Liquidity Matrix | AnonycryptousLiquidity Matrix | Anonycryptous
Description & user manual
**Credits**
The sweep detection engine in Liquidity Matrix draws conceptual inspiration from the Liquidity Sweep Filter by AlgoAlpha. The approach to identifying swing-based stop hunts, classifying sweeps by volume significance, and filtering by trend direction is based on ideas first demonstrated in their open-source script, author: AlgoAlpha (tradingview.com/u/AlgoAlpha)
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Why this indicator is different;
Most liquidity indicators show you one thing. A zone. A sweep marker. A supply box. A trendline. Each tool tries to solve one problem, and if you want to understand the full picture, you stack five or six indicators on the same chart until it becomes unreadable.
Liquidity Matrix works differently.
It is not a signal indicator. It does not tell you when to buy or sell. It does not score your trades or track your win rate. What it does is something more fundamental: it maps the full landscape of liquidity around price, across ten independent engines, all configurable, all in one overlay.
The core idea is that liquidity drives price. Retail traders place stops at predictable locations — below swing lows, above swing highs, at equal highs and lows, at structural pivots, inside fair value gaps. Institutional participants know this. They move price to those locations, collect that liquidity, and then move in the direction they were always going. If you understand where the liquidity is, where it has already been taken, and what levels are still sitting unmitigated, you understand the context before you place a trade.
Liquidity Matrix gives you that map.
What makes it different from other multi-engine indicators is that every engine is genuinely independent. You can run just the liquidity zones. Or just the voids and HTF levels. Or every engine at once and build your own confluence system. There is no forced reading. There is no house view on what the market is doing. You bring your methodology. The indicator gives you the context to apply it.
It also does something no single-purpose tool does: it shows you the volume behind every level. Not just where the stop clusters are — but how much liquidity was there when they formed. A zone created on 2.4M volume is not the same as a zone created on 58K. The indicator makes that difference visible.
Important notice
Liquidity Matrix does not generate trading signals.
It does not tell you when to buy or sell.
It does not predict market direction.
It does not guarantee any outcome.
All trading decisions remain entirely with the user.
Always apply your own judgment and manage your own risk.
1. Overview
Liquidity Matrix is a multi-engine liquidity context indicator built around one idea: before you place a trade, understand where the liquidity is.
What it includes:
- Liquidity zones: probability-scored pivot clusters with volume intensity rendering
- Equal highs and equal lows: zones where retail stops stack at matching price levels
- Trend engine: directional band with accumulated sweep volume tracking
- Sweep detection: swing-level stop hunt identification with safe stop placement
- HTF liquidity levels: higher timeframe high/low levels as horizontal reference lines
- Dynamic trendlines: automatically detected diagonal support and resistance with touch volume
- Supply and demand zones: SMC-based structural zones with BOS conversion
- Weekend gap: Friday close reference with gap fill tracking
- Liquidity voids: fair value gaps with gradient layer fill tracking
- RSI divergence: price chart divergence detection with candle coloring and optional trailing stop
- Dashboard: live market context across all active engines
2. Liquidity zones
2.1 How they form
Liquidity zones are identified at confirmed pivot highs and lows. A pivot forms when a price extreme holds for a configurable number of bars on both sides. Each zone is scored using a probability model that weighs four factors: distance from current price, age of the zone, whether it is still fresh (untested), and the volume present at formation.
The result is a probability score from 0 to 100 displayed on the chart. A score above 70 appears in green. Between 40 and 70 it appears in gold. Below 40 it appears in red.
The fill intensity of each zone box scales automatically with the normalized volume at formation. Higher volume at creation means a fuller, more opaque box. This makes the visual weight of each zone reflect its actual significance without requiring manual evaluation.
Zones above price are BSL — buy side liquidity. These are where long stops and breakout orders sit. Zones below price are SSL — sell side liquidity. These are where short stops and breakdown orders sit.
2.2 Sweep markers
When price breaks through the bottom of a demand zone or the top of a supply zone, a circle marker appears on the chart — above the candle for a supply zone break (bearish), below the candle for a demand zone break (bullish). The zone fades to indicate the liquidity has been consumed. This is distinct from the swing sweep detection engine, which operates independently.
