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FXSnipers Quantitative Desk Series

Multi-Timeframe Liquidity Grab Strategy

Forex • XAUUSD, EURUSD, GBPUSD • M5 • Liquidity Sweep
London/New York Overlap
07:00 - 16:00 UTC
Complexity: Advanced
Max Risk 0.5% maximum equity risk per trade.
Target R:R Minimum 1:3 R:R target with 30% partial execution at 1:1 R:R.
Break-Even Trigger Move stop-loss to breakeven immediately after the 30% partial is taken at 1:1 R:R.
Automation Semi-automated

Pre-Trade Verification Checklist

Map Higher Timeframe Levels: Identify and plot Previous Day High/Low and Previous Week High/Low.
Wait for H1 Sweep and Rejection: Ensure price spikes past the level and forms an H1 candle closing back inside with a >= 50% wick.
Drop to M5 Timeframe: Switch to the 5-minute chart to monitor lower timeframe order flow and structure shifts.
Identify M5 Break of Structure (BOS): Wait for a clear break of the most recent micro swing point in the direction of the reversal.
Execute Trade with Defined Risk: Enter with 0.5% risk, stop loss beyond the wick, and structured 1:3 R:R targets.

Entry Execution Criteria

  1. Identify and map Previous Day High/Low (PDH/PDL) and Previous Week High/Low (PWH/PWL) on the daily and weekly charts.
  2. Wait for an H1 candle to sweep (wick through) one of these liquidity levels and close back inside the level, ensuring the rejection wick is at least 50% of the total H1 candle range.
  3. Drop to the M5 chart and enter on the first break of structure (BOS) in the opposite direction of the sweep (e.g., lower high/break of minor low for short setups after a PDH sweep).

Take-Profit & Target Exit

  • Take 30% partial profit off the table when trade reaches 1:1 risk-to-reward (R:R).
  • Manage the remaining position toward the next major opposing liquidity pool, targeting a minimum of 1:3 R:R overall.

Invalidation & Emergency Exit

  • If the H1 candle sweeping the liquidity level closes outside rather than rejecting back inside, the setup is immediately voided.
  • If price violates the extreme wick of the sweep before an M5 BOS occurs, the trade idea is invalidated.
Stop-Loss Positioning

Strictly placed beyond the extreme tip of the sweep wick on the H1/M5 chart plus a small buffer for spread.

Documented & Formatted by FXSnipers Strategy Lab • fxsnipers.com/strategy-lab/multi-timeframe-liquidity-grab-strategy
Desk Cheat Sheet Specification v1.0