Liquidity Break Probability [PhenLabs]📊 Liquidity Break Probability
Version: PineScript™ v6
The Liquidity Break Probability indicator revolutionizes how traders approach liquidity levels by providing real-time probability calculations for level breaks. This advanced indicator combines sophisticated market analysis with machine learning inspired probability models to predict the likelihood of high/low breaks before they happen.
Unlike traditional liquidity indicators that simply draw lines, LBP analyzes market structure, volume profiles, momentum, volatility, and sentiment to generate dynamic break probabilities ranging from 5% to 95%. This gives traders unprecedented insight into which levels are most likely to hold or break, enabling more confident trading decisions.
🚀 Points of Innovation
Advanced 6-factor probability model weighing market structure, volatility, volume, momentum, patterns, and sentiment
Real-time probability updates that adjust as market conditions change
Intelligent trading style presets (Scalping, Day Trading, Swing Trading) with optimized parameters
Dynamic color-coded probability labels showing break likelihood percentages
Professional tiered input system - from quick setup to expert-level customization
Smart volume filtering that only highlights levels with significant institutional interest
🔧 Core Components
Market Structure Analysis: Evaluates trend alignment, level strength, and momentum buildup using EMA crossovers and price action
Volatility Engine: Incorporates ATR expansion, Bollinger Band positioning, and price distance calculations
Volume Profile System: Analyzes current volume strength, smart money proxies, and level creation volume ratios
Momentum Calculator: Combines RSI positioning, MACD strength, and momentum divergence detection
Pattern Recognition: Identifies reversal patterns (doji, hammer, engulfing) near key levels
Sentiment Analysis: Processes fear/greed indicators and market breadth measurements
🔥 Key Features
Dynamic Probability Labels: Real-time percentage displays showing break probability with color coding (red >70%, orange >50%, white <50%)
Trading Style Optimization: One-click presets automatically configure sensitivity and parameters for your trading timeframe
Professional Dashboard: Live market state monitoring with nearest level tracking and active level counts
Smart Alert System: Customizable proximity alerts and high-probability break notifications
Advanced Level Management: Intelligent line cleanup and historical analysis options
Volume-Validated Levels: Only displays levels backed by significant volume for institutional-grade analysis
🎨 Visualization
Recent Low Lines: Red lines marking validated support levels with probability percentages
Recent High Lines: Blue lines showing resistance zones with break likelihood indicators
Probability Labels: Color-coded percentage labels that update in real-time
Professional Dashboard: Customizable panel showing market state, active levels, and current price
Clean Display Modes: Toggle between active-only view for clean charts or historical view for analysis
📖 Usage Guidelines
Quick Setup
Trading Style Preset
Default: Day Trading
Options: Scalping, Day Trading, Swing Trading, Custom
Description: Automatically optimizes all parameters for your preferred trading timeframe and style
Show Break Probability %
Default: True
Description: Displays percentage labels next to each level showing break probability
Line Display
Default: Active Only
Options: Active Only, All Levels
Description: Choose between clean active-only view or comprehensive historical analysis
Level Detection Settings
Level Sensitivity
Default: 5
Range: 1-20
Description: Lower values show more levels (sensitive), higher values show fewer levels (selective)
Volume Filter Strength
Default: 2.0
Range: 0.5-5.0
Description: Controls minimum volume threshold for level validation
Advanced Probability Model
Market Trend Influence
Default: 25%
Range: 0-50%
Description: Weight given to overall market trend in probability calculations
Volume Influence
Default: 20%
Range: 0-50%
Description: Impact of volume analysis on break probability
✅ Best Use Cases
Identifying high-probability breakout setups before they occur
Determining optimal entry and exit points near key levels
Risk management through probability-based position sizing
Confluence trading when multiple high-probability levels align
Scalping opportunities at levels with low break probability
Swing trading setups using high-probability level breaks
⚠️ Limitations
Probability calculations are estimations based on historical patterns and current market conditions
High-probability setups do not guarantee successful trades - risk management is essential
Performance may vary significantly across different market conditions and asset classes
Requires understanding of support/resistance concepts and probability-based trading
Best used in conjunction with other analysis methods and proper risk management
💡 What Makes This Unique
Probability-Based Approach: First indicator to provide quantitative break probabilities rather than simple S/R lines
Multi-Factor Analysis: Combines 6 different market factors into a comprehensive probability model
Adaptive Intelligence: Probabilities update in real-time as market conditions change
Professional Interface: Tiered input system from beginner-friendly to expert-level customization
Institutional-Grade Filtering: Volume validation ensures only significant levels are displayed
🔬 How It Works
1. Level Detection:
Identifies pivot highs and lows using configurable sensitivity settings
Validates levels with volume analysis to ensure institutional significance
2. Probability Calculation:
Analyzes 6 key market factors: structure, volatility, volume, momentum, patterns, sentiment
Applies weighted scoring system based on user-defined factor importance
Generates probability score from 5% to 95% for each level
3. Real-Time Updates:
Continuously monitors price action and market conditions
Updates probability calculations as new data becomes available
Adjusts for level touches and changing market dynamics
💡 Note: This indicator works best on timeframes from 1-minute to 4-hour charts. For optimal results, combine with proper risk management and consider multiple timeframe analysis. The probability calculations are most accurate in trending markets with normal to high volatility conditions.
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[GrandAlgo] Liquidity Pivot Cloud - LPCLiquidity Pivot Cloud (LPC) is a visualization tool that extends all pivot levels to the right, creating a structured liquidity map across the chart. Instead of treating pivot points as static levels, LPC transforms them into a dynamic cloud, highlighting key areas where price has historically reacted.
Key Features:
Extended Pivot Levels – Automatically stretches all pivot highs and lows, forming a continuous liquidity zone.
Clear Structure – Provides an organized view of price action, making it easy to identify reaction zones.
Dynamic Liquidity Map – Helps traders spot potential liquidity sweeps and areas of price absorption.
How to Use:
Identify Liquidity Zones – Areas with multiple overlapping pivots signal strong liquidity pools.
Look for Reactions – Price often consolidates, wicks, or reverses around extended pivot clouds.
Combine with Confluence – Use alongside Fair Value Gaps, Institutional Price Blocks, or Market Structure shifts for higher probability setups.
LPC aligns with smart money concepts by revealing key liquidity areas where stop hunts, liquidity grabs, and institutional activity are likely to occur. It helps traders see where price is likely to be drawn before a major move, making it a valuable tool for those trading liquidity-based strategies.