2.3 Settings
Pivot left and right bars control detection sensitivity. Fewer bars on the right produces faster confirmation but reduces accuracy. The volume filter removes zones that formed on below-average activity. Fresh zones only hides tested zones to keep the chart clean. Max zones controls how many active zones are held at once. The swept zone transparency and show swept toggle control what remains visible after a zone is consumed.
2.4 In practice
Look for price approaching an unmitigated zone with a high probability score on high-volume context. The higher the score and the more opaque the box, the more likely institutional interest was present at formation. When multiple zones stack closely — visible as a cluster — that price area has concentrated stop density. When a zone is swept and the circle marker appears, the liquidity at that level has been cleared. Stops are gone. The level loses its significance as a target.
Volume note: all volume values in Liquidity Matrix are expressed in the base currency of the trading pair. On BTC/USDT, the value shown is in BTC. On SOL/USDT, it is in SOL. To convert to USD equivalent, multiply by the current price. This applies to every volume label across all engines.
3. Equal highs and equal lows
3.1 How they form
Equal highs and equal lows (EQH/EQL) are zones where price has tested the same level on two or more separate occasions without closing through it. These represent areas where retail stop orders have accumulated in a predictable way. Matching swing highs create a resistance cluster with long stops resting above. Matching swing lows create a support cluster with short stops resting below.
The zones are rendered as filled boxes using a linefill between two lines. The box spans from the lower of the two matching pivots to the higher, creating a clearly visible area of concentrated liquidity.
3.2 Settings
Tolerance (ATR×) controls how precisely two pivots must match to qualify as equal. A lower tolerance requires a near-exact match. A higher tolerance allows approximate levels to be grouped. The minimum age prevents recent, unconfirmed pivots from forming zones too early. The removal mode determines whether a zone is removed when price touches the wick, the body, or the body at twice ATR distance.
3.3 In practice
An EQH/EQL zone directly above or below price is a high-probability target for a liquidity sweep. When price approaches such a level, consider whether the move has the characteristics of a stop hunt: a spike through the level, a strong close back inside, and a reversal. The volume label on each zone shows the total volume from both matching pivots combined — giving you a sense of how much liquidity is sitting there.
4. Trend engine
4.1 How it works
The trend engine calculates a rolling volatility band using ATR. When price is above the upper band, the trend direction is bullish. When price is below the lower band, it is bearish. The band tracks the dominant directional bias and changes color accordingly.
As the trend unfolds, peak and valley levels form at local turning points within the band. The engine accumulates the volume from sweep events at each of these turning points and displays it as a label on the band. The label shows the total volume cleared at that inflection point — a direct measure of how much liquidity was consumed as the trend moved through that level.
4.2 In practice
The trend direction is shown in the dashboard as bull or bear. Use this as your macro bias filter. Look for setups in the direction of the trend. The volume labels along the band show where the significant sweeps occurred — these points represent former liquidity levels that have already been consumed and are unlikely to act as targets again. The current edge of the band is where the next sweep may occur.
5. Sweep detection
5.1 How it works
The sweep detection engine monitors rolling swing highs and lows using a configurable lookback. When price spikes through a swing level on the wick and closes back inside, a sweep event is recorded. The wick must penetrate the level by at least a minimum ATR multiple. The close must reject with a minimum strength relative to the candle range. An optional EMA filter and cooldown period reduce false triggers.
Sweeps are classified as major or minor based on normalized volume. A sweep on above-average volume is marked with a solid triangle. A below-average sweep is marked with a hollow triangle.
When a sweep fires, a safe stop line is drawn at the sweep extreme — the wick tip. This is the correct location for a stop loss after a sweep, because the liquidity that was resting there has already been consumed. Placing a stop beyond a consumed sweep is placing it where no further stop hunt is likely to occur.
5.2 Settings
The wick minimum ATR multiple and minimum rejection percentage filter out weak sweeps. The EMA filter aligns sweeps with the broader trend. The cooldown prevents repeated triggers from the same level. Major sweep threshold (normalized volume) separates significant events from minor ones.
5.3 In practice
A major sweep on a significant EQH or liquidity zone is one of the cleanest setups in the indicator. Price took the liquidity, volume confirms the institutional event, and the safe stop line gives you a clear invalidation level. The smaller the distance between current price and the safe stop line, the more attractive the risk structure.
