Liquidity Toolkit

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Key Points:

• Liquidity Toolkit is your liquidity companion for monitoring and anticipating price action.
  
• Liquidity Toolkit combined the power of the Liquidity Status indicator with the potency of Price Triggers.
  
• Liquidity Status indicates if the current current liquidity environment is bullish or bearish.
  
• Price triggers highlight price levels where supports, resistances, and trend-changes are likely to occur.
  
• Together, they create a comprehensive and actionable view of the market.
  
  • Summary
    The Liquidity Toolkit (TK) is designed as a one-stop-shop indicator by combining novel liquidity metrics with traditional and impactful price measurements. In combination, TK grants unparalleled views of the market through effective yet simple displays.
    The TK indicator contains two separate by synergistic algorithms: the Liquidity Status algorithm, which measures liquidity to determine if outlooks are bearish or bullish; and the Price Triggers algorithm which analyzes price-action to determine points of support and resistances.
    
    Example 1:
    Example 2:
    Example 3:
    DetailsLiquidity Status
    Liquidity Status (LS) measures liquidity and produces either `Bullish` or `Bearish` indications depending on the current liquidity status.
    Bullish indications indicate that the overall flow of liquidity is supportive of bullish price and bearish indications indicate that the overall flow of liquidity is supportive of bearish price action.
    LS is displayed in two ways:
    
    1. Candle-Coloring: if candles are green, liquidity status is bullish and if candles are red, liquidity status is bearish.
       
    2. Text Display: Bearish and/or Bullish is displayed via text as well.
       
    Price Triggers
    Price Triggers (PT) measure price action and report their findings on several timeframes:
    
    1. 1-Minute
       
    2. 5-Minute
       
    3. 60-Minute
       
    4. 1-Day
       
    5. 1-Week
       
    
    TK graphs the PTs based on the chart interval – only the higher PTs are display (i.e.: On the 1-Hour chart, the 5-, and 1-Min PTs will not be displayed).
    
    Example 4
    In additional to showing price-levels of support and resistance, Price Triggers also display the relative strength of these supports and resistances by displaying the Trigger Strengths. These represent areas of influence.
    Opportunities often arise when PTs squeeze each other, often forcing spot to make a large move – as can be seen below:
    Example 5Frequently Asked Questions

    How can I get access to the Liquidity Toolkit?

    
    Please see the Author’s Instructions section at the top of the page for more details and information.
    

    How can I get additional information on the indicators used?
    

    
    Please see the Author’s Instructions section at the top of the page for more details and information.
    

    I added the Liquidity Toolkit but I do not see all of the PT lines – where are they?
    

    
    Depending on the chart interval, not all PT lines will be displayed. Those lower than the chart’s timeframe are hidden for clarity.
    

    I added Liquidity Toolkit but the chart’s candles are not being filled by LS.
    

    
    The chart will try to color over LS’ candles if you do not disable them. To disable, go to the Chart Settings then to Symbol and de-select Body, Borders and Wick.
    
    
    

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Quick patch

• 1-Hour Price Trigger will now be displayed regardless of chart interval.
  

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Updates:

• 5-Minute Trigger will now be auto-displayed up until the1-Hour chart.
  
• Fixed calculation issues causing Liquidity Status being overly conservative
  
• Price labels are now simple noted as `T:<Timeframe>` rather than `TK:<Timeframe>`.
  

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Quick updates:

• Small fixes to settings. Added tooltips.
  
• Removed misc. display elements from status bar.
  
• Renamed the price-scale indicators.
  

٣ نوفمبر

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Update: Opportunity Scalp Alerts – Recovery Scalp

The Recovery Scalp has been added!
This is the first of several rounds of updates planned to bring highly specific and actionable alerts to the Liquidity Toolkit.
The first alert is the Recovery Scalp, which is designed to identify moments where a price recovery is anticipated during an on-going price decline. In other words, it looks to capture the bottom of the dip by providing entry alerts right before price makes its first meaningful run towards recovery.
Note: These are only functional on the 5-Minute charts and below. Recommended setting is 5-Minutes.

