Liquidity Concepts
Liquidity Concepts identify key zones where price grabs or flows toward liquidity.
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.
The liquidity above this high is grabbed as the price breaks that level and moves upward.
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.
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).
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.
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.
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.
Core Liquidity Map
The Core Liquidity Map is a sophisticated visualization tool designed to identify where significant buy and sell orders are likely clustered. By analyzing historical price action and volume distribution, it highlights "areas of interest" that have not yet been mitigated by current price action.
Liquidity Map
The heatmap projects horizontal lines from historical pivot points (Highs and Lows). These lines represent potential liquidity pools.
Intensity Coloring: The lines use a gradient color system. Darker/faded colors indicate lower historical activity, while bright, vibrant colors indicate high-volume nodes or "liquidity explosions."
Dynamic Mitigation: Lines are automatically removed (mitigated) once price crosses through them. If a sell liquidity level is breached by price moving up, or a buy level is breached by price moving down, the level is considered "cleared" and disappears from the map.
Volume Labels: Significant levels are labeled with a percentage (e.g., 100%) indicating the relative strength of the liquidity at that specific price bin.
Liquidity Bubbles (Visual Clusters)
When enabled, the "Bubbles" feature provides an immediate visual representation of volume intensity at pivot points.
Size-Based Tiers: The circles vary in size based on the relative volume of the pivot:
Tiny: 20% - 40% Volume intensity.
Small: 40% - 60% Volume intensity.
Normal: 60% - 80% Volume intensity.
Large (Huge): 80%+ Volume intensity (Ultra High Liquidity).
Color Logic: The bubbles match the heatmap gradient, allowing you to quickly spot where the "smart money" has previously stepped in.
3. Key Settings
Settings
Liquidity Grab
Enabled via checkbox. This feature identifies price "sweeps" where liquidity is taken from key levels.
The numerical input (e.g., 5) sets the detection sensitivity, while the two color pickers allow you to customize the visual signals for bullish and bearish grabs.
Liquidity Flow
Enabled via checkbox. It tracks the directional movement of market liquidity.
The sensitivity value (e.g., 10) controls the threshold for identifying a flow trend, and the color pickers define the appearance of upward and downward flow zones.
Buyside & Sellside
Enabled via checkbox.
Displays significant support and resistance zones.
Users can toggle between Adjusted (refined) or Extreme (absolute) pivot points and choose between Area or Line visualization styles using the dropdown menus.
Liquidity Map
Enabled via checkbox.
This is the core heatmap that projects historical volume clusters.
The dropdown menu selects the lookback depth (Short, Normal, or Macro), and the four-color palette defines the gradient intensity from low-activity zones to "Liquidity Explosions."
Bubbles
Enabled via checkbox.
Adds circular markers to the chart that scale based on volume.
The Threshold % input (e.g., 20) filters the display, ensuring only pivots with volume intensity above the specified percentage are shown to reduce chart noise.
Last updated