Liquidity Levels/Voids (VP) [LuxAlgo]The Liquidity Levels/Voids (VP) is a script designed to detect liquidity voids & levels by measuring traded volume at all price levels on the market between two swing points and highlighting the distribution of the liquidity voids & levels at specific price levels.
🔶 USAGE
Liquidity is a fundamental market force that shapes the trajectory of assets.
The creation of a liquidity level comes as a result of an initial imbalance of supply/demand, which forms what we know as a swing high or swing low. As more players take positions in the market, these are levels that market participants will use as a historical reference to place their stops. When the levels are then re-tested, a decision will be made. The binary outcome here can be a breakout of the level or a reversal back to the mean.
Liquidity voids are sudden price changes that occur in the market when the price jumps from one level to another with little trading activity (low volume), creating an imbalance in price. The price tends to fill or retest the liquidity voids area, and traders understand at which price level institutional players have been active.
Liquidity voids are a valuable concept in trading, as they provide insights about where many orders were injected, creating this inefficiency in the market. The price tends to restore the balance.
🔶 SETTINGS
The script takes into account user-defined parameters and detects the liquidity voids based on them, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Liquidity Levels / Voids
Liquidity Levels/Voids: Color customization option for Unfilled Liquidity Levels/Voids.
Detection Length: Lookback period used for the calculation of Swing Levels.
Threshold %: Threshold used for the calculation of the Liquidity Levels & Voids.
Sensitivity: Adjusts the number of levels between two swing points, as a result, the height of a level is determined, and then based on the above-given threshold the level is checked if it matches the liquidity level/void conditions.
Filled Liquidity Levels/Voids: Toggles the visibility of the Filled Liquidity Levels/Voids and color customization option for Filled Liquidity Levels/Voids.
🔹 Other Features
Swing Highs/Lows: Toggles the visibility of the Swing Levels, where tooltips present statistical information, such as price, price change, and cumulative volume between the two swing levels detected based on the detection length specified above, Coloring options to customize swing low and swing high label colors, and Size option to adjust the size of the labels.
🔹 Display Options
Mode: Controls the lookback length of detection and visualization.
# Bars: Lookback length customization, in case Mode is set to Present.
🔶 RELATED SCRIPTS
Liquidity-Voids-FVG
Buyside-Sellside-Liquidity
Swing-Volume-Profiles
Liquidity Hunter - FattyTradesThis indicator is used to automatically identify and plot two forms of liquidity that will be targeted by market makers.
The first form of liquidity is based on multi-time fame highs and lows. It plots 1H, 4H, D, W, & M liquidity on an intraday chart to make it easier to identify. I believe hat liquidity is what drives the market and the most common form of this liquidity can be identified through higher time frame highs and lows. You can use whatever method you prefer to determine which liquidity pool will be targeted. When the liquidity is purged, it will be shown as dotted lines. This should not be used as traditional support/resistance, but rather as targets for the market.
The second form of liquidity is in the form of imbalances or fair value gaps. You can select a higher time frame to be plotted along with the current time frame you're viewing to identify imbalances that will likely be targeted intraday. We know that higher time frame fair value gaps work equally well as targets for market makers. When a higher time frame FVG is broken into, it can also act as a very powerful form of support and resistance. By default, when a fair value gap has been mitigated it will be removed from the chart, however this can be disabled.
Between these two forms of market maker liquidity targets on the chart, it will be easier to formulate a thesis intraday to determine where the market will move. It can help minimize the amount of switching between higher time frames that needs to be done, allowing you to identify targets while trading on your favorite intraday time frame for optimal risk/reward.
In the near future, I will build in alerting mechanism to alert when liquidity on higher time frames as been purged/mitigated.
Liquidity Heatmap [BigBeluga]The Liquidity Heatmap is an indicator designed to spot possible resting liquidity or potential stop loss using volume or Open interest.
The Open interest is the total number of outstanding derivative contracts for an asset—such as options or futures—that have not been settled. Open interest keeps track of every open position in a particular contract rather than tracking the total volume traded.
The Volume is the total quantity of shares or contracts traded for the current timeframe.
🔶 HOW IT WORKS
Based on the user choice between Volume or OI, the idea is the same for both.
On each candle, we add the data (volume or OI) below or above (long or short) that should be the hypothetical liquidation levels; More color of the liquidity level = more reaction when the price goes through it.
Gradient color is calculated between an average of 2 points that the user can select. For example: 500, and the script will take the average of the highest data between 500 and 250 (half of the user's choice), and the gradient will be based on that.
If we take volume as an example, a big volume spike will mean a lot of long or short activity in that candle. A liquidity level will be displayed below/above the set leverage (4.5 = 20x leverage as an example) so when the price revisits that zone, all the 20x leverage should be liquidated.
Huge volume = a lot of activity
Huge OI = a lot of positions opened
More volume / OI will result in a stronger color that will generate a stronger reaction.
🔶 ROUTE
Here's an example of a route for long liquidity:
Enable the filter = consider only green candles.
Set the leverage to 4.5 (20x).
Choose Data = Volume.
Process:
A green candle is formed.
A liquidity level is established.
The level is placed below to simulate the 20x leverage.
Color is applied, considering the average volume within the chosen area.
Route completed.
🔶 FEATURE
Possibility to change the color of both long and short liquidity
Manual opacity value
Manual opacity average
Leverage
Autopilot - set a good average automatically of the opacity value
Enable both long or short liquidity visualization
Filtering - grab only red/green candle of the corresponding side or grab every candle
Data - nzVolume - Volume - nzOI - OI
🔶 TIPS
Since the limit of the line is 500, it's best to plot 2 scripts: one with only long and another with only short.
🔶 CONCLUSION
The liquidity levels are an interesting way to think about possible levels, and those are not real levels.
Liquidity Spike PoolThe “Liquidity Pools” indicator is a tool for market analysts that stands out for its ability to clearly project the intricate zones of manipulation present in financial markets. These crucial territories emerge when supply or demand takes over, resulting in long shadows (wicks) on the chart candles. Imagine these regions as "magnets" for prices, as they represent authentic "liquidity pools" where the flow of money into the market is significantly concentrated. But the value of the indicator goes beyond this simple visualization: these zones, when identified and interpreted correctly, can play a crucial role for traders looking for profitable entry points. They can mutate into important bastions of support or resistance, providing traders with key anchor points to make informed decisions within their trading strategies.
A key aspect to consider is the importance of different time frames in analyzing markets. Larger time frames, such as daily or 4h, tend to host larger and more relevant liquidity zones. Therefore, a successful strategy might involve identifying these areas of manipulation over longer time frames through the use of this indicator, and then applying these findings to shorter time frames. This approach allows you to turn manipulation zones into crucial reference points that merit constant surveillance while making trading decisions on shorter time frames.
