Liquidity Pool - TradingED
Key components:
• Follow the liquidity levels, as they are going to attract the price sooner or later.
• Never open positions opposite to a liquidity level’s direction.
• During the price movement towards a liquidity level, there appears a high probability to cross that level.
• When a liquidity level is crossed, the reversal movement is quite a frequent consequence, as major players are not interested in a level anymore.
When support and resistance levels are held for a long time, the highest liquidity is cumulated above or below those levels, so this is why "Liquidity pools" occur around key support and resistance, or areas on the chart where a lot of trading activity takes place. If you trade, you need this trading activity to get your order filled. Most retail traders don’t have to worry about liquidity when it comes to getting filled. In fact, even some professional swing or trend traders may not have to worry about it. A string of order types cumulates an asset’s liquidity there. This is why investors drive prices into those areas, creating new liquidity levels.
Main functions of this indicator:
1) The SOURCE for the counts can be determined by the trader (close, open, etc).
2) The MEASURE can be based on a CANDLES count if you are trading OHLC Charts from 1D onwards, or if your trading is intraday, you can also select counts by MINUTES, HOURS or DAYS, depending on your trading style.
3) LENGTH, by default it will be loaded as in the STRATEGY, but considering the previous point, you can modify it according to your convenience.
The "Liquidity Pool - TradingED" indicator is an advanced tool developed for traders who need to identify and visualize liquidity zones directly on their TradingView charts. This indicator overlays the price chart, highlighting significant areas where potential support or resistance levels might form, aiding in the decision-making process by pinpointing zones of high trading interest.
Key Features:
- Dynamic Zone Visualization: Automatically calculates and displays bullish and bearish zones based on real-time market data.
- User Customization Options: Allows users to toggle the display of all pivots, only the last created pivots, and the background colors for better visibility and personal preference.
- Advanced Calculation Algorithms: Identifies bullish or bearish zones using the highest/lowest prices points combined with the open or close price within a given timeframe.
- Dynamic Filtering: Filters zones dynamically to ensure only the most relevant zones are displayed based on user-defined price targets.
- Visual Representation: Uses boxes to represent liquidity zones, extending them visually across the chart for clear, actionable insights.
Practical Applications:
- Support and Resistance Identification: Zones act as potential areas of support or resistance, guiding traders on key levels for setting stop losses or taking profits.
- Trend Confirmation: By observing how price interacts with these liquidity zones, traders can confirm potential reversals or continuation of trends.
- Strategic Trade Planning: Helps in planning entry and exit strategies by providing visual cues about high liquidity areas where price movements are likely to occur.
This indicator is tailored for day traders and swing traders who require precise visual cues about liquidity zones and wish to integrate these insights into their trading strategies. It offers a comprehensive set of features that enhance the understanding of market structures and facilitate informed trading decisions based on the analysis of liquidity pools.
Script su invito
Solo gli utenti autorizzati dall'autore hanno accesso a questo script e ciò richiede solitamente un pagamento. Puoi aggiungere lo script ai tuoi preferiti, ma potrai utilizzarlo solo dopo aver richiesto l'autorizzazione e averla ottenuta dal suo autore - per saperne di più leggi qui. Per maggiori dettagli, segui le istruzioni dell'autore qui sotto o contatta direttamente Trading_ED.
TradingView NON consiglia di pagare o utilizzare uno script a meno che non ci si fidi pienamente del suo autore e non si comprenda il suo funzionamento. Puoi anche trovare alternative gratuite e open-source nei nostri script della comunità.
Istruzioni dell'autore
Attenzione: prima di richiedere l'accesso, leggi la nostra guida per gli script su invito.
Declinazione di responsabilità
Script su invito
Solo gli utenti autorizzati dall'autore hanno accesso a questo script e ciò richiede solitamente un pagamento. Puoi aggiungere lo script ai tuoi preferiti, ma potrai utilizzarlo solo dopo aver richiesto l'autorizzazione e averla ottenuta dal suo autore - per saperne di più leggi qui. Per maggiori dettagli, segui le istruzioni dell'autore qui sotto o contatta direttamente Trading_ED.
TradingView NON consiglia di pagare o utilizzare uno script a meno che non ci si fidi pienamente del suo autore e non si comprenda il suo funzionamento. Puoi anche trovare alternative gratuite e open-source nei nostri script della comunità.
Istruzioni dell'autore
Attenzione: prima di richiedere l'accesso, leggi la nostra guida per gli script su invito.