AlgoRhythmica - Liquidity StatsThe AlgoRhythmica - Liquidity Stats is a comprehensive trading indicator designed to analyze and plot liquidity data across various time periods. It uses estimated liquidity data and allows traders to select between 6 different scopes to analyze and view that data.
What is liquidity?
Liquidity refers to how quickly and easily an asset can be bought or sold in the market without affecting its price. High liquidity means that there are many buyers and sellers, and transactions can happen rapidly and smoothly.
Liquidity analysis involves examining where and how liquidity is distributed across different price levels.
Price often moves from liquidity zone to liquidity zone, and therefore, having an idea of whether there's more liquidity above or below price give traders an idea of where price might go next.
How does it work?
Internally, the indicator is simulating a complete liquidity map of the chart and cleverly estimates where traders might face losses (liquidations). It does this by looking at the volume of trading in each candle and projecting where, given certain common trading practices like using 10x or 20x leverage, traders are likely to get squeezed out of their positions. These projected squeeze-out points helps in visualizing potential future price movements, as prices often move towards these areas to balance out. But instead of rendering the liquidity on the main chart, which can get cluttered, this data is viewed in a separate panel through a selection of different scopes.
Keep in mind though, this liquidity data here is just an estimation based on general assumptions, it doesn't have access to actual liquidity data.
However, some risk and leverage amounts are more common than others. People like using those even numbers like 10x, 20x leverage or 1% stop loss etc. And that's why the liquidity estimations in this and other liquidity indicators can still be quite accurate.
Special Feature:
A special feature to this indicator is it's unique eye for 'vector candles'—those high-impact candles signaling significant market moves. It tracks these candles over time to see if the market revisits them, a behavior that can indicate major market maker activities and potential price reversal points.
The 6 different plotting scopes:
Liquidity Dominance:
The Liquidity Dominance is the long liquidity minus the short liquidity. When there's more liquidity above price, price tends to go up. There's also a 50 EMA running through it, indicating whether the liquidity dominance is particularly extended.
There is also a setting for normalizing the dominance to an adjustable EMA. Normalizing means that the value of the EMA will then become the zero-value of the dominance. This can be particularly effective in trending markets because it allows traders to see more clearly how the liquidity deviates from it's EMA.
Split Dominance:
This is simply the long and short liquidity plotted separately with a 200 SMA running through. This gives traders a slight more in-depth look at the liquidity. Looking at the difference between long and short liquidity and using the SMA as a reference, traders can more easily spot a trend shift and whether the liquidity types are about to cross each other.
Stochastic LQ:
Instead of using price data, the Stochastic LQ applies the stochastic oscillator formula to liquidity data. It measures the position of the current liquidity level relative to its high-low range over a specified period. By doing so, it aims to provide a clear picture of whether buyers or sellers are dominating the liquidity landscape within the chosen lookback period.
Liquidations:
This will display the amount of volume that was consumed when price wicked or crossed into a liquidity level on that particular bar. There's also a setting to cumulate the liquidations over the selected period. This will show you whether longs or shorts are suffering the most.
Vector Count:
This tool counts the number of unrecovered vector candles. If there are more to the upside, price is likely to go up. The vector count also has a setting for normalizing the count to an EMA. Some older vectors never get recovered and therefore normalizing the count to an EMA can be a more useful way of focusing on more recent vectors.
Total LQ:
By focusing on the total liquidity without differentiating between long and short positions, this tool simplifies the liquidity landscape. High total liquidity can support the sustainability of current trends, as it shows that there is enough market participation to support the price direction.
Additional Features:
Vector Recovery Dots:
A feature to visually identify recovered vector candles, indicating potential market reaction points for strategic entry or exit decisions.
This is used in combination with any of the tools. It will plot dots whenever a vector candle has been recovered. A recovered vector candle while liquidity is extended, could indicate a top or a bottom.
Dynamic Period Selection:
Choose between aggregating the liquidity over a fixed period (Daily, Weekly, Monthly, Yearly etc.) which then stays the same when the user switches timeframe, or choose a dynamic period with a fixed amount of candles which then dynamically shifts when changing time frame. This offers flexibility to look at liquidity over different time frames. Liquidity that falls outside of the selected period is considered gone, as traders eventually close their positions.
Lookback and Sensitivity Adjustment:
Customize the lookback period for volume averages and adjust sensitivity to refine the indicator's responsiveness to volume changes and liquidity calculations.
Leverage Settings:
Input specific leverage amounts to calculate liquidity on. These should be adjusted depending on the chart and timeframe the user is looking at. Decide on up to three different leverage amounts that traders would typically use on the chart and timeframe you're on. The liquidity will then be calculated using that leverage.
Tooltips:
The indicator comes with extensive tooltips for every function, making sure the user understand every part of it.
And as usual, use it together with other market analysis and perhaps a liquidity map of your choice.
Cerca negli script per "liquidity"
Liquidity Point LinesLiquidity Point Lines
The "Liquidity Point Lines" indicator helps traders identify potential areas of liquidity in the market by drawing lines at specific price levels where significant "liquidation events" may have occurred. These events are determined by analyzing the MACD Histogram and identifying pivot points that suggest strong movements, which are often associated with the flushing out of short or long positions.
How It Works
This indicator leverages the MACD Histogram to gauge the strength of price momentum. It then identifies pivot highs and lows within the MACD Histogram's values. When a significant pivot is detected, the indicator interprets this as a potential "liquidity point" — a price level where a substantial amount of buy or sell orders (often due to liquidations) may have been executed.
The indicator distinguishes between:
Shorts Liquidation Points (Resistance): These are identified when the MACD Histogram registers a pivot high, suggesting a strong upward movement that could have liquidated short positions. Lines are drawn at the high price of the bar where this pivot occurred.
Longs Liquidation Points (Support): Conversely, these are identified when the MACD Histogram registers a pivot low, indicating a strong downward movement that might have liquidated long positions. Lines are drawn at the low price of the bar where this pivot occurred.
Key Features and Settings
The "Liquidity Point Lines" indicator offers extensive customization to tailor its sensitivity and visual representation:
MACD Settings for Liquidity: Configure the underlying MACD calculation with adjustable Fast Length, Slow Length, Source, Signal Smoothing, and MA Types (SMA/EMA) for both the Oscillator and Signal Line.
Liquidity Points Settings:
Pivot Lookback Left/Right: Define the number of bars to look back on either side to identify a pivot in the MACD Histogram.
Dynamic Strength Thresholds: This powerful feature allows the indicator to dynamically calculate the significance of a liquidation event. When enabled, it uses the average absolute histogram value over a specified Dynamic Threshold Lookback Period and applies Small and Medium Threshold Factors to determine the strength (Small, Medium, or Large) of the liquidity point.
Fixed Strength Thresholds: If dynamic thresholds are disabled, you can set fixed numerical values for Small and Medium Histogram Thresholds to define the strength categories.