Labels

• Monitoring Label: A `Monitoring` label is placed on the chart when the algorithm detects conditions are changing towards the start of a scalp opportunity and may provide opportunity to prepare. These labels can be toggled on or off.
  
• Enter Label: An `Enter` label is placed on the chart when the algorithm detects conditions have become indicative of a price-recovery initiating.
  
• Exit Label: An `Exit` label is placed on the chart when the algorithm detects either (A) Conditions are no longer indicative of a price recovery, or (B) Price has recovered and tested the first anticipated Price-Trigger resistance.
  

Scalp Alerts
The `Enter` and `Exit` designations are accompanied with an alert, entitled:

• Opportunity Enter - RS
  
• Opportunity Exit - RS
  

Additionally, more traditional alerts were added for individual alert creation, they include:
Price Trigger Cross-over with Bullish Liquidity
These trigger when a lower Price Trigger crosses over a higher Price Trigger with bullish liquidity, which can indicate the start of a bullish run. For example, the `5-Minute Bullish Crossover` will produce an alert whenever the 5-Minute PT crosses over the 1H, 1D or 1W Price Trigger with bullish liquidity.

Price Trigger Cross-under with Bearish Liquidity
Opposite the Cross-over with Bullish Liquidity: these alerts fire when a lower Price Trigger has crossed underneath a high Price Trigger with bearish liquidity. For example, if the 1-Day PT crosses under the 1-Week price trigger with bearish liquidity.

Additional Notes and Changes

• Opportunities User Agreement added and is required to be accepted before opportunities will function.
  
• Added option to color the Price Triggers based on their relationship to price. When below price and acting as supports, they are colored the selected Bullish color, and when above price and acting as resistances, they are colored the selected bearish color.
  

Bug Fixes

• Fixed a bug causing the LS Status position to not go where directed.
  

Examples of Scalp Opportunity Alerts
Example 1: NVDA


The Scalp Opportunity Entry alert fired on 2025-10-22 at 15:05. At that time, ATM Calls ($180 strike, expiry 2025-10-24 [T+2]) were $1.96 a contract.
The exit alert fired briefly after market open the next day at 2025-10-23 at 09:50. At that time, the ATM calls (same as above) were $2.71.
A 40% increase in ATM calls in fewer than 2 hours!

Example 2: TSLA

Entry alert fired on 2025-10-13 at 10:55, when the ATM calls ($420 strike, expiry 2025-1017 [T+4]) were $11.80 per contract.
The exit alert fired on 2025-10-13 at 13:40, 5 hours later. The same calls were $16.00, a 35% increase!

Example 3: VOO

Entry fired at 2025-09-25 at 15:10 prior to market close. At the time, the ATM calls ($605 strike, expiry 2025-09-26 [T+1]) were $3.00 per contract.
Exit alert came at 2025-09-26 at 09:30 right at market open, when the same calls were now $4.00 – a 33% jump!

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Changes

Alert & Webhook Compatibility
The Scalp Opportunity Alerts are now create-alert and web-hook compatible. You can add two new alerts once the Liquidity Toolkit is added to your chart:

• Scalp Opp. - Enter : This will fire an alert whenever the Scalp Opportunity algorithm indicates a potential `Enter` point.
  
• Scalp Opp. - Exit : This will fire an alert whenever the Scalp Opportunity algorithm indicates a potential `Exit` point.
  

Note These alerts are designed to fire at the end of each candle. The recommended chart interval is 5-minutes for the Scalp Opportunity alerts.
The Exit-Criteria falls into two catagories:

1. Profitable : Once an alert is issued, the algorithm identifies the next, most prominent area of potential resistance and will fire an exit alert if and when price reaches said point.
   
2. Non-Favorable Conditions : If liquidity conditions change, independent of position performance, an exit alert will be signaled.
   

Improvements

Scalp Opportunity algorithm was also hardened against inadvertent state persistence and recursions causing excessive noise.
The algorithm operates in 5 sequential states:

1. Stand-by: Indicates that liquidity environment is not indicative that the current environment will not lead to opportunity for a rapid price recovery.
   
