CandelaCharts - Liquidity Key Zones (LKZ)

22 feb

📝 Overview

The Liquidity Key Zones indicator displays the previous high and low levels for daily, weekly, monthly, quarterly, and yearly timeframes. These levels serve as crucial price zones for trading any market or instrument. They are also high-probability reaction zones, ideal for trading using straightforward confirmation patterns.



Each of these levels plays a significant role in determining whether the market continues its momentum or reverses its bias. I like to think of these levels as dual magnets—they simultaneously attract and repel price. You might wonder how having opposing views can be useful. The key is to remain neutral about direction and establish your own rules to identify when these zones are likely to attract or repel price. I have my own set of rules, and you can develop yours.

📦 Features

• MTF
  
• Styling
  

⚙️ Settings

• Day: Shows previous day levels
  
• Week: Shows previous week levels
  
• Month: Shows previous month levels
  
• Quarter: Shows previous quarter levels
  
• Year: Shows previous year levels
  
• Show Average: Shows previous level average price
  
• Show Open: Shows previous level open price
  

⚡️ Showcase

Daily

Weekly

Monthly

Quarterly

Yearly

Average

Open


📒 Usage

When the price breaks through a significant level, such as a daily, weekly, or monthly high or low, it often signals a potential reversal in market direction. This occurs because these levels represent key areas of support or resistance, where traders anticipate heightened activity, including profit-taking, stop-loss orders, or new positions being initiated.



Once the price breaches these levels, it may trigger a sharp reaction as market participants adjust their strategies, leading to a reversal. Monitoring price action and volume around these levels can provide valuable confirmation of such reversals.

Another effective approach to utilizing these pivot points is by incorporating them into a structured trading strategy, such as the X Model, which leverages multiple timeframes and technical tools to refine trade entries and exits.

X Model conditions:

• [\*](D1) Previous Day High (ERL)
  [\*](H1) Bullish FVG/IFVG/OB (IRL)
  [\*](m15) MSS / SMT
  
• Only Short Above 00:00
  

By combining these elements, the X Model offers a comprehensive framework for leveraging pivot levels effectively, emphasizing confluence between liquidity zones, time-based rules, and multi-timeframe analysis to enhance trading accuracy and consistency.

🚨 Alerts

This script provides alert options for all signals.

Bearish Signal

A bearish signal is generated when the price breaks below the previous low level.

Bullish Signal

A bullish signal is generated when the price breaks above the previous low level.

⚠️ Disclaimer

Trading involves significant risk, and many participants may incur losses. The content on this site is not intended as financial advice and should not be interpreted as such. Decisions to buy, sell, hold, or trade securities, commodities, or other financial instruments carry inherent risks and are best made with guidance from qualified financial professionals. Past performance is not indicative of future results.

22 feb

Note di rilascio

CandelaCharts - Liquidity Key Zones 1.0.1

• Better organisation
  

28 mar

Note di rilascio

CandelaCharts - Liquidity Key Zones 1.0.2

• Rework the algorithm
  
• Bug fixing