Color & Style Customization: Assign distinct colors for Small, Medium, and Large liquidation points, choose the Line Style (Solid, Dashed, Dotted), and set the Label Text Color.
Label X Offset (To Right): Adjust the horizontal position of the liquidity point labels on your chart.
Liquidity Points Management:
Max Active Liquidity Lines: Control the maximum number of liquidity lines displayed simultaneously on your chart. Older lines are automatically removed to maintain clarity, except for lines that have been "touched" (i.e., price has interacted with that liquidity level).
Visual Interpretation
Each liquidity line is colored according to the strength of the detected liquidation event, making it easy to visually assess the potential significance of the price level. Lines extend to the right, serving as ongoing reference points. When the price interacts with a liquidity line (i.e., "touches" it), the line and its corresponding label are removed, indicating that the liquidity at that level may have been absorbed.
This indicator can be a valuable tool for identifying potential support and resistance levels, understanding market reactions to "liquidation cascades," and informing your trading decisions.
Buyside & Sellside Liquidity [LuxAlgo]The Buyside & Sellside Liquidity indicator aims to detect & highlight the first and arguably most important concept within the ICT trading methodology, Liquidity levels.
🔶 SETTINGS
🔹 Liquidity Levels
Detection Length: Lookback period
Margin: Sets margin/sensitivity for a liquidity level detection
🔹 Liquidity Zones
Buyside Liquidity Zones: Enables display of the buyside liquidity zones.
Margin: Sets margin/sensitivity for the liquidity zone boundaries.
Color: Color option for buyside liquidity levels & zones.
Sellside Liquidity Zones: Enables display of the sellside liquidity zones.
Margin: Sets margin/sensitivity for the liquidity zone boundaries.
Color: Color option for sellside liquidity levels & zones.
🔹 Liquidity Voids
Liquidity Voids: Enables display of both bullish and bearish liquidity voids.
Label: Enables display of a label indicating liquidity voids.
🔹 Display Options
Mode: Controls the lookback length of detection and visualization, where Present assumes last 500 bars and Historical assumes all data available to the user
# Visible Levels: Controls the amount of the liquidity levels/zones to be visualized.
🔶 USAGE
Definitions of Liquidity refer to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly.
In the context of Inner Circle Trader's teachings, liquidity mainly relates to stop losses or pending orders and liquidity level/pool, highlighting a concentration of buy or sell orders at specific price levels. Smart money traders, such as banks and other large institutions, often target these liquidity levels/pools to accumulate or distribute their positions.
There are two types of liquidity; Buyside liquidity and Sellside liquidity .
Buyside liquidity represents a level on the chart where short sellers will have their stops positioned, and Sellside liquidity represents a level on the chart where long-biased traders will place their stops.
These areas often act as support or resistance levels and can provide trading opportunities.
When the liquidity levels are breached at which many stop/limit orders are placed have been traded through, the script will create a zone aiming to provide additional insight to figure out the odds of the next price action.
Reversal: It’s common that the price may reverse course and head in the opposite direction, seeking liquidity at the opposite extreme.
Continuation: When the zone is also broken it is a sign for continuation price action.
It's worth noting that ICT concepts are specific to the methodology developed by Michael J. Huddleston and may not align with other trading approaches or strategies.
🔶 DETAILS
Liquidity voids are sudden changes in price 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. The peculiar thing about liquidity voids is that they almost always fill up.
🔶 ALERTS
When an alert is configured, the user will have the ability to be notified in case;
Liquidity level is detected/updated.
Liquidity level is breached.
🔶 RELATED SCRIPTS
ICT-Concepts
ICT-Macros
Imbalance-Detector
SFC Smart Money Manipulation - Liquidity, StructureThis indicator shows very important information about the market.
Features:
- Market structure
- Important Ranges
- Liquidity
- Trading session
- Daily Checklist
Market structure
Market structure is the behaviour, condition, and current flow of the market. It highlights support and resistance levels, swing highs, and swing lows. A trend is simply a consistent direction of price movement over time. Market structure can tell you if the market is trending or not.
Market structure is a lagging indicator, because Highs and Lows must to be created in order to define the structure properly. The structure provide the most important information about the market.
Market structure can provide early signals about the trend.
- If the structure continues to break in the same direction, it means that the trend is healthy and will continue (BoS).
- If the structure break in the opposite direction, means that the trend may reverse or pause for a while (CHoCH).
Important ranges
- Asia Range - it is important intraday range and can provide early information if the day will be bullish or bearish.
- Most recent High/Low - determine the last swing
- Premium/ Discount zone with Fibonacci levels - the institutions always want to buy in discount and sell in premium.
Liquidity
Areas where a lot of traders get into the market and theirs stop losses are obvious. So the banks will manipulate the price to clear these stop losses, before price go in real direction. The banks will always hunt the liquidity.
The major liquidity is:
- Doji candle - displayed
- Double/Triple Highs or Lows - displayed
- Fair value gaps - displayed
- Imbalances - displayed
- Trend lines
- Big wicks
Trading Sessions
Price and Time theory is very significant in Smart Money Concept. The banks do not just place orders chaotically. They place it in specific time.
The indicator shows the Asia, London and New York intraday sessions and the kill zones.
Kill Zone - most manipulated time in the day, where institutions try to wipe out the retail traders and establish the true move.
Daily Checklist
Simple, but very useful checklist. It shows the most important daily steps in order qualitative analysis to be created.
How to use
1) Use the swing highs and lows and check the current structure.
2) Look where is the major liquidity. By default orange colour. When liquidity is retested from the price ,it change the colour from orange to gray. Retested liquidity is no more significant for the banks.
3) Use the important ranges to define the pullbacks or reversals or trading ranges.
4) Use the trading sessions and kill zones to place orders in the right time.
5) Use the "daily checklist" every day - step by step. It helps trader to analyse the current market.
Settings
-Show pivots, Pivot confirmation candles, Equal Highs/Lows sensitivity
-Show structures breaks
-Show most recent high/low
-Show Asia range
-Show premium/discount zone with Fibonacci levels
-Show liquidity, Colour of liquidity, Color of retested liquidity, Doji settings
-Show Trading sessions
-Show daily checklist
ICT LIQUIDITY indicator [Focused Trader]This indicator allows you to draw liquidity according to ICT. Specifically, you can choose to draw liquidity for specific sessions (Asia,New York,London).
Filtering by session
You can chooose to display only liquidities created in specific session. For example, the favourite liquidity is that of Asia. And then, in London market usually grabs it. So you set to display only liquidites of asia.
Session background
You can also display background over specific session, this is very usefull to see how market behaves - liquidity created in Asia is very often taken in London session. You can use any colour you'd like.
Colouring and style of lines
There is an option to choose colour for liquidity lines from different sessions and also choose specific colour for highs and lows. You can also set different styles (dash, dot, arrow, ...) of liquidty lines.
