waterLiquidity Concepts

Liquidity Concepts identify key zones where price grabs or flows toward liquidity.


Liquidity Magnets

Liquidity Magnets highlight areas on the chart where a large concentration of traded volume previously occurred.

These zones tend to act like price magnets, often attracting future price action for reactions, retests, or continuation moves.

What the Liquidity Magnets Show

  • Horizontal liquidity zones plotted above and below price

  • Color-graded blocks representing the relative strength of each zone

  • Percentage labels (%) that rank liquidity zones by importance

Each zone represents a historical area where market participation was significantly higher compared to surrounding price levels.

How to Read the Percentages

  • 100% → strongest liquidity zone on the chart

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100% represents the strongest liquidity zone on the chart for that side. Buy-side and sell-side liquidity are ranked independently, meaning both sides can display their own 100% zone at the same time.

  • Lower % values → comparatively weaker liquidity concentration

  • Percentages are relative, not absolute volume numbers

  • Darker / more intense color = stronger liquidity presence

Think of the % as a liquidity strength score, not a probability.

How Traders Use Liquidity Magnets

  • Targets Price often gravitates toward high-percentage liquidity zones.

  • Reaction Zones Expect potential pauses, reversals, or accelerations when price enters a magnet.

  • Context, not signals Liquidity Magnets are best used alongside structure, trend, or confirmation tools.

  • Bias filtering Strong liquidity above price can act as resistance, while strong liquidity below price can act as support.

Beluga Liquidity Zones

Beluga Liquidity Zones visualize key price areas where significant trading activity occurred, highlighting both support-side and resistance-side liquidity with detailed volume distribution.

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These zones help traders understand where the market previously engaged the most and how buyers and sellers interacted inside each level.

What Beluga Liquidity Zones Show

Each liquidity zone contains multiple layers of information:

  • Liquidity Area (Zone Box) A highlighted price range where strong market participation occurred.

  • Buy vs Sell Volume Split Inside every zone, volume is divided into:

    • Buy Volume (%)

    • Sell Volume (%)

  • Delta Value Shows the imbalance between buyers and sellers within the zone.

  • Total Volume Strength (%) A percentage label that ranks each zone relative to other zones on the chart.

How to Read the Percentages

  • Buy / Sell % inside the zone Indicates how volume was distributed between buyers and sellers within that liquidity area.

  • Total Volume % (zone strength) Represents how important the zone is relative to all other displayed zones.

How Traders Use Beluga Liquidity Zones

  • Support & Resistance Context Strong liquidity zones often act as reaction areas where price may pause, reverse, or accelerate.

  • Bias Awareness Buy-heavy zones suggest stronger demand, while sell-heavy zones highlight supply pressure.

  • Retests & Reactions When price revisits a liquidity zone, it often responds due to previously concentrated activity.

  • Confluence Tool Best used alongside structure, trend, or confirmation tools — not as a standalone signal.

Liquidity Grab

This Liquidity Grab Indicator highlights areas where price briefly moves in one direction to "grab" liquidity before reversing. When a liquidity grab occurs through a large candle’s wick:

Upward Liquidity Grab (Trend Continuation)

An upward liquidity grab occurs when the price forms a large upper wick, signaling the market's attempt to break higher but quickly retracting before continuing to rise.

This pattern usually indicates a situation where short traders are liquidated as the price breaks above the previous high, forcing a continuation of the bullish trend.

Upward liquidity grab

The liquidity above this high is grabbed as the price breaks that level and moves upward.

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The chart marks this pattern with a triangle below the wick to highlight the bullish trend continuation as it signals the absorption of short positions.

Downward Liquidity Grab (Trend Continuation)

A downward liquidity grab happens when the price forms a large lower wick, briefly moving lower before reversing and continuing the downtrend.

This pattern represents the liquidity absorption where long traders are forced out of their positions, confirming the continuation of a bearish trend.

A downward liquidity grab

The market takes the liquidity below the previous low before moving lower, indicating that the bearish momentum remains intact.

Reversal and Liquidity Zones

Large wicks, especially those at reversal points, can indicate areas of high liquidity where significant buy or sell pressure is present.