6. HTF liquidity levels
6.1 How they form
Higher timeframe high and low levels represent the largest clusters of resting liquidity on the chart. Monthly, weekly, daily, previous day, 4-hour, and 1-hour levels are supported. Each level is drawn as a horizontal line starting at the bar time of the HTF candle that created it and extending a configurable number of bars to the right.
The volume of the HTF candle is shown as a label at the right edge of the line. Higher volume on the HTF candle means more institutional activity was present when that level formed. Monthly levels have the highest opacity. Opacity decreases progressively as timeframe decreases, so the relative significance is immediately visible.
6.2 Settings
Each timeframe is individually toggleable. Line style (solid, dashed, dotted), width, and color are configurable. Extend bars controls how far the line projects to the right. The liquidity label can be hidden if a cleaner chart is preferred.
6.3 In practice
HTF levels are major liquidity magnets. Price tends to move toward unmitigated monthly and weekly highs and lows before reversing. When a HTF level aligns with a liquidity zone or EQH/EQL cluster, the confluence strengthens the case for a sweep at that level. The dashboard shows the nearest HTF level above and below current price so you can read the closest target without examining every line on the chart.
7. Dynamic trendlines
7.1 How they form
The trendline engine scans historical pivot highs and lows and finds the best-fit diagonal line across multiple touch points. A valid trendline requires at least two confirmed touches with minimal deviation, a score that weighs touch count, recency, tightness of touches, and span. The highest-scoring line for both support and resistance is drawn automatically every bar.
Volume accumulates at each confirmed touch point. The label at the end of the line shows the total accumulated volume across all touches — the more volume that has interacted with the trendline, the more significant it is as a structural level.
A channel fill renders between the support and resistance lines and changes color based on whether price is in the upper or lower half of the channel.
7.2 Settings
Pivot length controls detection sensitivity. Lookback bars limits how far back the engine searches. ATR length controls the volatility smoothing used for touch tolerance. Max violations allows lines to remain valid after a small number of wick pierces. Touch tolerance and max distance filter noise. Extend bars projects the lines forward.
7.3 In practice
A trendline with high accumulated volume and multiple tight touches is a strong structural level. When price approaches it from inside the channel, it is approaching a level where multiple institutional interactions have occurred. The volume label tells you how much. A break and retest of such a line — particularly with a sweep marker — is a high-quality location for a trade idea.
8. Supply and demand zones
8.1 How they form
Supply and demand zones are identified using structural pivot points. When a new swing high forms, a supply zone is created at that level. When a new swing low forms, a demand zone is created. Zones are sized using an ATR-based width multiplier. An overlap filter prevents duplicate zones from stacking in the same price area.
When price breaks through a zone boundary, the zone converts to a BOS line — a thin horizontal marker showing where market structure was broken. This mirrors the SMC (smart money concepts) approach where a broken supply zone confirms bullish structure, and a broken demand zone confirms bearish structure.
8.2 Settings
Swing length controls how many bars are required on each side of a pivot for zone formation. Zone width scales the height of each box relative to ATR. The midline (POI) can be toggled to show the point of interest at the center of each zone. History to keep limits the total number of visible zones. HH/LH/HL/LL labels mark each swing point with its structural context. BOS color is configurable separately from zone colors.
8.3 In practice
Supply and demand zones show you where price left an imbalance after a structural break. When a demand zone holds and price bounces from it, the zone remains valid. When price breaks through it, the BOS line marks where that structure was invalidated. These zones work best in combination with the liquidity zone engine — when both a liquidity zone and a demand zone overlap in the same price area, the confluence raises the probability of a significant reaction.
Note on terminology: liquidity zones and supply/demand zones are different concepts. Liquidity zones mark where stop orders are likely to be resting based on pivot volume and probability scoring. Supply and demand zones mark structural imbalances where price left quickly. Both can occur at the same level, but they represent different phenomena.
9. Weekend gap
9.1 How it works
The weekend gap engine records the last confirmed Friday close price and tracks whether price returns to fill that level during the following weekend and early week. On assets that trade continuously (crypto, 24/7 markets), the gap fill tracks whether price has revisited the Friday close since the weekend began.
The Friday close is drawn as a horizontal reference line extending forward into the week. The gap fill zone renders between the Friday close and price during the relevant window. A bullish gap (price above Friday close) renders in green. A bearish gap (price below Friday close) renders in red. When the gap is filled, it clears automatically.
9.2 Settings
Line style, width, and color are configurable. Extend days controls how far the Friday close line remains visible. Bull and bear gap colors are independently adjustable.
9.3 In practice
The Friday close acts as a liquidity magnet for early week price action. Markets frequently return to fill the weekend gap before continuing in the dominant direction. The dashboard shows the gap status (open, percentage, or filled) so you can monitor it without keeping the line visible on all timeframes. On CME futures charts, the gap window is literal — the market was closed and the gap in data is visible. On crypto charts, the market was open but institutional behavior around the weekly close creates the same magnetic effect.
10. Liquidity voids
10.1 How they form
A liquidity void (also called a fair value gap or imbalance) forms when price moves quickly in one direction across three consecutive candles, leaving a gap between the wick of the first candle and the wick of the third candle. No trading occurred in that gap area. Price tends to return to fill these zones as the market seeks balance.
The void is rendered as a gradient of 13 layers. Each layer fills individually as price touches it, changing to the filled color. This gives a precise view of how much of the void has been mitigated and how much remains unvisited. A volume label shows the total volume from the bars that created the void.
10.2 Settings
Mode controls whether all historical voids are shown or only the most recent N bars. Threshold (ATR×) sets the minimum gap size relative to ATR(144) — smaller values detect more voids, larger values filter to only significant imbalances. Bullish and bearish colors are independently configurable. The filled void color can be adjusted or filled voids can be removed entirely by toggling the show filled setting.
10.3 In practice
Unfilled voids below price are areas where no transactions occurred during an upward move. They act as potential support and pullback targets. Unfilled voids above price are areas where no transactions occurred during a downward move. They act as potential resistance and rally targets. When a void aligns with a liquidity zone or HTF level, the overlap represents an area with both structural significance and a gap to fill. The volume label on each void gives you a sense of how much liquidity was consumed when the void was created — larger voids on higher volume represent more significant imbalances.
11. RSI divergence
11.1 How it works
RSI divergence occurs when price and RSI move in opposite directions at swing points. A bullish divergence forms when price makes a lower low while RSI makes a higher low — momentum is increasing even though price is still falling, which often precedes a reversal upward. A bearish divergence forms when price makes a higher high while RSI makes a lower high — momentum is weakening even though price is still rising, which often precedes a reversal downward.
The engine detects these events mechanically using pivot-based RSI analysis. When a divergence is confirmed, a box is drawn directly on the price chart spanning all candles between the two pivot points. Circle markers appear at each pivot on the price candle. This keeps the divergence signal on the chart where the price action is, rather than requiring a separate RSI pane below.
Candle coloring reflects RSI momentum continuously. When RSI is above 50 and below the overbought level, candles are colored green — the gradient becomes more intense as RSI approaches the overbought threshold. The closer RSI is to overbought, the stronger the green. When RSI crosses the overbought level, coloring stops entirely — momentum is at an extreme and the gradient no longer adds information.
The same logic applies in reverse below 50. Candles are colored red with increasing intensity as RSI approaches the oversold level. When RSI crosses below the oversold threshold, coloring stops.
This means the gradient is always telling you how much room is left in the current momentum move — fully colored means RSI is just above 50 with a long runway ahead, faded means RSI is approaching an extreme. When the color disappears, the move is at full extension.
An optional trailing stop activates after a divergence is confirmed by an RSI 50 crossover. For a bullish divergence, the stop activates when RSI crosses back above 50 and trails below price using ATR distance. It closes when price breaks the stop level or RSI reaches the overbought threshold. For a bearish divergence, the stop activates on an RSI cross below 50 and trails above price until price breaks through or RSI reaches oversold.
Note: if the RSI divergence engine is disabled while a trailing stop is active, the stop line will disappear immediately without triggering a close. Do not disable the engine mid-trade while relying on the trailing stop as an active risk tool.
11.2 Settings
RSI length — period for the RSI calculation. Default 14.
Sensitivity — controls the pivot detection window. High detects more divergences using smaller pivots. Medium is the default. Low requires larger structural pivots and produces fewer but stronger signals.
Show bullish / show bearish — each direction can be toggled independently so you only see what is relevant to your current bias.