Leonid's Bitcoin Macro & Liquidity Regime Tracker🧠 Macro Overlay Score (Bitcoin Liquidity Regime Tracker)
This indicator combines the most important macroeconomic and on-chain inputs into a single unified score to help investors identify Bitcoin’s long-term cycle phases. Each input is normalized into a 0–100 score and blended using configurable weights to generate a dynamic, forward-looking macro regime tracker.
✅ Best used on the **Bitcoin All Time History Index with Weekly resolution** (`INDEX:BTCUSD`) for maximum historical context and signal clarity.
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📈 Why Macro?
Macro liquidity conditions — interest rates, monetary expansion, dollar strength, credit risk — drive Bitcoin cycles . Risk assets like BTC thrive during periods of:
Monetary easing
Liquidity injections
Expansionary central bank policy
This overlay surfaces those periods *before* price follows. It captures cycle shifts in the business cycle, monetary policy, and investor sentiment — making it ideal for long-term allocators, macro-aligned investors, and cycle-focused BTC holders.
🔔 This is **not** designed for short-term or swing trading. It is optimized for **macro trend confirmation and regime awareness** — not fast entry/exit signals.
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🔍 What It Tracks
Macro Inputs:
- 🏭 ISM 3M Trend (Business Cycle)
- 💹 CPI YoY (Inverted Inflation)
- 💵 M2 YoY + M2 Acceleration
- 🇨🇳 China M2 (Global Liquidity)
- 💱 DXY 3M Trend (USD Strength)
- 🏦 TGA & RRP YoY (Treasury / MMF Flows)
- 🏛 Fed Balance Sheet (WALCL)
- 💳 High Yield Spread (Credit Conditions)
- 💧 Net Liquidity Composite = WALCL – TGA – RRP
On-Chain Inputs:
- ⚠️ MVRV Ratio (Valuation Cycles)
- 🚀 Mayer Multiple Acceleration (200DMA Momentum)
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🧩 How It Works
Each input is:
Normalized to a 0–100 score
Weighted by importance (fully configurable)
Combined into a **composite Macro Score**, then normalized across history
The chart will display:
🔷 A 0–100 **Macro Score Line**
🧭 **Cycle Phase classification**: Accumulation, Expansion, Distribution, Capitulation
📊 Optional **debug table** with all sub-scores
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🧠 Interpreting the Signal
| Signal Type | Meaning |
|-------------------|---------------------------------------------|
| Macro Score ↑ | Liquidity improving → Bullish regime forming |
| Macro Score ↓ | Liquidity deteriorating → Caution warranted |
| Score < 40 & Rising | 🔵 Accumulation cycle likely beginning |
| Score > 70 & Falling | 🟡 Distribution / Macro exhaustion |
| Net Liquidity ↑ | Strong driver of BTC upside historically |
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❓ FAQ
Q: Why did the Macro Score peak in March 2021, but Bitcoin topped in November?
> The indicator reflects **macro liquidity**, not price momentum. M2 growth slowed, DXY bottomed, and the Fed stopped expanding WALCL by Q1 2021 — all signs of macro exhaustion. BTC continued on **residual momentum**, but the smart money began exiting months earlier.
Q: What does the score range mean?
- 0–25 : Tight liquidity, unfavorable conditions
- 50 : Neutral environment
- 75–100 : Strong easing, liquidity surge
Q: Is this good for short-term signals?
> No. This is a **macro-level overlay**, best used for 3–12 month context shifts, not day trades.
Q: Can I adjust the weights?
> Yes. You can tune the influence of each input to match your thesis (e.g., overweight on-chain, or global liquidity).
Q: Do I need special data access?
> No. All symbols are public TradingView datasets (FRED, CryptoCap, etc.). Just use this on a BTC chart like `BTCUSD`.
---
✅ How to Use
- Load on **`INDEX:BTCUSD`**, set to **Weekly timeframe**
- Confirm long-term bottoms when score is low and rising (Accumulation → Expansion)
- Watch for tops when score is high and falling (Distribution → Capitulation)
- Combine with price structure, realized profit/loss, and market sentiment
---
🚀 If you're serious about understanding Bitcoin's macro regime, this is your alpha map. Share it, clone it, and build on it.
Low Liquidity Zones [PhenLabs]📊 Low Liquidity Zones
Version: PineScript™ v6
📌 Description
Low Liquidity Zones identifies and highlights periods of unusually low trading volume on your chart, marking areas where price movement occurred with minimal participation. These zones often represent potential support and resistance levels that may be more susceptible to price breakouts or reversals when revisited with higher volume.
Unlike traditional volume analysis tools that focus on high volume spikes, this indicator specializes in detecting low liquidity areas where price moved with minimal resistance. Each zone displays its volume delta, providing insight into buying vs. selling pressure during these thin liquidity periods. This combination of low volume detection and delta analysis helps traders identify potential price inefficiencies and weak structures in the market.
🚀 Points of Innovation
• Identifies low liquidity zones that most volume indicators overlook but which often become significant technical levels
• Displays volume delta within each zone, showing net buying/selling pressure during low liquidity periods
• Dynamically adjusts to different timeframes, allowing analysis across multiple time horizons
• Filters zones by maximum size percentage to focus only on precise price levels
• Maintains historical zones until they expire based on your lookback settings, creating a cumulative map of potential support/resistance areas
🔧 Core Components
• Low Volume Detection: Identifies candles where volume falls below a specified threshold relative to recent average volume, highlighting potential liquidity gaps.
• Volume Delta Analysis: Calculates and displays the net buying/selling pressure within each low liquidity zone, providing insight into the directional bias during low participation periods.
• Dynamic Timeframe Adjustment: Automatically scales analysis periods to match your selected timeframe preference, ensuring consistent identification of low liquidity zones regardless of chart settings.
• Zone Management System: Creates, tracks, and expires low liquidity zones based on your configured settings, maintaining visual clarity on the chart.
🔥 Key Features
• Low Volume Identification: Automatically detects and highlights candles where volume falls below your specified threshold compared to the moving average.
• Volume Delta Visualization: Shows the net volume delta within each zone, providing insight into whether buyers or sellers were dominant despite the low overall volume.
• Flexible Timeframe Analysis: Analyze low liquidity zones across multiple predefined timeframes or use a custom lookback period specific to your trading style.
• Zone Size Filtering: Filters out excessively large zones to focus only on precise price levels, improving signal quality.
• Automatic Zone Expiration: Older zones are automatically removed after your specified lookback period to maintain a clean, relevant chart display.
🎨 Visualization
• Volume Delta Labels: Each zone displays its volume delta with “+” or “-” prefix and K/M suffix for easy interpretation, showing the strength and direction of pressure during the low volume period.
• Persistent Historical Mapping: Zones remain visible for your specified lookback period, creating a cumulative map of potential support and resistance levels forming under low liquidity conditions.