The indicator uses color to convey information clearly and effectively:
- Dark blue lines highlight candles with significant upper wick, signaling the possible presence of an important manipulation area in the considered area.
- Dark red lines are reserved for sizable candlesticks with significant upper wick, emphasizing situations that are particularly relevant to traders.
- Dark gray lines highlight candles with significant lower wick, providing a valuable indication of manipulation zones where the bid may have prevailed.
- White lines highlight sizable candlesticks with significant lower wick, clearly indicating situations where demand has been predominant and may have helped form a liquidity pool.
This indicator constitutes an important resource for identifying and clearly displaying candles with significant wicks, allowing traders to distinguish between ordinary market conditions and circumstances particularly relevant to their trading strategies. Thanks to the distinctive colors of the lines, the indicator offers intuitive visual guidance, allowing traders to make more informed decisions while carrying out their analyses.
Liquidity Levels MTF - SonarlabThis indicator uses Pivot Points to identify Liquidity Levels in the market. Liquidity Levels are levels in the market where you would expect price to be pulled towards.
Liquidity Levels by Sonarlab also has an option to show Higher Timeframe Liquidity Levels.
Below are the indicators settings:
Liquidity Mitigation Options
The Indicator has options for you to choose what happens to the Liquidity line/boxes once it has been mitigated. Either Keep them on the chart, or remove them.
Display Styles
Choose how the levels are displayed, either with Lines or Boxes.
Set the your Extension options, by keeping the lines/boxes "short" or extend to current price, or maximum to the right
Colors and Styles
Set colors and styles for all lines and boxes
Liquidity Heatmap (Nephew_Sam_)Liquidity Heatmap
This indicator plots a heatmap of resting liquidity above and below swing lows and multiple timeframes
The darker the color is or the larger the zone is, the more liquidity is lying there. If you think there are too many zones, you can increase the timeframes in the settings or just disable it.
Liquidity simply means orders such as stoplosses, buy/sell stops.
Disclaimer: You are free to use this code but your should be open source too
Liquidity Pro Map [ChartPrime]⯁ OVERVIEW
Liquidity Pro Map is a market-structure tool that simulates liquidity distribution by splitting price history into buy-side and sell-side profiles. Using candle volume and the standard deviation of close, the indicator builds two mirrored volume maps on the right-hand side of the chart. It also extends liquidity levels backwards in time until they are crossed by price, allowing you to see which zones remain untouched and where liquidity is most likely resting. Cumulative skew lines and highlighted POC levels give additional clarity on imbalance between buyers and sellers.
⯁ KEY FEATURES
Dual Liquidity Profiles: The chart is divided into buy-side (green) and sell-side (red) liquidity profiles, letting you instantly compare both sides of order flow.
Level Extension Logic: Each liquidity level is extended back in time until price crosses it. If not crossed, it persists all the way to the indicator’s lookback period, marking zones that remain “untapped.”
Dynamic Binning with Standard Deviation: The indicator distributes candle volumes into bins using close-price deviation, creating a more realistic liquidity map than static price levels.
priceDeviation = ta.stdev(close, 25) * 2
priceReference = close > open ? low - priceDeviation : high + priceDeviation
Cumulative Volume Skew Lines: Polylines on the right-hand side show the aggregated buy and sell volume profiles, making it easy to spot imbalance.
POC Identification: Highest-volume levels on both sides are marked as POC (Point of Control) , providing key zones of interest.
Clear Color Coding: Gradient shading intensifies with volume concentration—dark teal/green for buy zones, dark pink/red for sell zones.
⯁ HOW IT WORKS (UNDER THE HOOD)
Volume Distribution: Each bar’s volume is assigned to a price bin based on its reference price (close ± standard deviation offset).
Buy vs. Sell Splitting: If bins above last close price, volume is allocated to sell-side liquidity; otherwise, it’s allocated to buy-side liquidity.
Level Extension: Boxes marking liquidity bins extend back until crossed by price. If uncrossed, they anchor all the way to the start of the lookback window.
Cumulative Polylines: As bins are stacked, cumulative buy and sell values form skew polylines plotted at the right edge.
POC Levels: The highest-volume bin on each side is highlighted with labels and arrows, marking where the heaviest liquidity is concentrated.
⯁ USAGE
Use buy/sell profiles to see where liquidity is likely resting. Green shelves suggest potential support zones; red shelves suggest resistance or sell liquidity pools.
Watch untouched extended levels —these often become magnets for price as liquidity is swept.
Track POC levels as primary liquidity targets, where reactions or fakeouts are most common.
Compare cumulative skew lines to judge which side dominates in volume. Heavy buy skew may indicate absorption of sell pressure, and vice versa.
Adjust lookback period to switch between intraday liquidity maps and larger swing-based profiles.
Use separator feature to hide bins borders for better visual clarity.
Use as a confluence tool with OBs, support/resistance, and liquidity sweep setups.
⯁ CONCLUSION
Liquidity Pro Map transforms candle volume into a structured simulation of where liquidity may rest across the chart. By dividing buy vs. sell profiles, extending untouched levels, and marking cumulative skew and POC, it equips traders with a clear visual map of potential liquidity pools. This allows for better anticipation of sweeps, reversals, and areas of high market activity.
Liquidity Price Depth Chart [LuxAlgo]The Liquidity Price Depth Chart is a unique indicator inspired by the visual representation of order book depth charts, highlighting sorted prices from bullish and bearish candles located on the chart's visible range, as well as their degree of liquidity.
Note that changing the chart's visible range will recalculate the indicator.
🔶 USAGE
The indicator can be used to visualize sorted bullish/bearish prices (in descending order), with bullish prices being highlighted on the left side of the chart, and bearish prices on the right. Prices are highlighted by dots, and connected by a line.
The displacement of a line relative to the x-axis is an indicator of liquidity, with a higher displacement highlighting prices with more volume.
These can also be easily identified by only keeping the dots, visible voids can be indicative of a price associated with significant volume or of a large price movement if the displacement is more visible for the price axis. These areas could play a key role in future trends.
Additionally, the location of the bullish/bearish prices with the highest volume is highlighted with dotted lines, with the returned horizontal lines being useful as potential support/resistances.
🔹 Liquidity Clusters
Clusters of liquidity can be spotted when the Liquidity Price Depth Chart exhibits more rectangular shapes rather than "V" shapes.