2. Monitoring: This indicates a sufficient shift in liquidity has occurred, creating an environment favorable to an eventual rapid price recovery.
   
3. Potential: This indicates that the previously-monitored conditions have changed favorably and an entry is being sought.
   
4. Enter: This indicates that while in the `Monitoring` state, conditions changed indicative of the initiation of the rapid recovery.
   
5. Exit: Indicative of either profit-able or non-sustainable conditions met.
   

These states must proceed in order.

• More robust and dynamic algorithm developed for connecting `Monitoring` and `Enter` states prior to defaulting back to `Stand-By` state.
  

Core algorithm for the Scalp Opportunity Alerts adjusted to better handle repainting.

• You should notice a substantial decrease in repainting when monitoring real-time developments and alerts (including webhooks) versus historic view of same chart.
  
• Repainting cannot be avoided during intra-candle exit alerts that do not persist until the end of the candle. In real time, this means the algorithm will produce a greater amount of false (and early) exit alerts than the historical view of the charts will show (e.g.: the exits that were signaled intra-interval produce a real-time alert but that by the end of the interval are invalid (due to the exit criteria subsiding) and so at the end of the interval, there is no exit label and thus the historical chart does not display a label).
  
• In general, if an alert is fired but no label is on the chart, refreshing the chart will cause the label to appear. This can be done via CTRL + R on both website and desktop app versions.
  

Text reporting

• Standby : Indicating the algorithm is waiting for `Monitoring` conditions.
  
• Monitoring : Indicating that the algorithm is actively watching for signs of a `Potential Opportunity` environment.
  
• Potential Opportunity: Indicative that conditions are favorable for an entry.
  
• Enter: Indicative that the algorithm has produced an `Enter` alert/label.
  
• Exit: Indicative that the algorithm has produced an `Exit` alert/label.
  

Visuals

• The Price Trigger strength gradients can now be colored by Scalp Opportunity state. These colors can be chosen in the settings. If not selected, the chart defaults to the selected Price Trigger colors.
  
• The 1-Minute Price Trigger strength gradient optionality was removed due to constraints.
  
• The Monthly and Weekly price trigger have been set to `Off` as default (from `On`).
  

Bug Fixes

• Fixed bug causing LS candles to disappear when LS Text was toggled off.
  
• Fixed bug causing LS text to be erroneously displayed.
  
• Fixed bug allowing Scalp Opportunity to leak data without User Agreement being set.
  
• Fixed bug allowing an out-of-sequence and malformed pre-requisite check to pass, resulting in “late-stage” entries.
  
• Fixed issue with real-time labels disappearing after production due to faulty intra-bar state persistence.
  
• Fixed some inputs incorrect display parameters.
  

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Updates for 2025-11-16

Liquidity Status Data-Table

The Toolkit has been given a Data-table that displays the Liquidity Status for 5 intervals: 1-Min, 5-Min, 30-Min, 1-Hour, 1-Day.
This data-table is colored by the chosen bullish and bearish color choices for Liquidity Status. The table can be toggled on / off within the Settings.


Aesthetics

• Incremental thickness added to Price Triggers.
  

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Update 2025-11-29: Specificity Fix

Algorithm Update for Scalp Opportunity Alert:
Slight tweek to the algorithm to increase specificity and reduce the number of ill-timed entries with the Scalp Opportunity Alert. There will be a decrease in the overall number of `Enter` alerts but the ones that do fire should be more performant.

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Author's Instructions update - no change to indicator.

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2025-12-04 Update

Big Update! The Opportunity Scalp now operates on the Swing timeframe (the 30-minutes to 1-Hour)! This means you cannow use the Opportunity Scalp algorithm to find ideal and bullish liquidity situations at the start of a bullish price-trend change.

-- Quick Facts--
There are now two (2) types of Recovery Opportunity Alerts.
- The Scalp alerts are designed for short-term outlooks (~hours), and the algorithm is designed to monitor conditions for the 5-minute and lower timeframes.
- The Swing alerts are designed for longer-term outlooks (~days), and the algorithm is designed to monitor conditions between the 30-minute and 1-hour intervals.

