ICT Immediate Rebalance Toolkit [LuxAlgo]The ICT Immediate Rebalance Toolkit is a comprehensive suite of tools crafted to aid traders in pinpointing crucial trading zones and patterns within the market.
The ICT Immediate Rebalance, although frequently overlooked, emerges as one of ICT's most influential concepts, particularly when considered within a specific context. The toolkit integrates commonly used price action tools to be utilized in conjunction with the Immediate Rebalance patterns, enriching the capacity to discern context for improved trading decisions.
The ICT Immediate Rebalance Toolkit encompasses the following Price Action components:
ICT Immediate Rebalance
Buyside/Sellside Liquidity
Order Blocks & Breaker Blocks
Liquidity Voids
ICT Macros
🔶 USAGE
🔹 ICT Immediate Rebalance
What is an Immediate Rebalance?
Immediate rebalances, a concept taught by ICT, hold significant importance in decision-making. To comprehend the concept of immediate rebalance, it's essential to grasp the notion of the fair value gap. A fair value gap arises from market inefficiencies or imbalances, whereas an immediate rebalance leaves no gap, no inefficiencies, or no imbalances that the price would need to return to.
Rule of Thumb
After an immediate rebalance, the expectation is for two extension candles to follow; otherwise, the immediate rebalance is considered failed. It's important to highlight that both failed and successful immediate rebalances, when considered within a context, are significant signatures in trading.
Immediate rebalances can occur anywhere and in any timeframe.
🔹 Buyside/Sellside Liquidity
In the context of Inner Circle Trader's teachings, liquidity primarily refers to the presence of stop losses or pending orders, that indicate concentrations of buy or sell orders at specific price levels. Institutional traders, like banks and large financial entities, frequently aim for these liquidity levels or pools to accumulate or distribute their positions.
Buyside liquidity denotes a chart level where short sellers typically position their stops, while Sellside liquidity indicates a level where long-biased traders usually place their stops. These zones often serve as support or resistance levels, presenting potential trading opportunities.
The presentation applied here is the multi-timeframe version of our previously published Buyside-Sellside-Liquidity script.
🔹 Order Blocks & Breaker Blocks
Order Blocks and Breaker Blocks hold significant importance in technical analysis and play a crucial role in shaping market behavior.
Order blocks are fundamental elements of price action analysis used by traders to identify key levels in the market where significant buying or selling activity has occurred. These blocks represent areas on a price chart where institutional traders, banks, or large market participants have placed substantial buy or sell orders, leading to a temporary imbalance in supply and demand.
Breaker blocks, also known as liquidity clusters or pools, complement order blocks by identifying zones where liquidity is concentrated on the price chart. These areas, formed from mitigated order blocks, often act as significant barriers to price movement, potentially leading to price stalls or reversals in the future.
🔹 Liquidity Voids
Liquidity voids are sudden price changes when the price jumps from one level to another. Liquidity voids will appear as a single or a group of candles that are all positioned in the same direction. These candles typically have large real bodies and very short wicks, suggesting very little disagreement between buyers and sellers.
Here is our previously released Liquidity-Voids script.
🔹 ICT Macros
In the context of ICT's teachings, a macro is a small program or set of instructions that unfolds within an algorithm, which influences price movements in the market. These macros operate at specific times and can be related to price runs from one level to another or certain market behaviors during specific time intervals. They help traders anticipate market movements and potential setups during specific time intervals.
Here is our previously released ICT-Macros script.
🔶 SETTINGS
🔹 Immediate Rebalances
Immediate Rebalances: toggles the visibility of the detected immediate rebalance patterns.
Bullish, and Bearish Immediate Rebalances: color customization options.
Wicks 75%, %50, and %25: color customization options of the wick price levels for the detected immediate rebalance.
Ignore Price Gaps: ignores price gaps during calculation.
Confirmation (Bars): specifies the number of bars required to confirm the validation of the detected immediate rebalance.
Immediate Rebalance Icon: allows customization of the size of the icon used to represent the immediate rebalance.
🔹 Buyside/Sellside Liquidity
Buyside/Sellside Liquidity: toggles the visibility of the buy-side/sell-side liquidity levels.
Timeframe: this option is to identify liquidity levels from higher timeframes. If a timeframe lower than the chart's timeframe is selected, calculations will be based on the chart's timeframe.
Detection Length: lookback period used for the detection.
Margin: sets margin/sensitivity for the liquidity levels.
Buyside/Sellside Liquidity Color: color customization option for buy-side/sell-side liquidity levels.
Visible Liquidity Levels: allows customization of the visible buy-side/sell-side liquidity levels.
🔹 Order Blocks & Breaker Blocks
Order Blocks: toggles the visibility of the order blocks.
Breaker Blocks: toggles the visibility of the breaker blocks.
Swing Detection Length: lookback period used for the detection of the swing points used to create order blocks & breaker blocks.
Mitigation Price: allows users to select between the closing price or the wick of the candle.
Use Candle Body in Detection: allows users to use candle bodies as order block areas instead of the full candle range.
Remove Mitigated Order Blocks & Breaker Blocks: toggles the visibility of the mitigated order blocks & breaker blocks.
Order Blocks: Bullish, Bearish Color: color customization option for order blocks.
Breaker Blocks: Bullish, Bearish Color: color customization option for breaker blocks.
Visible Order & Breaker Blocks: allows customization of the visible order & breaker blocks.
Show Order Blocks & Breaker Blocks Labels: toggles the visibility of the order blocks & breaker blocks labels.