Bullish color / bearish color — the color used for the divergence box, circle markers, candle gradient, and trailing stop line.
RSI candle coloring — toggle the gradient candle coloring on or off without affecting divergence detection.
Overbought level — RSI level at which candle coloring stops on the upside. Default 70. Raise this to 80 for assets that tend to stay overbought for extended periods.
Oversold level — RSI level at which candle coloring stops on the downside. Default 30. Raise this to 20 for assets that tend to stay oversold for extended periods.
Trailing stop — toggle the trailing stop line on or off independently.
ATR length / ATR multiplier — control the sensitivity of the trailing stop. A higher multiplier gives the stop more room and reduces premature exits on volatile assets.
11.3 In practice
Use the divergence engine as a momentum context layer on top of the liquidity engines. A bullish divergence forming at an unmitigated liquidity zone or demand zone adds significant weight to the expectation of a reversal. A bearish divergence forming just below a major HTF level or supply zone suggests the move upward may be losing momentum before reaching that target.
The dashboard row shows the current divergence state — none, bullish, or bearish — so you can monitor it without inspecting the chart.
The candle gradient is the most immediately useful visual element. Watch for candles that are deeply colored — RSI has momentum but has not yet reached an extreme. When the gradient begins fading, RSI is extending. When it disappears entirely, RSI has crossed the overbought or oversold threshold and the move is at full extension. This is often where divergence begins to form on the next cycle.
For overbought and oversold levels: on assets like BTC or ETH that can sustain strong trends, consider raising the overbought level to 75 or 80 and lowering the oversold level to 20 or 25. This prevents the coloring from stopping too early during genuine momentum moves. On more volatile altcoins where RSI whipsaws frequently around the extremes, the default 70/30 setting works well.
12. Dashboard
The dashboard displays a live summary of all active engine data in one panel. It updates every bar.
Rows shown:
Header — indicator name and timeframe label.
Trend — current direction from the trend engine: bull, bear, or ranging.
Liq zones — count of active BSL and SSL zones in view.
Nearest BSL — closest buy side liquidity level above current price.
Nearest SSL — closest sell side liquidity level below current price.
Top zone — highest probability unmitigated zone and its score.
Safe SL — current safe stop level from the sweep detection engine.
ATR (14) — current ATR value for context.
HTF — section divider for higher timeframe levels.
HTF above — nearest higher timeframe level above price.
HTF below — nearest higher timeframe level below price.
Market — section divider for market context rows.
Gap — weekend gap status: off, open (direction and percentage), or filled.
TL dist — distance from the nearest active trendline in ATR multiples.
BOS/CHoCH — whether the supply/demand structure engine is active.
EQH/EQL — count of active equal high and equal low zones.
Engines — total number of active engines.
Divergence — current RSI divergence state: none, bullish, or bearish.
Anonycryptous — version reference.
Dashboard position and text size are configurable.
13. Settings overview
Liquidity zones
- Enable/disable master toggle
- Pivot left and right bars
- Volume filter threshold
- Dynamic zone width
- Show fresh only
- Show swept zones
- Swept zone transparency
- Max zones
- Bull and bear zone colors
- Midline toggle and color
- Swept zone circle marker toggle, colors, and size
Equal highs and equal lows
- Enable/disable master toggle
- Pivot lookback length
- Tolerance (ATR×)
- Minimum age
- Removal mode (wick, body, body×2)
- EQH and EQL zone colors
- Show volume label
- Show accumulated sweep volume
Trend engine
- Enable/disable master toggle
- Trend band length
- Bull and bear band colors
- Show major/minor sweep volume labels
- Major sweep normalized volume threshold
Sweep detection
- Enable/disable master toggle
- Swing lookback
- Minimum wick ATR multiple
- Minimum rejection percentage
- EMA filter toggle, length, and timeframe
- Cooldown bars
- Major sweep normalized volume threshold
- Volume filter toggle
- Bull and bear colors
- Marker size
Safe stop line
- Line style, color, and extension bars
- Glow toggle
- Auto-remove after N bars
HTF liquidity levels
- Enable/disable master toggle
- Individual toggles for monthly, weekly, daily, previous day, 4H, P4H, 1H, P1H
- Line style, width, and color
- Extend bars
- Show liquidity label
Dynamic trendlines
- Enable/disable master toggle
- Pivot length
- Lookback bars
- ATR length
- Max violations
- Touch tolerance (ATR×)
