IRON-SIGHT-V2 — Reference Guide

Overview

IRON-SIGHT-V2 is an ICT / Smart Money Concepts (SMC) based reversal strategy targeting the 8AM–9AM New York session manipulation range. It identifies when institutional players sweep liquidity at key levels, then enters on an Inverted Fair Value Gap (IFVG) confirmation as price reverses.

The strategy is structured as three named subsystems: OVERWATCH (HTF data), VANGUARD (execution engine), and SENTINEL (risk management), reflecting a modular, ops-style architecture.

OVERWATCH

HTF Telemetry
Prev Day H/L · 1H Data

VANGUARD

Execution Engine
Long & Short Entries

SENTINEL

Risk Management
TP / SL Exits

Session Timeline (New York Time)

8:00 AM — Range Opens

Script begins tracking the 8AM manipulation range. Every bar during this hour updates the range high and low.

9:00 AM — NY Cash Open / Range Closes

8AM range is locked. VANGUARD execution window opens. The strategy monitors for liquidity sweeps above/below the captured range.

9:00 AM – 12:00 PM — Active Trading Window

All entry conditions are evaluated here. No new entries are permitted after 12PM.

12:00 PM — Window Closes

No new positions initiated. Open positions managed by SENTINEL until TP or SL is hit.

Timezone Setting All times are in America/New_York. This is configurable via the Mission Timing input group. Ensure your chart timezone matches or the session hours will be offset.

Core Concepts Explained

8AM Manipulation Range

The hour from 8AM–9AM NY is commonly used by institutional traders to manipulate price — sweeping above prior highs or below prior lows to trigger retail stop orders and build liquidity. The script captures the full high-to-low range of this hour and plots it as cyan lines on the chart.

Liquidity Sweep Detection

A high sweep occurs when price crosses above the previous day's high or the 8AM range high. A low sweep occurs when price crosses below the previous day's low or the 8AM range low. These events are marked with triangle shapes on the chart.

Inverted Fair Value Gap (IFVG)

A Fair Value Gap (FVG) is a 3-bar imbalance where candle 1 and candle 3 do not overlap. An Inverted FVG (IFVG) occurs when price re-enters that gap from the opposite side — signaling that the original imbalance has been "filled" and a reversal is likely.

Type	Original FVG	IFVG Signal	Bias
Bullish IFVG	Bearish gap (high[0] < low[2])	Price closes back above that gap	Long
Bearish IFVG	Bullish gap (low[0] > high[2])	Price closes back below that gap	Short

Entry & Exit Logic

Long Entry — VANGUARD_LONG

Can Trade
(9AM–12PM)

+

Low Swept
(prior bar)

+

IFVG Long
confirmed

→

BUY
VANGUARD_LONG

Short Entry — VANGUARD_SHORT

Can Trade
(9AM–12PM)

+

High Swept
(prior bar)

+

IFVG Short
confirmed

→

SELL
VANGUARD_SHORT

One Position at a Time Entries are only placed when strategy.position_size == 0. The strategy will not add to an existing position or flip directly from long to short without first being flat.

SENTINEL — Risk Management

Parameter	Default	Description
Take Profit	400 ticks	Distance in ticks from entry to TP. Adjust for your instrument's tick size.
Stop Loss Buffer	50 ticks	Distance in ticks from entry to SL. Tight by design — the sweep/IFVG setup has a defined invalidation point.
Exit Comment	"TP/SL Hit"	Label shown in strategy tester when position closes

Tick Size Calibration Required The TP (400 ticks) and SL (50 ticks) default values are instrument-agnostic. You must calibrate these to your specific market. For example, on ES futures (0.25 tick = $12.50), 400 ticks = 100 points. On NQ, the same tick count represents a very different dollar value. Always verify in the Strategy Tester before going live.

Higher Timeframe Data — OVERWATCH

Data Source	Variable	Usage
Previous Day High	`prev_day_high`	Liquidity sweep detection — high sweep triggers short bias
Previous Day Low	`prev_day_low`	Liquidity sweep detection — low sweep triggers long bias
1H Highs/Lows	`htf_high / htf_low`	Fetched via request.security("60") — available for future order block logic

Note on lookahead_on Previous day data uses barmerge.lookahead_on to ensure the prior day's high/low is available at the start of the current session. This is correct for live trading but may create minor bias in backtesting on historical data. Results should be validated on live/paper.

Chart Visuals

Element	Style	Description
8AM Range High	Cyan dashed line	Upper boundary of the 8AM manipulation range
8AM Range Low	Cyan dashed line	Lower boundary of the 8AM manipulation range
High Sweep marker	Red triangle (above bar)	Marks bars where a high-side liquidity sweep occurred
Low Sweep marker	Green triangle (below bar)	Marks bars where a low-side liquidity sweep occurred
Entry markers	TradingView default	Strategy engine auto-marks long/short entries in the tester

Alert Messages — JSON Payload

V2 sends separate payloads for long and short entries, with richer metadata than V1:

Long Entry (BUY)

{
  "model_id":   "IRON-SIGHT-V2",
  "action":     "BUY",
  "tier":       "8AM_REVERSAL",
  "liquidity":  "Low_Sweep",
  "note":       "IFVG Confirmed"
}

Short Entry (SELL)

{
  "model_id":   "IRON-SIGHT-V2",
  "action":     "SELL",
  "tier":       "8AM_REVERSAL",
  "liquidity":  "High_Sweep",
  "note":       "IFVG Confirmed"
}

Field	Description
`model_id`	Routes alert to correct handler in downstream system
`action`	BUY or SELL — direction of the trade
`tier`	Strategy classification — 8AM_REVERSAL
`liquidity`	Which side was swept (Low_Sweep → Long, High_Sweep → Short)
`note`	Confirmation type — always "IFVG Confirmed" in V2

All Configurable Inputs

Group	Parameter	Default	Notes
Mission Timing	8AM Range Start Hour	8	Hour in NY time when range tracking begins
Mission Timing	8AM Range End (NY Open)	9	Hour when trading window opens and range locks
Mission Timing	Timezone	America/New_York	Must match your target session
Execution Logic	Require IFVG for Entry	true	If false, VANGUARD enters on sweep alone (less selective)
Execution Logic	Take Profit (Ticks)	400	Calibrate to your instrument's tick value
Execution Logic	Stop Loss Buffer (Ticks)	50	Tight SL — assumes precise entry on IFVG confirmation

TradingView Setup

Open a chart on your target instrument. Recommended: 5-minute or 15-minute chart for intraday 8AM setups.
Open Pine Editor (Alt+P), clear existing code, paste Iron_sight_v2.pine, click Add to chart.
In the indicator settings (⚙️), verify the timezone is America/New_York and adjust TP/SL ticks for your instrument.
Open the Strategy Tester tab to review backtest performance before going live.
To activate alerts: hover over indicator name → ··· → Add alert.
The alert will fire separately for long and short entries, each with its own JSON payload.
Set Webhook URL if routing to NIGHTHAWK or another automation endpoint.