📖 Usage Guidelines
Analysis Timeframe
Default: 1D
Range/Options: 15M, 1HR, 3HR, 4HR, 8HR, 16HR, 1D, 3D, 5D, 1W, Custom
Description: Determines the historical period to analyze for low liquidity zones. Shorter timeframes provide more recent data while longer timeframes offer a more comprehensive view of significant zones. Use Custom option with the setting below for precise control.
Custom Period (Bars)
Default: 1000
Range: 1+
Description: Number of bars to analyze when using Custom timeframe option. Higher values show more historical zones but may impact performance.
Volume Analysis
Volume Threshold Divisor
Default: 0.5
Range: 0.1-1.0
Description: Maximum volume relative to average to identify low volume zones. Example: 0.5 means volume must be below 50% of the average to qualify as low volume. Lower values create more selective zones while higher values identify more zones.
Volume MA Length
Default: 15
Range: 1+
Description: Period length for volume moving average calculation. Shorter periods make the indicator more responsive to recent volume changes, while longer periods provide a more stable baseline.
Zone Settings
Zone Fill Color
Default: #2196F3 (80% transparency)
Description: Color and transparency of the low liquidity zones. Choose colors that stand out against your chart background without obscuring price action.
Maximum Zone Size %
Default: 0.5
Range: 0.1+
Description: Maximum allowed height of a zone as percentage of price. Larger zones are filtered out. Lower values create more precise zones focusing on tight price ranges.
Display Options
Show Volume Delta
Default: true
Description: Toggles the display of volume delta within each zone. Enabling this provides additional insight into buying vs. selling pressure during low volume periods.
Delta Text Position
Default: Right
Options: Left, Center, Right
Description: Controls the horizontal alignment of the delta text within zones. Adjust based on your chart layout for optimal readability.
✅ Best Use Cases
• Identifying potential support and resistance levels that formed during periods of thin liquidity
• Spotting price inefficiencies where larger players may have moved price with minimal volume
• Finding low-volume consolidation areas that may serve as breakout or reversal zones when revisited
• Locating potential stop-hunting zones where price moved on minimal participation
• Complementing traditional support/resistance analysis with volume context
⚠️ Limitations
• Requires volume data to function; will not work on symbols where the data provider doesn’t supply volume information
• Low volume zones don’t guarantee future support/resistance - they simply highlight potential areas of interest
• Works best on liquid instruments where volume data has meaningful fluctuations
• Historical analysis is limited by the maximum allowed box count (500) in TradingView
• Volume delta in some markets may not perfectly reflect buying vs. selling pressure due to data limitations
💡 What Makes This Unique
• Focus on Low Volume: Unlike some indicators that highlight high volume events particularly like our very own TLZ indicator, this tool specifically identifies potentially significant price zones that formed with minimal participation.
• Delta + Low Volume Integration: Combines volume delta analysis with low volume detection to reveal directional bias during thin liquidity periods.
• Flexible Lookback System: The dynamic timeframe system allows analysis across any timeframe while maintaining consistent zone identification criteria.
• Support/Resistance Zone Generation: Automatically builds a visual map of potential technical levels based on volume behavior rather than just price patterns.
🔬 How It Works
1. Volume Baseline Calculation:
The indicator calculates a moving average of volume over your specified period to establish a baseline for normal market participation. This adaptive baseline accounts for natural volume fluctuations across different market conditions.
2. Low Volume Detection:
Each candle’s volume is compared to the moving average and flagged when it falls below your threshold divisor. The indicator also filters zones by maximum size to ensure only precise price levels are highlighted.
3. Volume Delta Integration:
For each identified low volume candle, the indicator retrieves the volume delta from a lower timeframe. This delta value is formatted with appropriate scaling (K/M) and displayed within the zone.
4. Zone Management:
New zones are created and tracked in a dynamic array, with each zone extending rightward until it expires. The system automatically removes expired zones based on your lookback period to maintain a clean chart.
💡 Note:
Low liquidity zones often represent areas where price moved with minimal participation, which can indicate potential market inefficiencies. These zones frequently become important support/resistance levels when revisited, especially if approached with higher volume. Consider using this indicator alongside traditional technical analysis tools for comprehensive market context. For best results, experiment with different volume threshold settings based on the specific instrument’s typical volume patterns.
[GrandAlgo] Liquidity HeatmapThe Liquidity Heatmap is a unique indicator designed to identify and highlight zones where price is likely to react based on liquidity dynamics. Unlike tools that analyze volume across all price levels, this indicator focuses specifically on liquidity concentrated around potential reversal zones. By evaluating price action and volume at these critical levels, it identifies areas of heightened interest for traders.
Key Features:
Dynamic Liquidity Zones:
Automatically calculates liquidity zones based on historical price activity, ensuring real-time relevance.
Volume-Based or Candle Interaction Analysis:
Choose between volume-based evaluation to focus on order flow or candle-based interaction for a broader perspective.
Customizable Percentile Threshold:
Filter zones based on their significance by setting a threshold to display only the top liquidity areas.
Lookback Period Control:
Define how many candles the indicator should analyze, allowing you to focus on short-term or long-term liquidity levels.
Color-Coded Visuals:
Liquidity zones are displayed using gradients, with green representing potential bullish zones (below price) and red representing potential bearish zones (above price). Stronger zones are indicated with darker colors.
How It Works:
The Liquidity Heatmap divides the price range into multiple levels, evaluating each level for interaction with historical price data. Liquidity zones are calculated based on:
Volume Concentration: When enabled, the indicator evaluates zones using historical volume, highlighting areas with significant order flow.
Candle Interactions: When volume-based analysis is disabled, the indicator calculates the number of candles interacting with each zone to determine its importance.
Zones that meet the user-defined percentile threshold are highlighted on the chart. Color gradients indicate the strength of each zone, allowing traders to prioritize the most significant areas. Real-time alerts notify users when the price touches these zones, providing actionable insights.
The image illustrates the volume-based analysis feature of the Liquidity Heatmap indicator. Liquidity zones are dynamically highlighted with intuitive color gradients—green for bullish volume and red for bearish volume—providing a clear visual representation of areas with concentrated liquidity at potential reversal points. This feature helps traders focus on zones with significant market activity, enhancing their decision-making process.
Disclaimer
This indicator is a technical analysis tool designed to assist traders by providing insights into market conditions. It does not guarantee future price movements or trading outcomes and should not be relied upon as a sole decision-making tool. The effectiveness of this indicator depends on its application, which requires your trading knowledge, experience, and judgment.
Trading involves significant financial risk, including the potential loss of capital. Past performance of any tool or indicator does not guarantee future results. This script is intended for educational and informational purposes only and does not constitute financial or investment advice. Users are strongly encouraged to perform their own analysis and consult with a qualified financial professional before making trading decisions.