- Max slope (degrees)
- Max distance (ATR×)
- Extend bars
- Show channel fill
- Show volume on touch
- Support and resistance colors
- Line width and style
Supply and demand zones
- Enable/disable (controls zones and BOS simultaneously)
- Swing length
- Zone width (ATR×0.1)
- History to keep
- Supply and demand colors and outlines independently
- Show midline (POI)
- Midline color
- Show HH/LH/HL/LL labels
- BOS color and line width
Weekend gap
- Enable/disable master toggle
- Show gap fill and show Friday close line independently
- Extend line (days)
- Bull and bear gap colors
- Friday close line color, width, and style
Liquidity voids
- Enable/disable master toggle
- Mode (present / historical)
- Lookback bars (for present mode)
- Void threshold (ATR×)
- Bullish and bearish void colors
- Show filled voids
- Filled void color
- Show volume label
RSI divergence
- Enable/disable master toggle
- RSI length
- Sensitivity (high, medium, low)
- Show bullish and bearish independently
- Bullish and bearish colors
- RSI candle coloring toggle
- Overbought level (default 70)
- Oversold level (default 30)
- Trailing stop toggle
- ATR length and multiplier for trailing stop
Dashboard
- Enable/disable
- Position
- Size
14. How to use
The indicator does not prescribe a method. It provides context. How you use that context depends on your own approach. The following describes the logic behind combining the engines effectively.
Start with bias. The dashboard trend row shows the current directional bias. The nearest HTF levels above and below give you the macro targets. If the weekly high is the nearest HTF above price, the market may be running toward that level before reversing.
Identify the nearest liquidity. The nearest BSL and SSL rows in the dashboard show the closest unmitigated zones. These are the most likely near-term targets for price. A high-probability zone score adds weight to the expectation that price will visit that level.
Look for confluence. When a liquidity zone, an EQH/EQL cluster, an HTF level, and a void all align at the same price area, the confluence is significant. Price has multiple reasons to move to that location. Once it arrives, multiple forms of liquidity can be consumed in one move.
Read the sweep markers. When a sweep triangle fires, liquidity was taken. The safe stop line shows the consumed level. If the sweep occurred at a high-probability zone with volume confirmation, the conditions for a reversal are in place. The triangle type (solid for major, hollow for minor) tells you how significant the volume event was.
Use the gap. In the early part of the week, the weekend gap status is visible on the dashboard. If the gap is open and price is below the Friday close, price has a tendency to return to that level. This can serve as a short-term directional bias early in the week.
Check the voids. Unfilled voids represent areas the market has not yet returned to. If price is approaching an unfilled void from outside, it is approaching a zone of imbalance that the market may seek to fill. A void aligned with a swept zone or an EQH/EQL cluster adds structural weight to the expected reaction.
15. Notes
- Liquidity Matrix is a context indicator. It maps where liquidity is, where it has been taken, and what levels remain unmitigated. It does not generate entry signals.
- All volume values are in the base currency of the trading pair. BTC/USDT shows volume in BTC. SOL/USDT shows volume in SOL. Multiply by price to approximate USD value.
- The sweep detection engine uses swing-based pivots. The supply/demand BOS engine uses a separate pivot. These are independent systems with independent lookback settings.
- On lower timeframes, more engines running simultaneously increases computation. If the indicator is slow to load, reduce the number of active engines or lower lookback values.
- HTF levels require the chart timeframe to be lower than the HTF being referenced. A daily chart will not show daily HTF levels accurately.
- The dynamic trendline engine runs every bar. On very long chart histories with tight tolerances, this may produce slightly longer load times.
- The liquidity void threshold is relative to ATR(144). On assets with low average volatility, the default threshold may produce very few voids. Reduce the threshold to increase sensitivity.
- Weekend gap tracking works on all assets. On CME futures, the gap is a literal data gap. On crypto and 24/7 assets, the gap reflects the Friday close level as an institutional reference.
16. Disclaimer
This indicator by Anonycryptous is provided for educational and informational purposes only.
All outputs are based on historical price and volume data.
Past behavior does not guarantee future results.
Trading involves substantial risk of loss.
Use at your own discretion.
Indicatore Pine Script®