The Scalp and Swing alerts work the same way - a quick review here:
(1) First, the algorithm identifies conditions indicative of incoming or on-going bearish liquidity (and likely price decline, although the algorithm is blind to price change direction). It identifies these conditions as they often ultimately lead to a substantial recovery once bullish liquidity returns. When it identifies these initial, bearish conditions, it enters the `Monitoring` state.

(2) Once the algorithm is in the `Monitoring` state, it starts actively monitoring for specific liquidity conditions that indicate the bearish liquidity is starting to be replaced with bullish liquidity. When this occurs, it goes into the `Potential` state.

(3) Once in the `Potential` state, the algorithm starts actively searching for decisive changes that indicate a price recovery is starting while attempting to avoid false flags. Once such a moment is found, the algorithm issues an `Enter` alert. In doing so, it checks to make sure there are no ceilings too close to it that might cause early rejection. It also calculates the most reasonable, furtherest (most high) anticipated point of resistance and sets that as the take-profit price.

(4) Once an `Enter` alert has been sent, the algorithm starts monitoring for two specific conditions: the first (1) is if the calculated resistance / ceiling , or the second (2) condition is if the liquidity conditions are no longer conducive to an on-going recovery. If either of these conditions are met, an `Exit` alert will be issued.

(5) For one bar after an `Exit` alert has been issued, the algorithm is allowed to reconsider under specific circumstances. If and only if on the bar after the `Exit` alert was issued, supportive conditions have returned, the algorithm is allowed to pre-emptively re-enter the `Potential` state. This is to help avoid random single-candle, bearish prints to de-rail an otherwise healthy price recovery `Enter`.

Below is a screenshot of the action behind the scenes with the debugging turned on:

- The green arrows show us when the algorithm is `Monitoring`
- The purple asterisks tell us when the algorithm is in the `Potential` state
- The blue arrows tell us when the algorithm is in an `Enter` state, and
- The red arrow tells us when the algorithm has issued an `Exit` alert.



-- Patch Notes ---

Algorithm Changes
Overall, these changes are designed to increase the specificity of the identification of the various conditions without loss of flexibility with regards to minimizing early-termination of "growing" recovery opportunities throughout its various life cycles. The main focus was on increasing the scope of "Price Recovery" without loss of specificity (introduction of too much noise).

The net result is that there should be significantly fewer false-alarms along with more confident and long-running `Enter` alerts.

The following steps were taken to achieve said goal:
- The algorithm was expanded to handle the 30-minute to 1-hour intervals. These are designated `Swing` opportunities.
- Previously, the take-profit ceiling was statically set at a known price-trigger. The algorithm now determines the ceiling dynamically. The algorithm now also calculates a dynamic floor to check against during turbulent conditions.
- The conditions for maintaining the `Monitor` state was relaxed to avoid pre-maturely denying opportunities. Initial criterion were made slightly more robust to balance. The net effect is that it is slightly harder to convince the algorithm to `Monitor` conditions but once convinced it is more difficult to have it change its mind back.
- The `Potential` state algorithm has been made more flexible and more prone to auto-renewal. This allows early recognition to not be punished as much if initial conditions are a tad rocky but ultimately resolve. Historically this would result in a "prematurely exited" potential state just prior to a recovery opportunity.
- The `Enter` state algorithm has increased drastically to appropriately handle the more dynamic `Potential` states. This step also has the newfound dynamic-ceiling algorithm that runs continuously.
- The `Exit` alert algorithm hardened slightly.
- For one (1) and only 1 bar after an `Exit` signal has been issued, to protect against premature exits, the algorithm is now allowed to reconsider. If on reconsidering it finds conditions are suitable, then it pre-maturely re-enters the `Potential` state so that it may then look for `Enter` opportunities.

General Changes
- The 5-minute price trigger can now be viewed on any interval.

Bug Fixes
- Fixed an internal sequence error that was causing "skips" when calculating and placing labels. This should reduce (if not fix) the lack of appropriate alert labels once an alert has been issued which has, until now, required a refresh to fix.
- Fixed error in the calculation used to determine price variance causing issues when deciding when to signal an `Enter` alert.