ICT SM Trades (liquidity find & grab, MSS, FVG, killzones)Indicator looks for ICT & Smart Money trades on any timeframe. These types of trades reveal how the big institutions, banks and hedge funds trade with big money. If they want their very big positions to be filled they need to find areas in chart where the majority of the money is sitting. Where is it? Where is the majority of orders placed? Right below supports or right above resistance, these orders are stoplosses or stop orders. So they need to push the price to these areas, take all the available stoplosses and trigger all the available stop orders in order to fill their positions and then push the price to the opposite side to make profit (and retail to lose).
Indicator looks for support or resistance (S/R) areas which are represented by dotted lines. This S/R areas are created by minimum of 2 pivot high/low (H/L). Every pivot H/L that creates the S/R area is marked with diamond label. This S/R area is called liquidity. After liquidity is created, indicator looks for liquidity grab (mostly represented by fast spike to this area - it is labeled with x-cross) and then price should go fast to the opposite side of the created structure. Indicator considers as a created structure everything that was created on the other side of the candles from the oldest pivot H/L which creates particular liquidity. For example, if liquidity is created with 3 pivot highs, indicator looks at the oldest pivot high and from there it is looking for the lowest low. Under this lowest low is dashed line which means that this level should be broken with closed candle. This action is called market structure shift (MSS), when the price shifted very fast from highs to lows. After MSS, when the price went fast to one direction, there were some imbalances in prices, in our example selling pressure was a lot bigger than buying pressure and there were created some long untested bearish candles. This untested areas in candles are called imbalances or gaps of fair value gaps (FVG). These are labeled with rectangles. It is expected that these gaps will be tested in near future to "balance the market".
We can put limit orders into these gaps and await some retracement after MSS to open our positions and after the positions are opened we can expect trend continuation in the direction where market structure shift was made (away from liquidity grab). So stoplosses can be placed above/below liquidity grab candle (marked with x-cross).
In settings of the indicator you can set whether only long or only short trades will be shown. Long trades are green and short trades are red. You can set if fair value gaps will be shown as well. The last thing in settings is session. You can set custom session which will be shown as background color on your chart.
Emibap's HEX Uniswap v3 Liquidity PoolThis script will display a histogram of the Uniswap V3 HEX liquidity pool, versus as many tokens as possible.
Current supported pairs:
HEX/USDC
HEX/WETH
HEX/WETH.USD (Ethereum expressed in USD)
HEX/USDT (Just showing the USDC liquidity)
Similar to what you can see in the liquidity section of the Uniswap pool page but conveniently rendered alongside your chart.
It's meant to be used on a HEX / WETH chart only. The price should be expressed in WETH for it to work.
One of the main motivations for using this in your chart is to get an idea of the current sentiment: If most of the volume is above the price it might be an indication of an upcoming move up, for instance.
I'll try to update the liquidity regularly.
Using the 4h, daily, or weekly time frames is highly recommended.
The options are straightforward:
Histogram bars color. Default is blue
Histogram background color. Default is black at 20% opacity
Upper price limit of the diagram: Visible upper bound price limit for the histogram, based on the current price. I.E: 200%: If the price is 1, the histogram will show 3 as the upper bound
Lower price limit of the diagram. Visible lower bound price limit for the histogram, based on the current price. I.E: 99%: If the price is 1, the histogram will show 0. 01 as the upper bound
Width of the widest bar: Width (in bars) for the widest bar of the histogram. The more the higher resolution you'll get
Locked volume marker line thickness
Locked volume marker color
NY Open Breakout Strategy - High Liquidity & Favorable RRR Pine Description:
The NY Open Breakout Strategy is an advanced Pine Script indicator tailored for the TradingView platform. This strategy is specifically designed to exploit the high liquidity found during the New York session opening in the Forex market. Its primary goal is to provide traders with an opportunity to engage in positions with lower risk and higher potential profits, thereby ensuring an advantageous risk-to-reward ratio (RRR).
Core Objectives:
Leveraging High Liquidity: Capitalizes on the significant market movements at the New York session opening, known for its high liquidity, to identify strong breakout signals.
Achieving Favorable RRR: By setting strategic stop-loss and take-profit levels, the strategy aims for a higher RRR. This approach can lead to overall profitability, even if the win rate is lower than the loss rate.
Functionality:
Dynamic Breakout Identification: Uses the first 15-minute candle’s high and low after NY open as benchmarks for detecting potential breakouts.
Customizable Stop-Loss & Take-Profit: Provides options to configure stop-loss at the last swing or the previous candle’s close. The take-profit levels are determined based on a favorable risk-reward ratio.
Visual Session Indicators: Includes distinct background coloring and vertical lines to mark the New York session for easy visibility.
Methodology:
This strategy hinges on the premise that the opening of the New York session often triggers key price movements due to an influx of trading activity. By focusing on these moments, our indicator aims to capture strong trends and breakout patterns. The carefully calibrated stop-loss and take-profit settings ensure that each trade aims for a higher potential reward compared to the risk undertaken.
Unique Features:
Enhanced Risk Management: With adaptable risk-reward settings, traders can tailor their trading strategies to align with individual risk appetites.
Personalized User Experience: Offers a range of customizable settings for visual elements, allowing traders to adjust the look and feel of the indicator to their preferences.
Usage Guidelines:
Customize the indicator settings, including the stop-loss reference and risk-reward ratio, to match your trading style.
Watch for 'Buy Enter' and 'Sell Enter' signals during the New York session opening.
Utilize the displayed stop-loss and take-profit levels to effectively manage each trade.
This NY Open Breakout Strategy is ideal for traders who prioritize efficient risk management while aiming to capitalize on the high liquidity periods of the Forex market. The strategy is designed to be robust, providing a pathway to profitability even in scenarios where the number of losing trades surpasses winning ones, thanks to its emphasis on a high risk-to-reward ratio.
HHLL and Liquidity LevelsHHLL AND Liquidity Levels
Description: This indicator shows hidden support and resistance levels and liquidity levels. The indicator allows traders to select source data from open/close or the high and low. The indicator also allows for appearance customization.
How can Higher highs and Lower lows and liquidity levels benefit traders?
HHLL refers to a series of higher highs and lower lows in an asset's price trend, which can indicate a potential reversal in the trend. Liquidity, on the other hand, refers to the ease with which an asset can be bought or sold without affecting its price. HHLL can help traders identify potential trends, while liquidity can ensure that trades can be executed smoothly and without significant price impact.
How can traders use this indicator?
Traders can use the indicator to identify potential market trends and market momentum. When the indicator show a series of higher highs and higher lows it can show a possible uptrend, meanwhile a series of lower lows and lower highs could show a possible uptrend with liquidity to confirm their trading decisions.
The script could also capture hidden support and resistance levels by showing areas where liquidity is concentrated and where price has repeatedly made higher highs and lower lows.
Features:
Support and Resistance levels based on Highs and Lows
Zig zags to show the HHLL's
Liquidity Levels
BOS and CHOCHS labels
Here are some examples of the indicator in action:
The HHLL and Liquidity Levels indicator being used with the Contraction and Expansion indicator to see when expansions are due and then price retest the liquidity levels.