The steepest segments of the shape represent periods of non-stationarity/high volatility, while zones with clustered prices highlight zones of potential liquidity clusters, that is zones where traders accumulate positions.
🔹 Liquidity Sentiment
At the bottom of each area, a percentage can be visible. This percentage aims to indicate if the traded volume is more often associated with bullish or bearish price variations.
In the chart above we can see that bullish price variations make 63.89% of the total volume in the range visible range.
🔶 SETTINGS
🔹 Bullish Elements
Bullish Price Highest Volume Location: Shows the location of the bullish price variation with the highest associated volume using one horizontal and one vertical line.
Bullish Volume %: Displays the bullish volume percentage at the bottom of the depth chart.
🔹 Bearish Elements
Bearish Price Highest Volume Location: Shows the location of the bearish price variation with the highest associated volume using one horizontal and one vertical line.
Bearish Volume %: Displays the bearish volume percentage at the bottom of the depth chart.
🔹 Misc
Volume % Box Padding: Width of the volume % boxes at the bottom of the Liquidity Price Depth Chart as a percentage of the chart visible range
Liquidity Swing Points [BackQuant]Liquidity Swing Points
This tool marks recent swing highs and swing lows and turns them into persistent horizontal “liquidity” levels. These are places where resting orders often accumulate, such as stop losses above prior highs and below prior lows. The script detects confirmed pivots, records their prices, draws lines and labels, and manages their lifecycle on the chart so you can monitor potential sweep or breakout zones without manual redrawing.
What it plots
LQ-H at confirmed swing highs
LQ-L at confirmed swing lows
Horizontal levels that can optionally extend into the future
Timed removal of old levels to keep the chart clean
Each level stores its price, the bar where it was created, its type (high or low), plus a label and a line reference for efficient updates.
How it works
Pivot detection
A swing high is confirmed when the highest high has swing_length bars on both sides that are lower.
A swing low is confirmed when the lowest low has swing_length bars on both sides that are higher.
Pivots are only marked after they are confirmed, so they do not repaint.
Level creation
When a pivot confirms, the script records the price and the creation bar (offset by the right lookback).
A new line is plotted at that price, labeled LQ-H or LQ-L.
Rendering and extension
Levels can be drawn to the most recent bar only or extended to the right for forward reference.
Label size and line color/transparency are configurable.
Lifecycle management
On each confirmed bar, the script checks level age.
Levels older than a chosen bar count are removed automatically to reduce clutter.
How it can be used
Liquidity sweeps: Watch for price to probe beyond a level then close back inside. That behavior often signals a potential fade back into the prior range.
Breakout validation: If price pushes through a level and holds on closes, traders may treat that as continuation. Retests of the level from the other side can serve as structure checks.
Context for entries and exits: Use nearby LQ-H or LQ-L as reference for stop placement or partial-take zones, especially when other tools agree.
Multi-timeframe mapping: Plot swing points on higher timeframes, then drill down to time entries on lower timeframes as price interacts with those levels.
Why liquidity levels matter
Prior swing points are focal areas where many strategies set stops or pending orders. Price often revisits these zones, either to “sweep” resting liquidity before reversing, or to absorb it and trend. Marking these areas objectively helps frame scenarios like failed breaks, successful breakouts, and retests, and it reduces the subjectivity of eyeballing structure.
Settings to know
Swing Detection Length (swing_length), Controls sensitivity. Lower values find more local swings. Higher values find more significant ones.
Bars until removal (removeafter), Deletes levels after a fixed number of bars to prevent buildup.
Extend Levels Right (extend_levels), Keeps levels projected into the future for easier planning.
Label Size (label_size), Choose tiny to large for chart readability.
One color input controls both high and low levels with transparency for context.
Strengths
Objective marking of recent structure without hand drawing
No repaint after confirmation since pivots are locked once the right lookback completes
Lightweight and fast with simple lifecycle management
Clear visuals that integrate well with any price-action workflow
Practical tips
For scalping: use smaller swing_length to capture more granular liquidity. Keep removeafter short to avoid clutter.
For swing trading: increase swing_length so only more meaningful levels remain. Consider extending levels to the right for planning.
Combine with time-of-day filters, ATR for stop sizing, or a separate trend filter to bias trades taken at the levels.
Keep screenshots focused: one image showing a sweep and reversal, another showing a clean breakout and retest.
Limitations and notes
Levels appear after confirmation, so they are delayed by swing_length bars. This is by design to avoid repainting.
On very noisy or illiquid symbols, you may see many nearby levels. Increasing swing_length and shortening removeafter helps.
The script does not assess volume or session context. Consider pairing with volume or session tools if that is part of your process.
Liquidity Channels [TFO]This indicator was built to visually demonstrate the significance of major, untouched pivots. With traders commonly placing orders at or near significant pivots, these areas are commonly referred to as Resting Liquidity. If we attribute some factor of growth over time, we can quickly visualize that certain pivots originated much further away than others, if their channels appear larger.
A pivot in this case is validated by the Liquidity Strength parameter. If set to 50 for example, then a pivot high is validated if its high is greater than the high of the 50 bars to the left and right of itself. This also implies a delay in finding pivots, as the drawings won't actually appear until validation, which would occur 50 bars after the original high has formed in this case. This is typical of indicators using swing highs and lows, as one must wait some period of time to validate the pivots in question.
The Channel Growth parameter dictates how much the Liquidity Channels will expand over time. The following chart is an example, where the left-hand side is using a Channel Growth of 1, and the right-hand side is using a Channel Growth of 10.
When price reaches these levels, they become invalidated and will stop extending to the right. The other condition for invalidation is the Delete After (Bars) parameter which, when enabled, declares that untouched levels will be deleted if the distance from their origin exceeds this many bars.
This indicator also offers an option to Hide Expanding Channels for those who just want the actual levels on their chart, without the extra visuals, which would look something like the below chart.
Liquidity Pair Impermanent Asset LossWith limited tracking of impermanent loss for liquidity pairs across all chains, I wanted a very simple display of live dollar value loss in an asset pair. This should allow you to set alerts based on how much you are down and take action if needed. The output column is by default set to show your losses in USD. For those that need it, I also setup an option to track the output in something other than USDT, e.g., GBP or ETH, etc..
Liquidity Pair EvalWhile there are many tools for generating your impermanent loss in liquidity pools, depending on your choice of chain, I was mostly concerned about monitoring the creep between the pairs. This V0.1 attempt should give us a general comparison of the selected asset returns given your time period and also display the percent loss assuming the initial purchase price values are input correctly.
