ICT Liquidity Pools SSL BSL

Parent Swings - ICT Liquidity Pools (BSL & SSL)
This indicator is designed to cut through the noise of the market and identify truly significant swing points. Instead of marking every minor high and low, it uses the powerful logic of ICT (Inner Circle Trader) breaker patterns to validate and draw only the "Parent Swings" that matter. These are the key liquidity pools that often act as the market's next target.

The Concept: Price Moves from Pool to Pool
A core concept taught by ICT is that price doesn't move randomly; it moves with purpose. The market is engineered to move from one pool of liquidity to the next.

Buy Side Liquidity (BSL): This is a pool of stop-loss orders resting just above a significant swing high. The market is often drawn upwards to "sweep" this liquidity.

Sell Side Liquidity (SSL): This is a pool of stop-loss orders resting just below a significant swing low. The market is often drawn downwards to sweep this liquidity.

This indicator identifies these key BSL and SSL levels after they have been confirmed by a shift in market structure, giving you a clear map of potential targets.

How It Works
The indicator doesn't just look for any swing high or low. It waits for a specific sequence of events to confirm that a swing is a "Parent Swing" and a valid liquidity pool:

Liquidity Sweep: First, it looks for a classic liquidity raid. For a significant high (BSL), it needs to see a swing high get taken out by a higher high. For a significant low (SSL), it needs to see a swing low get taken out by a lower low.

Market Structure Shift (MSS): After the liquidity sweep, the indicator waits for confirmation that the market's intention has changed. This happens when price breaks aggressively in the opposite direction, creating a breaker block pattern.

Confirmation: Only when both the liquidity sweep and the market structure shift are confirmed does the indicator draw the line, marking the swing as a valid BSL or SSL level.

How to Use This Indicator
The primary use for this indicator is to identify targets. Once a BSL (red line) or SSL (green line) is established, you can anticipate that the market will eventually make a run for that level.

If you are in a long position, the next BSL line above you can serve as a logical take-profit target.

If you are in a short position, the next SSL line below you can serve as a logical take-profit target.

The labels (BSL/SSL) will always stay with the current price action for active levels, making it easy to see your targets at a glance.

Settings

Pivot Lookback: Controls the sensitivity of the swing detection. A higher number will find larger, more significant liquidity pools.

Invalidation Threshold (Crossings): This is a key feature. It sets how many times the price must cross through a liquidity level before it's considered "used up" or invalidated. Once invalidated, the line will dim and the label will disappear, keeping your chart clean.

Disclaimer: This is a tool for technical analysis and should not be considered financial advice. Always use proper risk management and integrate this indicator with your own trading strategy.