These wicks often suggest that a large number of market orders were filled at these levels, and the price may either reverse from these points (in the case of a failed liquidity grab).

Reversal points
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These liquidity grabs provide key insights into market behavior, as they show where the market failed to continue in one direction before reversing or where it successfully absorbed the liquidity to push further in the direction of the trend.


Liquidity Flow

Midline range

This feature highlights significant swing moves with high liquidity, emphasizing the midline of these ranges as potential significant levels where price could react in the future.

Mid range
Mid Range

Green Boxes (Post-Downtrend)

Possible Pump: After a downtrend, a green box signals a potential pump.

The market may react positively around the midline of this range, indicating the possibility of upward price movement as liquidity shifts from the previous downtrend.

Red Boxes (Post-Uptrend or During Red Liquidity Flow)

Possible Dump: A red box appears after an uptrend or during periods of red liquidity flow, indicating the potential for a dump.

The price is likely to react at the midline of this range, potentially moving downward as liquidity shifts out of the previous uptrend.

These high liquidity swing areas offer critical levels to watch for future price reactions, with the midline acting as a key support/resistance level.

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These levels can guide traders in identifying likely points where price may consolidate, reverse, or continue its trend.


Buy & Sellside

The Buyside & Sellside feature introduces a clear visualization of recent support and resistance levels on the chart, accompanied by a percentage indicator showing the strength of each side.

  • Buyside Levels: Represent areas of strong buyer interest (support zones), highlighted in green, showing where price may find a floor.

  • Sellside Levels: Highlight areas of significant seller pressure (resistance zones), shown in red, indicating potential price ceilings.

Strength Percentage

Each zone includes a percentage metric to quantify the relative strength of buyers or sellers in that region, aiding decision-making.

This feature enhances the ability to anticipate price reactions at key levels, making it an essential tool for technical analysis and trade planning.


Settings

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Settings

  1. Enable Liquidity Magnets

    • Enabled: Displays Liquidity Magnet zones on the chart.

    • Max: Limits the maximum number of visible liquidity magnet zones.

    • Mitigation: Controls how zones react once price interacts with them (e.g., close-based interaction).

    • Colors: Customize colors for buy-side and sell-side liquidity magnets.

  2. Beluga Liquidity

    • Enabled: Displays Beluga Liquidity Zones on the chart.

    • Sensitivity: Controls how reactive liquidity zone detection is. Lower values show more zones, higher values focus on the most significant ones.

    • Max: Limits the maximum number of Beluga Liquidity zones displayed at once.

    • Colors: Customize colors for buy-side and sell-side liquidity zones.

  3. Liquidity Grab:

  • Enabled: When checked, the Liquidity Grab feature is active and will display liquidity grab signals on the chart.

  • Sensitivity (Number): Adjusts the sensitivity of the liquidity grab detection. A lower value increases sensitivity, showing more liquidity grabs, while a higher value reduces sensitivity, displaying only the most significant grabs.

  • Colors: Customizable color options for liquidity grabs in both upward and downward directions, allowing easy visual distinction between buy-side and sell-side liquidity grabs.

  1. Liquidity Flow:

  • Enabled: When checked, the Liquidity Flow feature is activated, showing areas where liquidity flow trends are present.

  • Sensitivity (Number): Controls the sensitivity of the liquidity flow detection. Lower values increase sensitivity, capturing more flow points, while higher values display only the strongest liquidity flows.

  • Colors: Allows customization of colors for liquidity flow, with different colors for upward and downward flow, making it easier to see directional liquidity trends on the chart.

  1. Buyside & Sellside:

  • Enabled: Displays recent support (Buyside) and resistance (Sellside) levels on the chart, along with their strength percentages.

  • Point Selection:

    • Extreme Points: Focuses on the most significant support and resistance levels.

    • Adjusted Points: Provides a refined view by smoothing and adjusting key levels for precision.

  • Visualization Style:

    • Line: Displays levels as single horizontal lines for minimal visual impact.

    • Area: Highlights support and resistance zones for a more comprehensive view.

  • Colors: Customize the colors for Buyside (support) and Sellside (resistance) zones to match your charting preferences.

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