This is a work in progress and I am open to suggestions to make this even better.
Liquidity Sweep Filter Strategy [AlgoAlpha X PineIndicators]This strategy is based on the Liquidity Sweep Filter developed by AlgoAlpha. Full credit for the concept and original indicator goes to AlgoAlpha.
The Liquidity Sweep Filter Strategy is a non-repainting trading system designed to identify liquidity sweeps, trend shifts, and high-impact price levels. It incorporates volume-based liquidation analysis, trend confirmation, and dynamic support/resistance detection to optimize trade entries and exits.
This strategy helps traders:
Detect liquidity sweeps where major market participants trigger stop losses and liquidations.
Identify trend shifts using a volatility-based moving average system.
Analyze volume distribution with a built-in volume profile visualization.
Filter noise by differentiating between major and minor liquidity sweeps.
How the Liquidity Sweep Filter Strategy Works
1. Trend Detection Using Volatility-Based Filtering
The strategy applies a volatility-adjusted moving average system to determine trend direction:
A central trend line is calculated using an EMA smoothed over a user-defined length.
Upper and lower deviation bands are created based on the average price deviation over multiple periods.
If price closes above the upper band, the strategy signals an uptrend.
If price closes below the lower band, the strategy signals a downtrend.
This approach ensures that trend shifts are confirmed only when price significantly moves beyond normal market fluctuations.
2. Liquidity Sweep Detection
Liquidity sweeps occur when price temporarily breaks key levels, triggering stop-loss liquidations or margin call events. The strategy tracks swing highs and lows, marking potential liquidity grabs:
Bearish Liquidity Sweeps – Price breaks a recent high, then reverses downward.
Bullish Liquidity Sweeps – Price breaks a recent low, then reverses upward.
Volume Integration – The strategy analyzes trading volume at each sweep to differentiate between major and minor sweeps.
Key levels where liquidity sweeps occur are plotted as color-coded horizontal lines:
Red lines indicate bearish liquidity sweeps.
Green lines indicate bullish liquidity sweeps.
Labels are displayed at each sweep, showing the volume of liquidated positions at that level.
3. Volume Profile Analysis
The strategy includes an optional volume profile visualization, displaying how trading volume is distributed across different price levels.
Features of the volume profile:
Point of Control (POC) – The price level with the highest traded volume is marked as a key area of interest.
Bounding Box – The profile is enclosed within a transparent box, helping traders visualize the price range of high trading activity.
Customizable Resolution & Scale – Traders can adjust the granularity of the profile to match their preferred time frame.
The volume profile helps identify zones of strong support and resistance, making it easier to anticipate price reactions at key levels.
Trade Entry & Exit Conditions
The strategy allows traders to configure trade direction:
Long Only – Only takes long trades.
Short Only – Only takes short trades.
Long & Short – Trades in both directions.
Entry Conditions
Long Entry:
A bullish trend shift is confirmed.
A bullish liquidity sweep occurs (price sweeps below a key level and reverses).
The trade direction setting allows long trades.
Short Entry:
A bearish trend shift is confirmed.
A bearish liquidity sweep occurs (price sweeps above a key level and reverses).
The trade direction setting allows short trades.
Exit Conditions
Closing a Long Position:
A bearish trend shift occurs.
The position is liquidated at a predefined liquidity sweep level.
Closing a Short Position:
A bullish trend shift occurs.
The position is liquidated at a predefined liquidity sweep level.
Customization Options
The strategy offers multiple adjustable settings:
Trade Mode: Choose between Long Only, Short Only, or Long & Short.
Trend Calculation Length & Multiplier: Adjust how trend signals are calculated.
Liquidity Sweep Sensitivity: Customize how aggressively the strategy identifies sweeps.
Volume Profile Display: Enable or disable the volume profile visualization.
Bounding Box & Scaling: Control the size and position of the volume profile.
Color Customization: Adjust colors for bullish and bearish signals.
Considerations & Limitations
Liquidity sweeps do not always result in reversals. Some price sweeps may continue in the same direction.
Works best in volatile markets. In low-volatility environments, liquidity sweeps may be less reliable.
Trend confirmation adds a slight delay. The strategy ensures valid signals, but this may result in slightly later entries.
Large volume imbalances may distort the volume profile. Adjusting the scale settings can help improve visualization.
Conclusion
The Liquidity Sweep Filter Strategy is a volume-integrated trading system that combines liquidity sweeps, trend analysis, and volume profile data to optimize trade execution.
By identifying key price levels where liquidations occur, this strategy provides valuable insight into market behavior, helping traders make better-informed trading decisions.
Key use cases for this strategy:
Liquidity-Based Trading – Capturing moves triggered by stop hunts and liquidations.
Volume Analysis – Using volume profile data to confirm high-activity price zones.
Trend Following – Entering trades based on confirmed trend shifts.
Support & Resistance Trading – Using liquidity sweep levels as dynamic price zones.
This strategy is fully customizable, allowing traders to adapt it to different market conditions, timeframes, and risk preferences.
Full credit for the original concept and indicator goes to AlgoAlpha.
Liquidity Sentiment Profile (Auto-Anchored) [LuxAlgo]
The Liquidity Sentiment Profile (Auto-Anchored) is an advanced charting tool that measures by combining PRICE and VOLUME data over specified anchored periods and highlights the distribution of the liquidity and the market sentiment at specific price levels. This version is a variation of the previously published Liquidity Sentiment Profile , wherewith this version allows users to select a variety of different anchoring periods, such as 'Auto', 'Fixed Range', 'Swing High', 'Swing Low', 'Session', 'Day', 'Week', 'Month', 'Quarter', and 'Year'
Liquidity refers to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly.
🔶 USAGE
A Liquidity Sentiment Profile (Auto-Anchored) is a combination of liquidity and a sentiment profile, where the right side of the profile highlights the distribution of the traded activity at different price levels, and the left side of the profile highlights the market sentiment at those price levels
The liquidity profile is categorized by assigning different colors based on the significance of the traded activity of the specific price levels, allowing traders to reveal significant price levels, such as support and resistance levels, supply and demand zones, liquidity gaps, consolidation zones, etc
The Liquidity Sentiment Profiles aim to present Value Areas based on the significance of price levels, thus allowing users to identify value areas that can be formed more than once within the range of a single profile
Level of Significance Line - displays the changes in the price levels with the highest traded activity (developing POC)
Buyside & Sellside Liquidity Zones - displays Liquidity Levels, also known as Supply and Demand Zones
🔶 SETTINGS
The script takes into account user-defined parameters and plots the profiles, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Liquidity Sentiment Profile
Anchor Period: The indicator resolution is set by the input of the Anchor Period.