🔹 Liquidity Voids
Liquidity Voids: toggles the visibility of the liquidity voids.
Liquidity Voids Width Filter: filtering threshold while detecting liquidity voids.
Ignore Price Gaps: ignores price gaps during calculation.
Remove Mitigated Liquidity Voids: remove mitigated liquidity voids.
Bullish, Bearish, and Mitigated Liquidity Voids: color customization option..
Liquidity Void Labels: toggles the visibility of the liquidity voids labels.
🔹 ICT Macros
London and New York (AM, Launch, and PM): toggles the visibility of specific macros, allowing users to customize macro colors.
Macro Top/Bottom Lines, Extend: toggles the visibility of the macro's pivot high/low lines and allows users to extend the pivot lines.
Macro Mean Line: toggles the visibility of the macro's mean (average) line.
Macro Labels: toggles the visibility of the macro labels, allowing customization of the label size.
🔶 RELATED SCRIPTS
ICT-Killzones-Toolkit
Smart-Money-Concepts
Thanks to our community for recommending this script. For more conceptual scripts and related content, we welcome you to explore by visiting >>> LuxAlgo-Scripts .
Liquidityvoid
Liquidity Levels/Voids (VP) [LuxAlgo]The Liquidity Levels/Voids (VP) is a script designed to detect liquidity voids & levels by measuring traded volume at all price levels on the market between two swing points and highlighting the distribution of the liquidity voids & levels at specific price levels.
🔶 USAGE
Liquidity is a fundamental market force that shapes the trajectory of assets.
The creation of a liquidity level comes as a result of an initial imbalance of supply/demand, which forms what we know as a swing high or swing low. As more players take positions in the market, these are levels that market participants will use as a historical reference to place their stops. When the levels are then re-tested, a decision will be made. The binary outcome here can be a breakout of the level or a reversal back to the mean.
Liquidity voids are sudden price changes that occur in the market when the price jumps from one level to another with little trading activity (low volume), creating an imbalance in price. The price tends to fill or retest the liquidity voids area, and traders understand at which price level institutional players have been active.
Liquidity voids are a valuable concept in trading, as they provide insights about where many orders were injected, creating this inefficiency in the market. The price tends to restore the balance.
🔶 SETTINGS
The script takes into account user-defined parameters and detects the liquidity voids based on them, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Liquidity Levels / Voids
Liquidity Levels/Voids: Color customization option for Unfilled Liquidity Levels/Voids.
Detection Length: Lookback period used for the calculation of Swing Levels.
Threshold %: Threshold used for the calculation of the Liquidity Levels & Voids.
Sensitivity: Adjusts the number of levels between two swing points, as a result, the height of a level is determined, and then based on the above-given threshold the level is checked if it matches the liquidity level/void conditions.
Filled Liquidity Levels/Voids: Toggles the visibility of the Filled Liquidity Levels/Voids and color customization option for Filled Liquidity Levels/Voids.
🔹 Other Features
Swing Highs/Lows: Toggles the visibility of the Swing Levels, where tooltips present statistical information, such as price, price change, and cumulative volume between the two swing levels detected based on the detection length specified above, Coloring options to customize swing low and swing high label colors, and Size option to adjust the size of the labels.
🔹 Display Options
Mode: Controls the lookback length of detection and visualization.
# Bars: Lookback length customization, in case Mode is set to Present.
🔶 RELATED SCRIPTS
Liquidity-Voids-FVG
Buyside-Sellside-Liquidity
Swing-Volume-Profiles
Automatic Closest FVG with BPRFair Value Gaps are a hugely popular concept and because of that there are numerous indicators available. This one however, was designed to automate the process of actually using them in trading.
Designed with lower time frame entries in mind (though will work on HTF just as well), this indicator automatically draws the closest, non-mitigated FVG, to the current price, cutting out the work of looking for what FVG is relevant.
The indicator also has an option to show when the current nearest pair of FVGs form a BPR or 'balanced price range'.
There are various option for what counts as mitigation, including no mitigation at all, and when mitigated an FVG is no longer considered for proximity searching.
ICT - GAPs and Volume Imbalance
GAPs
Gaps are areas on chart where the price have moved sharply up or down, with no trading in between. Gaps often fill, but they don't have to.
Volume Imbalance
Volume imbalance - determined using 2 candles
Bullish Volume Imbalance - area between the close of 1st candle and the open of 2nd candle
Bearish Volume Imbalance - area between the close of 1st candle and the open of 2nd candle
How to use the indicator:-
When you find imbalance in volume or a GAP in the chart, you may expect price to rebalance it before continuation.
Importantly, GAPs/Imbalances do not always fill. Traders should never assume that a gap/imbalance will fill without understanding the reasons for the gap and monitoring trading activity around the gap.
Pair it with your current bias for better results.
Fractal Break Imbalance / Fair Value Gap (FVG) / Liquidity VoidFractal Break Imbalance / Fair Value Gap (FVG) / Liquidity Void
Order imbalances in either direction, either excess buy or sell orders, reduce liquidity. The market will seek to fill gaps sooner or later. The script marks an imbalance / FVG after a fractal break. It also marks any other imbalance.
Default Colours:
Green - Imbalance after fractal break to the upside
Red - Imbalance after fractal break to the downside
Yellow - Other imbalances
How To Use:
Gaps can be used to determine possible entries and targets. Those familiar with liquidity raids, supply and demand, and ICT concepts may realise it's potential.
Indicator in use:
