Liquidity POI Reversal Strategy – Structure, Origin and Retest

EA LAB / STRUCTURE & POI / EA019

Liquidity POI Reversal

Read the structure.
Mark the origin.
Wait for the return.

A structure break creates the context. The opposite-color origin candle defines the point of interest. A return to that zone creates the opportunity; a mechanical entry rule makes the decision.

EA019 conceptual neon structure break, POI retest and entry

The idea: context before a trade

After price breaks a confirmed swing, traders often watch the area from which that move originated. Instead of chasing the impulse, this framework waits for price to return to a defined POI. The aim is a clear relationship between structure, entry and initial risk.

EA019 implements that idea with closed-bar pivot breaks, a preceding opposite-color candle and three entry modes. The supplied configuration uses H1 structure, body-only POI and a completed-candle rejection. The factory defaults differ: M15, full-candle POI and first touch.

The inspiration is broader than the code. Hand-drawn liquidity diagrams may show SWEEP, MSS or FVG. EA019 v1.01 does not require separate sweep, MSS-sequence, FVG, session, moving-average or news filters. Its actual conditions are described below.

1 / Confirm the structure break

The robot finds the most recent strict confirmed swing high and swing low inside its history scan. With Pivot Wing = 3, each candidate must be strictly higher or lower than three bars on either side. Equal highs/lows do not qualify. Both pivot directions must be available before a new zone can be detected.

BUY CONTEXT

Break above the swing high

The last closed structure bar crosses above the confirmed swing high plus the minimum break distance; the previous bar must not already have crossed it. The same remembered high is not used again.

SELL CONTEXT

Break below the swing low

The last closed structure bar crosses below the confirmed swing low minus the minimum distance; the previous bar must not already have crossed it. SELL mirrors the BUY process.

The preset requires a close beyond the threshold. Optional wick mode uses the high/low of a closed bar, not an unconfirmed current candle. The preset threshold is 80 broker points.

2 / Define a POI from the origin candle

For BUY, search backwards from two bars ago for the nearest bearish candle; for SELL, use the nearest bullish candle. The origin precedes the break bar. The preset searches eight bars and accepts zone widths from 90 to 1200 points.

TYPE	BUY	SELL
Full candle	Origin low to high	Origin low to high
Body – supplied preset	Minimum open/close to maximum open/close	The same body-only range
Half candle	Lower half of full origin range	Upper half of full origin range

One current zone is stored. A valid new zone replaces the old one, including during an open position. Expiry is elapsed time from the break-bar timestamp: 32 H1 durations in the preset. Market closures can consume that lifetime. Optional close-based invalidation removes BUY after a close below the far edge or SELL above the far edge; it is disabled in the supplied preset.

3 / Wait for the selected entry

MODE	BUY	SELL
First touch	Ask inside the zone	Bid inside the zone
Midpoint touch	Ask in the lower half	Bid in the upper half
Close rejection – supplied preset	Later closed candle overlaps the zone, closes above its upper edge and closes above open	Later closed candle overlaps the zone, closes below its lower edge and closes below open

The break candle cannot also be the subsequent rejection. In rejection mode the order is placed at the current market quote after confirmation, so BUY may enter above the POI and SELL below it. It is not a limit order at the historical touch price.

4 / Set the risk and target

BUY stop is below the zone low minus the buffer; SELL stop is above the zone high plus the buffer. The preset adds 110 points and sets TP at four times the entry-to-initial-SL distance. The source default is 2R. There is no trailing stop, break-even or opposite-structure exit in this release.

The example sizes each order using 3% of current balance, then rounds volume down to the broker step. Fixed lot is an alternative. Spread, broker stop limits, margin, volume restrictions, trading permissions and licensing can prevent a valid pattern from becoming an order.

One position does not mean one lifetime attempt. The preset disables One Trade Per Zone. After a position closes, another qualifying entry may be accepted while the zone remains eligible. The same closed rejection candle cannot be traded twice. Zone state is held in memory; do not assume it survives terminal restart.

Three POI setups, drawn step by step

Line-and-zone diagrams make the structure easier to read before studying the actual tester charts. These illustrations are inspired by the owner-supplied POI concept references and adapted to EA019’s mechanical rules. They are schematic, not to scale and not historical transactions.

01 / BUY: break, return, confirmation

EA019 illustrative BUY: previous swing high break, origin POI, retest, closed-bar confirmation and subsequent market entry — A break above the previous confirmed high creates a BUY POI from the preceding bearish origin candle. Price returns into the zone; a later bullish candle closes above its upper edge. In close-rejection mode, the market entry follows confirmation and can be above the zone. Initial SL is beyond the lower edge plus the buffer; TP is a configured RR multiple. Illustration only.

02 / SELL: mirror the BUY rules

EA019 illustrative SELL: previous swing low break, bullish-candle origin POI, retest and bearish close confirmation — A break below the previous confirmed low creates a SELL POI from the preceding bullish origin candle. A return is followed by a bearish candle closing below the lower edge. The market SELL uses the current Bid; its protective SL sits above the zone plus the buffer. The red structure path shows the mirror of the BUY concept. Illustration only.

03 / A stopped attempt and a later re-entry

EA019 illustrative BUY loss at SL followed by a later qualifying POI rejection and a separate entry — The first BUY can hit SL. With One Trade Per Zone=false and close-based invalidation=false, as in the supplied preset, a later rejection can qualify while the same zone remains eligible. A new entry follows the prior position’s close; this is not simultaneous pyramiding. The later TP is an illustrative outcome, not a promise that a retry wins.

Five original MT5 examples

These are owner-supplied GBPUSD.pro H1 v1.01 historical tester screens, cross-checked against the full order/deal report. They show completed wins, losses, a temporarily profitable loser and a stored setup. The artwork above is illustrative.

01 / BUY: a complete move to TP

02 / A loss, then another qualifying BUY

03 / A profitable snapshot can still become a loss

04 / SELL SETUP: the zone is only the context

05 / SELL: the report confirms the target

How to test this framework

Load the supplied H1 SET and run a single real-tick test first. Confirm the actual inputs; informational BACKTEST INFO text does not change them.
Keep risk fixed when comparing configurations. Study entry mode, zone type, pivot wing and break distance in small groups.
For staged searches, set Apply Optimization Ranges=false. With true, the robot applies its built-in ranges at optimization start.
Select Custom max to use Smooth Equity ranking. Default gates require at least 40 trades and maximum relative equity DD of 35%; this is not a live drawdown stop.
Reserve an untouched forward period, inspect nearby settings and test another broker’s costs before considering live use.

Download user manual (PDF)

Historical results do not guarantee future performance. Trading can lose capital. Configuration and risk are selected by the user. Support: ea@ea-lab.dev.