Fixed Period: Applicable if the Anchor Period is set to 'Fixed Range' then the period of the profile is defined with this option
Swing Detection Length: Applicable if the Anchor Period is set to 'Swing High' or 'Swing Low' then the length required to detect the Swing Levels is defined with this option which is then used to determine the period of the profile
🔹 Liquidity Profile
Liquidity Profile: Toggles the visibility of the Liquidity Profiles
High Traded Nodes: Threshold and Color option for High Traded Nodes
Average Traded Nodes: Color option for Average Traded Nodes
Low Traded Nodes: Threshold and Color option for Low Traded Nodes
🔹 Sentiment Profile
Sentiment Profile: Toggles the visibility of the Sentiment Profiles
Bullish Nodes: Color option for Bullish Nodes
Bearish Nodes: Color option for Bearish Nodes
🔹 Buyside & Sellside Liquidity Zones
Buyside & Sellside Liquidity Zones: Toggles the visibility of the Liquidity Levels
Buyside Liquidity Nodes: Color option for Buyside Liquidity Nodes
Sellside Liquidity Nodes: Color option for Sellside Liquidity Nodes
🔹 Other Settings
Level of Significance: Toggles the visibility of the Level of Significance Line
Price Levels, Color: Toggles the visibility of the Profile Price Levels
Number of Rows: Specify how many rows each profile histogram will have. Caution, having it set to high values will quickly hit Pine Script™ drawing objects limit and fewer historical profiles will be displayed
Profile Width %: Alters the width of the rows in the histogram, relative to the profile length
Profile Range Background Fill: Toggles the visibility of the Profiles Range
🔶 RELATED SCRIPTS
Liquidity-Sentiment-Profile
Buyside-Sellside-Liquidity
ICT-Concepts
Liquidity Spectrum Visualizer [BigBeluga]🔵 OVERVIEW
The Liquidity Spectrum Visualizer is a smart tool for exposing hidden liquidity zones by combining a dynamic volume profile, clear liquidity levels, and intuitive volume bubbles directly on your price chart. It shows you exactly where significant volume is clustering inside your chosen lookback period — highlighting where big market participants may be defending price or planning breakouts.
🔵 CONCEPTS
Volume Profile Bins: Breaks your custom lookback range into 100 fine price bins, calculating total volume per bin to create a precise vertical liquidity histogram.
Liquidity Levels: Bins with high relative volume automatically plot as horizontal lines — thicker and brighter lines signal stronger liquidity concentrations.
Dynamic Coloring: Profile bins and liquidity levels adjust their colors live based on whether current price is trading above (support) or below (resistance).
Volume Bubbles: Each candle displays a bubble at its HLC3 price —
- The bubble’s size shows relative candle volume.
- Its color gradient indicates bullish or bearish volume: greenish for bullish candles, orange for bearish.
Bubble Labels: The largest bubbles automatically label the actual volume amount, revealing big hidden flows.
Range Box High/Low: Marks the absolute swing high and low inside the lookback window, clearly framing the active liquidity zone.
🔵 FEATURES
Smart, auto-scaled volume profile up to 200 candles (or custom).
Liquidity levels with dynamic thickness and color based on real-time volume.
Bubbles sized and colored to show both volume magnitude and bullish/bearish bias.
Largest bubbles labeled for fast detection of high-impact bars.
High and low price labels clearly show the analyzed range.
Toggle Volume Profile, Liquidity Levels, and Bubbles independently.
🔵 HOW TO USE
Watch for thick, bright liquidity levels — these zones mark where large orders or stop clusters are likely hidden.
Use dynamic coloring: if price is above a level, it’s support; if below, it’s resistance.
Pay special attention to big bubbles: these mark sudden spikes in traded volume and can signal absorption, traps, breakouts or significant price levels.
Combine with your existing confluence tools to confirm breakouts or fakeouts around visible liquidity clusters.
🔵 CONCLUSION
The Liquidity Spectrum Visualizer transforms hidden order flow into an intuitive, color-coded map. You see at a glance where price is absorbing, consolidating, or ready to break — all powered by real-time volume behavior and smart visuals. It’s a must-have tool for traders who want to read liquidity and react ahead of the crowd.
Liquidity Location Detector [BigBeluga]
This indicator helps traders identify potential liquidity zones by detecting significant volume levels at key highs and lows. By using color intensity and scoring numbers, it visually highlights areas where liquidity concentration may be highest while incorporating trend analysis through EMAs.
🔵Key Features:
Liquidity Zone Detection: Automatically detects and marks areas where significant volume has accumulated at swing highs and lows.
Dynamic Box Plotting: Draws liquidity boxes at key highs and lows, updating based on market conditions.
Volume Strength Scaling: Uses a scoring system to rank liquidity zones, helping traders identify the strongest areas.
Color Intensity for Volume Strength: More transperent color indicate less liquidity, while less transperent represent stronger volume concentrations.
Customizable Display: Users can adjust the number of displayed liquidity zones and modify colors to suit their trading style.
Real-Time Liquidity Adaptation: As price interacts with liquidity zones, the indicator updates dynamically to reflect changing market conditions.
Auto-Stopping Liquidity Zones: Liquidity boxes automatically stop extending to the right once price crosses them, preventing outdated zones from interfering with live market action.
Trend Analysis with EMAs: Includes two optional EMAs (fast and slow) to help traders analyze market trends. Users can enable or disable these EMAs in the settings and use crossover signals for trend confirmation.
🔵Usage:
Identify Key Liquidity Areas: Use color intensity and transparency levels to determine high-impact liquidity zones.
Support & Resistance Confirmation: Liquidity zones can act as potential support and resistance levels, enhancing trade decision-making.
Market Structure Analysis: Observe how price interacts with liquidity to anticipate breakout or reversal points.
Scalping & Swing Trading: Works for both short-term and long-term traders looking for liquidity-based trade setups.
Liquidation Map Insight: A liquidity map highlights areas where large amounts of leveraged positions (both long and short) are likely to get liquidated. Since many traders use leverage, sharp price movements can trigger a cascade of liquidations, leading to rapid price surges or drops. Monitoring these liquidity zones and trends helps traders anticipate where price might react strongly.
Liquidity Location Detector is an essential tool for traders seeking to map out potential liquidity zones, providing deeper insights into market structure and trading volume dynamics.
Liquidity Pools [LuxAlgo]The Liquidity Pools indicator identifies and displays estimated liquidity pools on the chart by analyzing high and low wicked price areas, along with the amount, and frequency of visits to each zone.