Current Hourly Open Liquidity with Sweep DetectionStatistics indicate that if the current hourly candle reaches the high or low of the previous hourly candle, there is a strong likelihood that the price will return to the current hour's open, depending on how quickly the previous hour's high or low was swept. If the sweep occurs within the first 20 minutes, there is a 75% chance the current hour's open will be reached; if it takes between 21 and 40 minutes, the probability decreases to 50%; and if it takes longer than 41 minutes, the chance drops to 25%.
These statistics can help identify manipulation on the hourly timeframe and guide trade decisions accordingly. For instance, if the previous hourly high is taken within the first 20 minutes but the current hour's open is not reached, it may be wise to avoid long positions until it happens or consider short positions in the direction of the open liquidity, using your existing entry rules and risk management.
The indicator highlights the current hour's open with a line and label to visually represent that liquidity pool, adjusting the line's color based on whether and when the previous hour's high or low was tapped. Once the open is reached, the indicator can, depending on settings, remove the line and label from the chart (this is enabled by default) since the liquidity pool is no longer relevant, preventing chart clutter.
All colors, line widths, label text sizes, and colors can be customized.
Emibap's Uniswap V3 HEX/WETH 0.3% Liquidity PoolThis script will display a histogram of the Uniswap V3 HEX / WETH 3% liquidity pool.
Similar to what you can see in the liquidity section of the Uniswap pool page but conveniently rendered alongside your chart.
It's meant to be used on a HEX / WETH chart only. The price should be expressed in WETH for it to work.
One of the main motivations for using this in your chart is to get an idea of the current sentiment: If most of the volume is below the price it might be an indication of an upcoming move up, for instance.
I'll try to update the liquidity regularly.
Using the 4h, daily, or weekly time frames is highly recommended.
The options are straightforward:
Histogram bars color. Default is blue
Histogram background color. Default is black at 20% opacity
Upper price limit of the diagram: Visible upper bound price limit for the histogram, based on the current price. I.E: 200%: If the price is 1, the histogram will show 3 as the upper bound
Lower price limit of the diagram. Visible lower bound price limit for the histogram, based on the current price. I.E: 99%: If the price is 1, the histogram will show 0. 01 as the upper bound
Width of the widest bar: Width (in bars) for the widest bar of the histogram. The more the higher resolution you'll get
Support & Resistance/Supply & Demand/Liquidity/Trendlines (Expo)Real-Time Support & Resistance/Supply & Demand/Liquidity Zones /Trendlines / Key Levels
This trading tool automatically identifies real-time Support/Resistance, Supply and Demand, Liquidity Zones, Key levels, and Trendlines.
FEATURES
This indicator includes all necessary features for traditional technical analysis, such as Trendlines, Support/Resistance, Supply/Demand, and Liquidity Zones. In addition to that, we have added key market levels.
Support/Resistance: Identifies areas in real-time where the price finds support and resistance.
Supply/Demand: The indicator analyzes the market structure in real-time and maps out key supply and demand zones. The user gets an instant understanding of the current market structure.
Liquidity Zones: Liquidity zones are displayed where there is a significant level of trading activity and when there is both high supply and demand for an asset, security, or contract.
TrendLines: Trendlines help traders determine the current direction of market prices. A trendline is displayed when a price action trend is detected.
Key Levels: Key levels are psychological levels that are under the attention of many traders. There is a lot of buying or selling pressure at these levels. At these key levels, price decides its direction, either to go bearish or bullish.
HOW TO USE
Use the indicator to identify several important and commonly used levels and zones. All zones work as a future reference where the price has a higher likelihood to react at, bounce off from, or reverse.
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Disclaimer
Copyright by Zeiierman.
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
[DarkTrader] Liquidity Regression MapLinear Regression Function Reference by @RicardoSantos :
Liquidity Regression Map is an advanced indicator designed to assist traders in identifying key liquidity zones, reversals, and potential breakout areas within the market. By visualizing liquidity shifts and regression patterns, this tool provides a powerful visual guide to price movements that often go unnoticed by conventional indicators. The indicator's dynamic and adaptive approach helps traders better navigate complex market environments.
Purpose :
This indicator focuses on analyzing the behavior of liquidity in the market and mapping it out in a visual format on your TradingView charts. It provides a deeper understanding of where large clusters of liquidity exist, helping traders pinpoint potential areas where price is likely to react. It aims to highlight key liquidity zones and assess when price is likely to reverse or continue its trend, providing a comprehensive view of the market's internal structure.
Liquidity Regression Map supports multiple timeframes and multiple assets, providing traders with flexibility to analyze different market conditions. Whether you're analyzing short-term charts for scalping or higher timeframes for swing trades, the indicator adjusts its liquidity and regression calculations accordingly, ensuring accurate insights across all timeframes. Additionally, it is compatible with various asset classes, including stocks, forex, cryptocurrencies, and commodities, allowing you to apply the same powerful liquidity analysis across multiple markets for a unified trading strategy.
How It Works :
The indicator identifies liquidity zones by looking at the highs and lows of recent price action within a user-defined period, known as the lookback period. These zones represent areas where market participants are likely to have placed a significant number of stop orders or large positions, creating pockets of liquidity. The zones are visualized as levels on the chart, showing where the market is likely to react.
Next, the indicator performs a linear regression analysis on the price data. Linear regression helps smooth out the price action and gives an indication of the overall trend within the defined liquidity zone. This analysis is critical for determining the slope and direction of price movement, which provides insights into the market's momentum and strength in these liquidity areas.
A key feature of this indicator is its ability to detect liquidity swipes—sharp moves in price that sweep liquidity levels. When price approaches a liquidity zone and crosses it aggressively, the indicator highlights this as a swipe. Swipes often signal significant price reversals or trend continuation because they indicate that liquidity has been absorbed. The Akastra Liquidity Regression Map highlights these areas, helping traders anticipate where a reversal or continuation may occur.
As new price data comes in, the liquidity zones and regression lines dynamically adjust. This real-time update ensures that traders are always working with the most relevant and up-to-date liquidity information. The indicator recalculates the liquidity levels based on the recent highs and lows and repositions the regression lines accordingly. This makes it adaptive to both short-term volatility and long-term trends.
To make the analysis intuitive and easy to interpret, the liquidity levels are color-coded based on their strength and importance. Liquidity zones are shown using a gradient of colors, from weak liquidity (indicating potential minor reactions) to strong liquidity (where a significant price reaction is more likely). The heatmap visually communicates how liquidity is distributed across different levels and timeframes.
Liquidity Condition Filtering :
Another important aspect of the mechanism is the liquidity condition filtering, which only highlights significant liquidity shifts. The indicator evaluates if price movement meets certain thresholds, such as exceeding a 1.618 threshold for liquidity absorption or rejection . This filtering ensures that only the most relevant and impactful liquidity conditions are displayed, minimizing noise and false signals on the chart.
