Majors Liquidity FadePro

Liquidity Fade + NY Continuation

Institutional-Grade Trading Framework for New York Session Order Flow

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Core Logic

Purpose:This indicator exploits the two-phase structure of the New York session — early liquidity sweeps (fakeouts) followed by momentum continuations aligned with institutional order flow.

1. Liquidity Fade (8:00–10:30 AM ET)

   • Detects stop hunts beyond Asian/London highs or lows.

   • Looks for weak momentum and wick dominance to confirm fading exhaustion.

   • Entry bias is counter-trend for quick mean reversion.

2. Continuation Phase (10:30 AM–2:00 PM ET)

   • Once early liquidity is absorbed, the algorithm looks for price reclaiming VWAP or breaking a minor structure.

   • It then signals trades in direction of higher timeframe bias.

   • This captures institutional trend continuation during peak U.S. volume.

Result:Two distinct opportunities per NY session:

• Fade setups exploit false breaks.

• Continuation setups ride institutional expansion.

🧩 Bias Filters & Context Alignment

Filter	Description	Purpose
H1 20 EMA	Determines short-term directional bias.	Prevents counter-bias entries.
HTF Filter (H4 & Daily)	Confirms alignment using 200/20 SMA and 50 SMA.	Matches trades with macro direction.
DXY Strength Check	Optional confirmation (USD trending).	Adds macroeconomic correlation logic.
VWAP Mean Deviation	Measures institutional value zones via session VWAP ±σ.	Detects overextensions and reversions.

🧰 Protection Mechanisms

Mechanism	Function	Why It Matters
Session Gating	Limits entries to NY liquidity windows (8:00–14:00 ET).	Avoids low-volume fakeouts.
ADR Guard	Disables signals if intraday range > 1.5× ADR.	Filters out overextended or news-driven days.
CVD Divergence	Confirms price–volume divergence at liquidity grabs.	Detects fake moves and exhaustion.
Small Body + Wick Confirmation	Ensures trap candle characteristics before signaling.	Increases fade accuracy.
RSI Confirmation (5m)	Confirms momentum shift (above/below 50).	Adds order-flow timing filter.
News Safety Toggle	Manually pause entries pre-FOMC/NFP/etc.	Prevents false signals from macro spikes.

🧭 How to Read the Chart

Symbol	Meaning	Typical Action
🔺 Green Triangle	Fade Long (after sweep of low)	Countertrend buy scalp
🔻 Red Triangle	Fade Short (after sweep of high)	Countertrend short scalp
🟢 Green Circle	Continuation Long	Trend-following buy
🔴 Maroon Circle	Continuation Short	Trend-following sell

🧮 Dashboard Table

Displayed bottom-left (configurable):

Field	Description
Bias (H1/HTF/DXY)	Combined directional bias
VWAP Location	Price relative to VWAP ±σ bands
CVD Divergence	Shows bullish/bearish exhaustion signals
ADR Guard	Indicates if volatility protection is active
Session Gate	Current active phase (Pre-NY, Fade, Cont)
Fade Signals / Continuation	Live signal status
News Safety	Trading state toggle (Active/Paused)

⚙️ Best Practices

✅ Trade the NY session only.The logic is calibrated for U.S. market liquidity between 8:00–14:00 ET.

✅ Check higher-timeframe alignment.Only take trades aligned with HTF bias and VWAP position.

✅ Use 0.5% or less risk per trade.Combine with external execution rules (e.g., partials at VWAP return, full close at ADR midpoint).

✅ Avoid high-impact news.Pause News Safety manually around CPI, FOMC, or NFP.

✅ Prioritize confluence.Best trades occur when:

• Fade aligns with CVD divergence + wick dominance.

• Continuation aligns with VWAP reclaim + RSI > 50 (for longs).

✅ Ideal pairs:EUR/USD, GBP/USD, XAU/USD, and NASDAQ (US100 CFD).Avoid exotic or illiquid pairs.

🧭 Summary Formula

Institutional Flow = (Bias Alignment) × (Liquidity Sweep) × (Confirmation Signals) When all three align, the setup is statistically favorable.