🔶 USAGE
Liquidity Pools are areas where smaller participants are likely to place stop-limit orders to manage risks at reasonable swing points. These zones attract institutional traders who use the pending orders as liquidity to enter larger positions, aiming to influence price movements. By monitoring these zones, traders can anticipate market movements and potentially benefit from these dynamics.
Beyond general liquidity theory, identifying zones consistently visited by price aids in using them as support and resistance zones. By analyzing these areas, we can assess how effectively participants enter or exit these zones, helping to gauge their importance.
In the screenshots below, we will explore both sides of the same chart in more detail to display how each zone could be viewed from a bullish and bearish perspective.
Bullish Zones Example:
Bearish Zones Example:
🔶 DETAILS
The method behind this indicator focuses on identifying a swing point and tracking future interactions with it. It adaptively identifies high and low "potential zones". These zones are monitored over time; if a zone meets the user-defined criteria, the script marks and displays these zones on the chart.
🔹 Identification
The method to identify Liquidity Pools in this indicator revolves around 3 main parameters. By utilizing these settings, the indicator can be tailored to produce zones that fit the specific strategic needs of each trader.
Zone Identification Parameters
Zone Contact Amount: This setting determines the number of times each zone must be in contact with the price (and bought or sold out of) before being identified by the indicator as a Liquidity Pool.
For example: When a zone is first displayed, it is considered as having been reached 1 time. When the zone is re-tested for the first time, this is considered the 2nd contact, since the price has seen the zone a total of 2 times.
Bars Required Between Each Contact: This is used to rule out (or in) consecutive candles reaching each zone from the calculation, adding a separation length between zone contact points to refine the zones produced.
For example: When set to "2", the first contact point (first re-test) will be ignored by the script if it is not at least 2 bars away from the initial zone proposal point.
Confirmation Bars: After a zone has reached the desired Contact Amount, this setting will cause the script to wait a specified number of bars before identifying a zone. While this might initially seem counterintuitive, by waiting, we are able to watch the market's reaction to the proposed zone and respond accordingly. If the price were to continue through the potential liquidity zone Immediately, it would not be logical to consider this area as a valid Liquidity Pool.
Displayed in this screenshot, you will see the specific points we are looking for in order to identify these zones.
🔹 Display
After a Liquidity Pool is identified, its boundary line is extended to the current price to keep it in view for reference. This extension will continue until the zone is mitigated (price has closed above or below the zone), after which it will stop extending.
Candles can optionally be colored when returning to the most recent Liquidity Pool if it is still unmitigated, and will only color after the zone is displayed on the chart. Because of this, if a candle is colored within a zone, then its color comes from being inside a previously unmitigated zone.
🔹 Volume
Each time a candle overlaps an Unmitigated Zone, a percentage of its volume will be accumulated to the total for each specific zone. The volume total is displayed on the right end of the extended boundary lines.
This volume data could help to determine the importance of specific zones based on the amount of volume traded within.
Note: This volume is fractional to the percentage of candles that are contained within the zone. If a candle is 50% within a zone, The zone will receive 50% of the candle's volume added to its current total.
🔶 SETTINGS
See above for a more detailed explanation of the "Zone Identification" parameters.
Zone Contact Amount: The number of times the price must bounce from this zone before considering it as a liquidity pool.
Bars Required Between Each Contact: The number of bars to wait before checking for another zone contact.
Confirmation Bars: The number of bars to wait before identifying a zone to confirm validity.
Display Volume Labels: Toggles the display for the volume readout for each Liquidity Pool.
Fill Candles Inside Zones: Toggles the display of colored candles within Liquidity Pools.
Liquidity VisualizerThe "Liquidity Visualizer" indicator is designed to help traders visualize potential areas of liquidity on a price chart. In trading, liquidity often accumulates around key levels where market participants have placed their stop orders or pending orders. These levels are commonly found at significant highs and lows, where traders tend to set their stop-losses or take-profit orders. The indicator aims to highlight these areas by drawing unbroken lines that extend indefinitely until breached by the price action.
Specifically, this indicator identifies and marks pivot highs and pivot lows, which are price levels where a trend changes direction. When a pivot high or pivot low is formed, it is represented on the chart with a horizontal line that continues to extend until the price touches or surpasses that level. The line remains in place as long as the level remains unbroken, which means there is potential liquidity still resting at that level.
The concept behind this indicator is that liquidity is likely to be resting at unbroken pivot points. These levels are areas where stop-loss orders or pending buy/sell orders may have accumulated, making them attractive zones for large market participants, such as institutions, to target. By visualizing these unbroken levels, traders can gain insight into where liquidity might be concentrated and where potential price reversals or significant movements could occur as liquidity is taken out.
The indicator helps traders make more informed decisions by showing them key price levels that may attract significant market activity. For instance, if a trader sees multiple unbroken pivot high lines above the current price, they might infer that there is a cluster of liquidity in that area, which could lead to a price spike as those levels are breached. Similarly, unbroken pivot lows may indicate areas where downside liquidity is concentrated.
In summary, this indicator acts as a "liquidity visualizer," providing traders with a clear, visual representation of potential liquidity resting at significant pivot points. This information can be valuable for understanding where price might be drawn to, and where large movements might occur as liquidity is targeted and removed by market participants.
Liquidity Sweeps [UAlgo]
🔶 Description:
This script, "Liquidity Sweeps by UAlgo" aims to identify and visualize potential liquidity sweeps in the market, assisting traders in spotting significant price levels where liquidity may be targeted by large orders. The script highlights pivot points and draws support and resistance lines based on user-defined parameters. When a liquidity sweep occurs, the script dynamically adjusts the displayed lines and provides annotations, signaling potential buying or selling opportunities.
🔶 Key Features:
Pivot Analysis: Utilizes pivot points to identify potential support and resistance levels.
Liquidity Sweep Detection: Dynamically adjusts support and resistance lines based on price action, highlighting liquidity sweep events.
Buy Side Liquidity Sweep Example :
Sell Side Liquidity Sweep Example :
Liquidity areas waiting to be swept are shown as "pivot high" in red and "pivot low" in green.
Customizable Parameters: Allows users to adjust parameters such as pivot length, maximum lines to draw, colors, and line width to suit their trading preferences.
Real-time Annotations: Provides real-time annotations on the chart when liquidity sweep events are detected, aiding traders in decision-making.