Finally, the indicator calculates and displays liquidity levels across multiple timeframes simultaneously, providing a more comprehensive view. For example, liquidity from a higher timeframe may interact with liquidity from a lower timeframe, providing traders with an overlapping view of where significant liquidity is concentrated. This multi-layer analysis helps to confirm trading setups and increases the probability of successful trades.
Emibap's Uniswap V3 HEX/USDC 3% Liquidity PoolThis script will display a histogram of the Uniswap V3 HEX / USDC 3% liquidity pool.
Similar to what you can see in the liquidity section of the Uniswap pool page but conveniently rendered alongside your chart.
It's meant to be used on any HEX / USDC chart only.
One of the main motivations for using this in your HEX / USDC chart is to get an idea of the current sentiment: If most of the volume is below the price it might be an indication of an upcoming move up, for instance.
I'll try to update the liquidity regularly; if possible several times a day.
Using the 4h, daily, or weekly time frames is highly recommended.
The options are straightforward:
Histogram bars color. Default is blue
Histogram background color. Default is black at 20% opacity
Upper price limit of the diagram: Visible upper bound price limit for the histogram, based on the current price. I.E: 200%: If the price is 1, the histogram will show 3 as the upper bound
Lower price limit of the diagram. Visible lower bound price limit for the histogram, based on the current price. I.E: 99%: If the price is 1, the histogram will show 0. 01 as the upper bound
Width of the widest bar: Width (in bars) for the widest bar of the histogram. The more the higher resolution you'll get
Expected LiquiditySimple but effective script that displays Liquidity Premium/Discount areas in an adaptive way based on key Fibonacci levels.
You can increase or decrease the 'Period' value in the Settings to adjust the gap between the lines as you see fit.
By default the value is '46' which should suit most markets.
- The script contains Alerts which are triggered when a liquidity line is crossed by the price.
Good trading to all and don't forget, risk management remains the most important!
Durdens Global M2 Liquidity Tracker🧠 Durdens Global M2 Liquidity Tracker | Bitcoin vs Liquidity, Visualized
If you’re not watching global liquidity, you’re not really trading macro.
This indicator tracks FX-adjusted M2 money supply across 20+ countries, aggregated into a single global liquidity signal. It can then be used to overlay against Bitcoin for timing macro shifts with precision.
🔍 Core Features:
🌐 USD-adjusted M2 from the US, China, Eurozone, UK, Japan, and more
📊 Normalization modes: None (raw), Index (Based to 100), Z-Score
⏳ Offset input to shift liquidity data forward — aligns with Bitcoin's delayed reaction (84–107 days common)
🧠 BTC correlation matrix: 30D, 90D, 365D correlation values
🧪 Top 3 M2 delta signals: Tracks 90-day % change for US, China, EU
🧮 Fibonacci SMAs: 13 / 34 / 89 for structural macro context
🟢🔴 Liquidity regime engine: EMA 89 defines "Risk-On" vs "Risk-Off" states
🧩 How It Works:
Each country’s M2 is multiplied by its FX rate (to USD) and summed into a single global M2 line. This ensures comparability across nations. The user can choose to:
Normalize the output (raw, indexed, or z-scored)
Shift the global M2 forward in time (offset), simulating the lag effect liquidity has on Bitcoin
Visualize macro risk conditions using EMA 89 as a liquidity regime filter
Analyze BTC correlation across 3 windows and track key regions’ M2 delta
❓ FAQ:
Why does this matter?
M2 is the monetary fuel behind asset bubbles. When liquidity rises, Bitcoin follows; with a delay. This tracker helps you front-run macro flows before they hit the chart.
Why use Index or Z-Score modes?
Raw values skew long-term visual analysis. Index mode rebases data for comparative trend tracking. Z-Score shows when liquidity is overheated or suppressed (mean reversion).
What does the offset input do?
Liquidity doesn’t hit Bitcoin instantly. Many traders use an 84–107 day forward shift to align M2 changes with BTC price action. The offset helps you visualize this.
Why track top 3 M2 regions?
US, China, and Eurozone are the heavyweights in global liquidity. Tracking their offset-day % change gives immediate insight into capital expansion or contraction.
Can I use this to trade?
Absolutely; but it’s best used as a macro filter. Combine with price structure, funding, or on-chain data to optimize timing and conviction.
⚡ Use Cases:
Spot early pivots in liquidity regimes (Risk-Off to Risk-On)
Quantify macro backdrop for Bitcoin or altcoin cycles
Understand when the Fed or PBOC are tightening or easing
Ditch the hopium. Trade with context.
—
Built by: @DurdensBitcoinLedger
Follow for updates — future upgrades include:
• Regional toggles
• Custom M2 baskets
• Alert conditions
• Continued revisions & updates
Stay liquid, not wrecked.
Liquidity Levels (Smart Swing Lows)Liquidity Levels — Smart Swing Low Detection
Efficient Liquidity Sweep Visualization for Smart Money Traders
This script automatically identifies and plots liquidity-rich swing lows based on pivot logic, filters them to remove redundant levels, and overlays daily highs/lows for added context — giving Smart Money Concept (SMC) traders a clean, actionable map of liquidity.
It’s designed to be minimal yet powerful: perfect for spotting potential liquidity grabs, mitigation zones, and sweep targets with zero chart clutter.
🔍 What This Script Does:
Detects Smart Swing Lows
Uses fixed pivot detection (left = 3, right = customizable) to identify structurally significant swing lows.
Filters out swing lows that are too close together using a percentage-based spacing threshold to reduce noise.
Mitigation Cleanup Logic
Tracks whether recent price action breaches past swing lows.
If breached, the swing level is automatically removed, keeping only relevant, unmitigated liquidity levels on your chart.
Plots Daily Highs and Lows
Each new trading day, horizontal rays mark the prior day’s high and low — useful for identifying resting liquidity and possible sweep zones.
Labeling and Style Customization
Optional labels for swing lows.
Full control over label size, color, and visibility to match any chart aesthetic.
Timeframe Filtering
Runs exclusively on 5m, 10m, and 15m charts to ensure optimal reliability and signal clarity.
⚙️ Customization Features:
Pivot sensitivity (Right side control)
Minimum distance between swing lows (in %)
Label visibility, size, and color
Line width and colors for both swing levels and daily highs/lows
Mitigation cleanup lookback length
💡 How to Use:
Add the script to a qualifying intraday chart (5–15m).
Use the swing low levels to monitor liquidity-rich zones.
Combine with your personal strategy to identify liquidity grabs, potential reversal zones, or entry points following a sweep.
Let the built-in cleanup logic remove any already-mitigated levels so you can focus on active targets.
🚀 What Makes It Unique:
This isn’t just another pivot plotter — it’s a smart, self-cleaning SMC tool designed for modern liquidity-based trading strategies.
