Liquidity Zones Alerts

🧠 How It Works
The core logic of this indicator is built around the Smart Money Concepts:
🔺 Liquidity Sweeps: Detects when price takes out previous daily or weekly highs/lows, suggesting stop hunts or engineered liquidity moves by institutional players.
📈 Volume Filter: Ensures signals only appear during above-average volume, filtering out noise and low-interest moves.
⚡ Volatility Filter: Flags high-range candles relative to the average, catching flash crashes/spikes that often precede strong reversals.
🔄 Engulfing Candle Confirmation: Confirms entry with a bullish or bearish engulfing pattern after liquidity is taken — increasing signal reliability.
🧭 Premium/Discount Zone Logic: Trades are filtered to ensure longs are only taken in discount zones, and shorts in premium zones, using a 20-period market range for context.
📌 Features
✅ Daily & Weekly liquidity zones toggle
✅ Visual signals with clean 🔻(short) & 🔺(long) arrows
✅ Auto-detection of flash crashes
✅ Alerts on both long and short setups
✅ Optional previous high/low level plotting for context
✅ Background highlighting of valid signal candles
✅ Multi-timeframe friendly and compatible with any asset
🛠️ Use Case
Whether you're a scalper or a swing trader, this tool helps you spot institutional entry zones before the move happens. It works especially well when combined with your existing bias or supply/demand zones.
💬 “Price doesn't move randomly — it hunts liquidity. This indicator shows you where and when it happens.”
Liquidity Zones Alerts is a high-precision indicator developed for traders who apply Smart Money Concepts (SMC), Liquidity Grabs, and advanced confirmation filters such as Breaker Blocks, Engulfing patterns, FVGs, and HTF alignment.
This tool is designed to highlight critical liquidity events — such as sweeps of previous highs/lows — and provides contextual signal filtering based on volume, candle structure, trend alignment, and volatility.
🧠 How It Works (Technical Logic)
This indicator tracks the following core conditions:
Liquidity Sweep Detection
Checks if price wicks above/below the previous daily or weekly high/low (with customizable offset).
Confirmed only if price closes back inside the range = potential trap or liquidity grab.
Optional Multi-Layer Filters:
Signals can be filtered using:
🔹 Volume filter — Confirm only if current volume is above 20-period average.
🔹 Engulfing candle — Bullish/Bearish engulfing must be present.
🔹 HTF Confirmation — Engulfing candle confirmation from a higher timeframe.
🔹 Flash Crash Detector — Detects high-volatility anomalies (based on ATR × multiplier).
🔹 Breaker Block Reaction — Signal must occur inside a defined breaker block range.
🔹 Fibonacci Filter — Signal must form in the discount zone of an impulse (0.5 or 0.618).
🔹 Structure Shift (BoS) — Confirms entry after a break of market structure.
🔹 HTF Trend Alignment — Only allows signals in trend direction (e.g., daily trend).
Smart Candle Confirmations:
Each signal is only confirmed if additional price action logic is met:
Rejection wick (strong rejection candle)
Inside bar (consolidation continuation)
🧪 Unique Features
✅ Filter Presets: Toggle between Low / Medium / High / Custom to control the strictness of signal generation.
✅ Raw Signal Mode: Option to display all liquidity grabs without filters for educational or manual review.
✅ Breaker Test & Liquidity Sweep Labels — Visually marks whether the signal is from a breaker zone or a liquidity sweep.
✅ Flash Crash Visualization: Shows yellow markers when abnormal candles with high volatility & volume appear.
✅ Adaptive Sensitivity: Flash crash multiplier and liquidity offset are customizable.
✅ Dynamic Multi-timeframe support for trend & confirmation logic.
🧩 Suggested Settings by Timeframe
Chart TF Recommended Settings
1m–15m Filter Preset: Low or Custom with fewer filters. Disable HTF filters and enable raw signals to catch microstructure sweeps.
1H–4H Filter Preset: Medium. Enable volume & engulfing. Optional: Breaker block, HTF trend (D1).
1D+ Filter Preset: High. Enable all filters: volume, HTF engulfing, structure, Fibonacci & trend alignment. Best for macro positioning.
⚙️ Tips for Optimization
If no signals appear, try lowering filter sensitivity (select Custom and disable some filters).
For scalping: Disable HTF trend alignment and BoS filters.
Use alert system to automate trade notifications based on clean sweep logic.
Combine with execution strategy or visual backtest to validate effectiveness in different market phases.
🚀 Why It’s Unique
Unlike basic liquidity sweep indicators, Liquidity Zones Alerts doesn’t just show wick breaks — it contextually analyzes market conditions before validating signals. This layered logic mimics institutional entry setups, making it ideal for serious traders who blend SMC, volume, and structure-based trading.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Per un accesso rapido a un grafico, aggiungi questo script ai tuoi preferiti: per saperne di più clicca qui.
Declinazione di responsabilità
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Per un accesso rapido a un grafico, aggiungi questo script ai tuoi preferiti: per saperne di più clicca qui.