Disclaimer:
This script is provided for educational and informational purposes only. Trading involves risks, and it is essential to conduct thorough research and exercise caution when making financial decisions. The author does not guarantee the accuracy or completeness of the information provided by this script, and any actions taken based on this information are at the user's own risk.
Liquidity Concepts [BigBeluga]The Liquidity Concepts indicator is designed to represent the liquidity on the chart using pivot points as potential stop-losses / liquidity grabs.
The indicator is facilitated by a market structure detector and pivot points to identify resting liquidity / stop-loss levels.
A liquidity grab or a stop-loss hunt is when retail traders place their stop-loss orders at recent highs / most recent highs or lows. This is a spot where big players attempt to push the market to trigger all the stop-loss orders and gain a better entry in their favor.
🔶 CALCULATION
The indicator uses the Higher Lower script made by @LonesomeTheBlue to determine these pivot points. When a pivot point is formed, it is displayed on the chart with the corresponding symbol (HH - HL - LH - LL). When one of these points is broken, a line is drawn between the pivot point and the candle that broke it.
A liquidity grab is only recognized after it has occurred, and it is represented with a box showing all the candles that were involved in the sweep / stop-loss hunt.
A pivot point is established only after the selected lookback period and cannot be printed beforehand in any manner. This ensures that it captures the highest point within the lookback period following the candle formation.
An HL (Higher Low) point is established when it is lower than an HH (Higher High) point, whereas an LH (Lower High) point is established when it is higher than an LL (Lower Low) point.
Boxes are formed in two different types: Major and Minor.
- Major boxes occur when LH or HL points are breached, with their high or low point crossing above or below in the specific lookback period.
- Minor boxes occur when HH or LL points are breached, with their high or low point crossing above or below in the specific lookback period.
Minor points are less efficient since they represent key highs and lows, and before taking out those liquidity levels, the HL and LH points should be cleared.
Representation of Pivot Point Formation:
Liquidity wicks are a minor representation of a stop-loss hunt during the retracement of a pivot point. This means that a pivot point is broken only by the wick and not by the entire body.
Bigger wick = more liquidity
Lower wick = less liquidity
Liquidity wicks can be used as trade confirmation or targets for your entry to enhance accuracy.
Users have the option to display candle coloring based on the currently detected trend.
🔶 VERIFICATION
Users have the option to specify the verification length for when the liquidity should occur. This means that if the length is set to 7, the indicator will search for the liquidity formation within the last 7 candles; otherwise, it will be considered invalid.
🔶 CONCEPTS
The whole idea is to help find possible zone of stop loss hunting helping having a better entry in our trading, we can utilize a lot more tools, and this shoud be used as confluence only
🔶 OPTIONS
Users have complete control over the settings, allowing them to:
- Disable pivot points.
- Disable the display of boxes.
- Disable liquidity wicks.
- Customize colors to their preferences.
- Adjust lookback settings for historical data analysis.
- Modify candle coloring settings.
- Adjust the text size of labels for better readability and customization.
🔶 RECAP
Box => Represents liquidity formation / stop-loss hunt
- Minor Box HH / LL point
- Major Box LH / HL point
Liquidity Wicks => Formed when a pivot point is broken only by the wick
BOS / CHoCH => Calculated using the pivot points from the @LonesomeTheBlue script
🔶 RELATED SCRIPTS
Price Action Concepts =>
Liquidity Breakout - Strategy [presentTrading]- Introduction and How It Is Different
The Liquidity Breakout Strategy is a unique trading strategy that focuses on identifying and leveraging patterns in market price data. This strategy, mainly inspired by the script "Master Pattern" by LuxAlgo, takes a different approach from many traditional strategies that rely on technical indicators or fundamental analysis. Instead, the Liquidity Breakout is based on the concept of contraction detection and liquidity levels. This approach allows traders to identify potential trading opportunities that other strategies might miss.
BTCUSDT 6h
The strategy is different from other trading strategies because it uses a unique combination of pattern detection, liquidity levels, and user-defined trading direction. This combination allows the strategy to adapt to various market conditions and trading styles, making it a versatile tool for traders.
- Strategy: How It Works
1. Contraction Detection: The strategy uses a lookback period defined by the user (default is 10 bars) to identify contractions in the market. A contraction is a period where the market is consolidating, often followed by a significant price movement. The strategy identifies contractions by finding pivot highs and pivot lows within the lookback period. If a pivot high is lower than the previous pivot high and a pivot low is higher than the previous pivot low, a contraction is detected.
2. liquidity Levels:
What are Liquidity levels? Liquidity levels, also known as liquidity pools or zones, are price levels at which there is a significant amount of trading activity. They are often areas where large institutional traders (like banks or hedge funds) have placed orders. These levels are important because they can act as support or resistance levels, and price often reacts at these levels.
In the context of this strategy, liquidity levels are used to identify potential entry and exit points for trades. When the price reaches a liquidity level, it could indicate a potential trading opportunity. For example, if the price breaks through a liquidity level, it could signal the start of a new trend. On the other hand, if the price approaches a liquidity level and then reverses, it could signal a potential reversal.
The strategy uses these two elements to identify potential trading opportunities. When a contraction is detected, the strategy will look for a breakout in the direction of the trend. If the breakout occurs at a liquidity level, the strategy will execute a trade.
The strategy also allows traders to set their stop loss based on either the Average True Range (ATR) or a fixed percentage. This flexibility allows traders to manage their risk according to their personal risk tolerance and trading style.
- Trade Direction
One of the unique features of the Master Pattern Strategy is the ability to choose the trading direction. Traders can choose to trade in the "Long" direction, the "Short" direction, or "Both". This feature allows traders to adapt the strategy to their personal trading style and market outlook.
For example, if a trader believes that the market is in an uptrend, they can choose to trade only in the "Long" direction. Conversely, if the market is in a downtrend, they can choose to trade only in the "Short" direction. If the trader believes that the market is volatile and there are opportunities in both directions, they can choose to trade in "Both" directions.
- Usage
To use the strategy, traders need to input their preferred settings, including the contraction detection lookback period, liquidity levels, stop loss type, and trading direction. Once these settings are input, the strategy will automatically detect potential trading opportunities and execute trades according to the defined parameters.
- Default Settings
The default settings for the Master Pattern Strategy are as follows:
Contraction Detection Lookback: 10
Liquidity Levels: 20
Stop Loss Type: ATR
ATR Length: 20
ATR Multiplier: 3.0
Fixed Percentage: 0.01
Trading Direction: Both
These settings can be adjusted according to the trader's personal preferences and market conditions. It's recommended that traders experiment with different settings to find the ones that work best for their trading style and goals.