A must-have for traders using concepts like liquidity grabs, mitigation blocks, or sweep-to-reverse trade models.
🔗 Best used in combination with:
✅ First FVG — Opening Range Fair Value Gap Detector: Pinpoint the day’s first imbalance zone for intraday setups.
✅ ICT SMC Liquidity Grabs + OB + Fibonacci OTE Levels: Confluence-based entries powered by liquidity logic, order blocks, and premium/discount zones.
Used together, these scripts form a complete Smart Money toolkit — helping you build high-probability setups with confidence, clarity, and clean charts.
[TTI] Fed Net Liquidity Indicator📜 ––––HISTORY & CREDITS
The Fed Net Liquidity Indicator is a tool developed after reading Max Anderson's twitter thread. This indicator is based on the calculation of the Fed's balance sheet, the Treasury General checking account, and what banks are parking at the overnight repo window at the Fed. The net of these three components gives us the net liquidity available to the markets, which is considered the fuel behind market moves.
🎯 ––––WHAT IT DOES
The Fed Net Liquidity Indicator provides a visual representation of the net liquidity levels in the market. It plots the SPX along with blue shading that represents the net liquidity levels. It also includes risk on/risk off signals and a fair value line that measures whether the market is overbought or oversold compared to the net liquidity readings.
The indicator also includes two levels for overbought and oversold conditions. The "short/hedge" level indicates that the market is becoming overbought and it's time to reduce risk-on positions. The "euphoric" level indicates extreme overbought conditions and it's time to actively short the market or exit. On the other side, the "bounce" line indicates oversold conditions and a potential short-term pop, while the "capitulation" level indicates extreme oversold conditions and a potential for a significant bounce.
🛠️ ––––HOW TO USE IT
To use the Fed Net Liquidity Indicator, you first need to set it up on your chart. Once set up, you can use it to guide your trading decisions based on the net liquidity levels, risk on/risk off signals, and the fair value line.
👉Follow the net liquidity levels: The market generally follows the net liquidity. If the liquidity is increasing, the market tends to go up, and if the liquidity is decreasing, the market tends to go down.
👉Pay attention to risk on/risk off signals: These signals can help you understand the market environment and adjust your positions accordingly. A risk-on signal indicates a good time to expose yourself to the market and go long on risk assets like stocks and crypto. A risk-off signal indicates that it's time to exit the market, hedge your positions, or go short.
👉Use the fair value line: This line can help you determine whether the market is overbought or oversold compared to the net liquidity readings. If the market is rising steeply but the liquidity is not confirming that, it could indicate overbought conditions. Conversely, if the market is falling but the liquidity is not confirming that, it could indicate oversold conditions.
👉Consider the overbought and oversold levels: These levels can help you identify potential tops and bottoms in the market. If the market reaches the short/hedge level, it's time to reduce risk-on positions. If it reaches the euphoric level, it's time to actively short the market or exit. On the other side, if the market reaches the bounce line, it could indicate a potential short-term pop. If it reaches the capitulation level, it could indicate a potential for a significant bounce.
High Liquidity Zones and Threshold VolumeThe High Liquidity Zones indicator is designed to identify areas of significant liquidity in the market. It helps traders recognize regions where trading volume is notably higher, indicating potential areas of increased market activity and interest.
The indicator calculates the average volume over a specified lookback period, which can be customized according to individual preferences. This average volume acts as a reference point to determine the threshold volume level. The threshold percentage input allows users to set the sensitivity of the indicator, defining the minimum volume required for an area to be considered a high liquidity zone.
When the current volume surpasses the threshold volume level, the indicator highlights these areas as high liquidity zones. This visual representation allows traders to quickly identify and focus on periods of heightened trading activity. The high liquidity zones are marked with square shapes below the histogram, providing a clear visual indication on the chart.
The first plot line represents the threshold volume level as a histogram, showing the volume levels in relation to the threshold. This histogram helps traders assess the magnitude of the volume in the identified high liquidity zones.
The second plot line represents the threshold volume's simple moving average (SMA) over the lookback period. The SMA acts as a reference line, smoothing out fluctuations in the threshold volume and providing a more stable measure of high liquidity zones. Traders can use this line to better understand the overall trend and dynamics of liquidity.
The High Liquidity Zones indicator offers flexibility, allowing traders to adapt it to their preferred trading style and timeframe. By adjusting the lookback period and threshold percentage, users can fine-tune the sensitivity of the indicator based on their trading strategies and market conditions.
Furthermore, traders can combine the High Liquidity Zones indicator with other technical analysis tools to confirm trading signals or identify areas of potential support and resistance. It can help them locate price levels where market participants have a substantial presence and where significant buying or selling pressure may occur.
Overall, the High Liquidity Zones indicator is a valuable tool for traders seeking to gain insights into market liquidity dynamics. By highlighting areas of intense trading activity, it assists in making informed trading decisions and identifying opportunities within the market.
Zero Lag Liquidity [AlgoAlpha]🟠 OVERVIEW
This script plots liquidity zones with zero lag using lower-timeframe wick profiles and high-volume wicks to mark key price reactions. It’s called Zero Lag Liquidity because it captures significant liquidity imbalances in real time by processing lower-TF price-volume distributions directly inside the wick of abnormal candles. The tool builds a volume histogram inside long upper/lower wicks, then calculates a local Point of Control (POC) to mark the price where most volume occurred. These levels act as visual liquidity zones, which can trigger labels, break signals, and trend detection depending on price interaction.
🟠 CONCEPTS
The core concept relies on identifying high-volume candles with unusually long wicks—often a sign of opposing liquidity. When a large upper or lower wick appears with a strong volume spike, the script builds a histogram of lower-timeframe closes and volumes inside that wick. It bins the wick into segments, sums volume per bin, and finds the POC. This POC becomes the liquidity level. The script then dynamically tracks whether price breaks above or rejects off these levels, adjusts the active trend regime accordingly, and highlights bars to help users spot continuation or reversal behavior. The logic avoids repainting or subjective interpretation by using fixed thresholds and lower-TF price action.
🟠 FEATURES
Dynamic liquidity levels rendered at POC of significant wicks, colored by bullish/bearish direction.
Break detection that removes levels once price decisively crosses them twice in the same direction.
Rejection detection that plots ▲/▼ markers when price bounces off levels intrabar.
Volume labels for each level, shown either as raw volume or percentage of total level volume.
Candle coloring based on trend direction (break-dominant).
🟠 USAGE
Use this indicator to track where liquidity has most likely entered the market via abnormal wick events. When a long wick forms with high volume, the script looks inside it (using your chosen lower timeframe) and marks the most traded price within it. These levels can serve as expected reversal or breakout zones. Rejections are marked with small arrows, while breaks trigger trend shifts and remove the level. You can toggle trend coloring to see directional bias after a breakout. Use the wick multiplier to control how selective the detector is (higher = stricter). Alerts and label modes help customize the signal for different asset types and chart styles.
