between 00:00 and 06:00 UTC are clearly mapped.
London Open Sweep: Confirm price breaks the Asian High or Low after 07:00 UTC.
Market Structure Shift: Observe an aggressive reversal breaking recent internal swing structure.
Fair Value Gap Formed: Locate an active, unmitigated 3-candle imbalance (FVG) supporting the reversal.
Risk Parameters Set: Ensure stop-loss is outside the sweep extreme and reward is at least 2x risk.

Entry Execution Criteria

  1. Step 1: Mark the absolute High and Low of the Asian session defined from 00:00 to 06:00 UTC.
  2. Step 2: Wait for the London open window (07:00 UTC onwards) for price to cleanly break and sweep either the Asian High or Asian Low.
  3. Step 3: Wait for a sharp Market Structure Shift (MSS) breaking the immediate internal swing structure in the opposite direction of the sweep.
  4. Step 4: Identify an unmitigated Fair Value Gap (FVG) formed during the impulsive MSS move.
  5. Step 5: Enter a limit order upon a retracement into the detected FVG zone.

Take-Profit & Target Exit

  • Take Profit 1: Set at the midpoint (equilibrium) or the opposite boundary of the Asian session range for a partial take-profit (50%).
  • Take Profit 2: Set at the opposing external liquidity pool (opposite daily high/low or major structural level) for the remaining position.
  • Trailing stop or scale-out rules: Once price reaches +1R, move the stop-loss to break-even and close 50% of the position.

Invalidation & Emergency Exit

  • The setup is voided if price sweeps the Asian high or low but fails to produce a clear Market Structure Shift within 12 candles.
  • Emergency exit is triggered if price continues strong momentum past the sweep candle without rejection, breaking through the structural confirmation point.
Stop-Loss Positioning

Placed 2-3 dollars (or ATR buffer) beyond the extreme wick of the liquidity sweep high/low.

Documented & Formatted by FXSnipers Strategy Lab • fxsnipers.com/strategy-lab/asian-session-liquidity-sweep-fvg-reversal
Desk Cheat Sheet Specification v1.0