Golden Sweep - ZTF

Golden Sweep - ZTF: Multi-Confluence Reversal Detection System

Purpose & Methodology:

The Golden Sweep combines six distinct market structure analysis methods into a unified confluence system designed to identify high-probability reversal points at inverse Fair Value Gaps (iFVGs). Rather than relying on single-indicator signals, this system requires simultaneous confirmation across multiple independent market dimensions to filter out noise and reduce false signals.

Core Logic & Technical Approach:

1. Fair Value Gap Analysis Foundation
The system begins by detecting standard Fair Value Gaps (price inefficiencies where gaps exist between candle wicks) and monitors when price returns to fill these gaps, creating inverse FVGs. This forms the base signal trigger.

2. Liquidity Sweep Confirmation Engine
Uses pivot-based swing detection to identify when price has recently swept through key support/resistance levels, indicating stop-loss hunting activity. The algorithm tracks recent liquidity events within a configurable lookback period and correlates them with iFVG formations.

3. VWAP Statistical Positioning
Calculates real-time Volume Weighted Average Price with standard deviation bands. Signals are only validated when price is positioned at statistically significant VWAP deviations (configurable zones), ensuring alignment with institutional flow patterns.

4. Balanced Price Range (BPR) Structure Analysis
Detects overlapping bullish and bearish Fair Value Gaps that create consolidation zones. The system identifies when new iFVGs form within or near these balanced ranges, indicating potential breakout reversals from established accumulation/distribution areas.

5. Turtle Soup Reversal Pattern Recognition
Implements Larry Connors' turtle soup methodology to detect false breakouts. Identifies when price penetrates recent highs/lows but closes back within the prior range, indicating failed breakout attempts that often precede strong reversals.

6. Exhaustion Signal Detection
Employs dual-timeframe momentum analysis using Williams %R methodology with optimized smoothing parameters. Detects overbought/oversold exhaustion conditions and confirms when momentum shifts from extreme readings back toward equilibrium, indicating potential trend exhaustion reversals.

Confluence Requirement Logic:

A Golden Sweep signal only triggers when ALL enabled filters simultaneously confirm within their respective lookback periods. This six-dimensional approach significantly reduces signal frequency while increasing reliability by ensuring multiple market forces align before generating alerts.

Session & Timing Integration:

Incorporates session-based filtering to account for varying market dynamics across trading sessions (NY Open, London Close, etc.), as different sessions exhibit distinct liquidity and volatility characteristics.

Implementation Notes:

All calculations use confirmed bar data to prevent repainting

Configurable lookback periods allow adaptation to different timeframes and market conditions
Visual overlays are optional and independent of signal generation logic
Built-in risk management through signal rarity and confluence requirements

This systematic approach addresses the common problem of indicator overload by creating a structured framework where multiple analysis methods must agree before signaling, resulting in fewer but higher-quality trade opportunities.

⚠️ Disclaimer: This indicator is for educational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. Trading involves risk — always do your own research and use proper risk management.