PDH/PDL Liquidity Reversal - 15M Confirmed Close

The PDH/PDL Liquidity Reversal - 15M Confirmed Close indicator identifies high-probability reversal setups by detecting liquidity sweeps of the Previous Day High (PDH) and Previous Day Low (PDL). It generates signals when price moves beyond these key levels and subsequently confirms a reversal via a 15-minute candle close back within the previous day's range.

Usage

The Usage section describes how the script can be used to capture false breakouts (liquidity grabs) where price traps traders before reversing. For optimal results, it is designed for the 15-minute timeframe using daily range context.

• Liquidity Sweep Detection: The tool monitors when price moves above the PDH or below the PDL. These zones are treated as high-liquidity areas where stop hunts frequently occur.
• Confirmation Rule: To filter out "wick-only" moves, a BUY signal is generated only when price sweeps below the PDL and a 15M candle closes back above it. Conversely, a SELL signal requires a sweep above the PDH followed by a 15M candle closing back below it.
• Session Filtering: Users can restrict signals to specific high-liquidity sessions, such as the New York session, to avoid low-volume environments.
• Risk Management: Upon a signal, the indicator automatically projects an entry price, a stop loss (based on the current day's extreme plus a buffer), and a target based on a user-defined Risk:Reward ratio.

Details

The script utilizes several advanced logic layers to ensure signal quality and trade management:

• A+ Scoring System: It evaluates setups based on a 1-10 point scale. Points are awarded for rejection candle quality, RSI confirmation (e.g., RSI rising from oversold for buys), and session alignment.
• Structure-Based Trailing Stop: Once price reaches a specific profit threshold (default 1.5R), a trailing stop activates. It follows market structure by using higher lows for long positions and lower highs for short positions, supplemented by an ATR buffer to allow for price volatility.
• Historical Analysis: The script tracks the current day's high and low dynamically to set stop levels and ensures that only one signal per direction is taken daily if configured.
• Scanner Mode: The tool includes a built-in scanner that can monitor up to 10 symbols simultaneously, alerting the user when a liquidity sweep or confirmed reversal occurs on other tickers.

Settings

• Previous Day Levels: Toggles for displaying the PDH, PDL, and the Midline (50% level).
• PDH/PDL Session Source: Defines the time range and timezone used to calculate the previous day's high and low.
• Signal Rules: Options to require a "rejection" close (closing in the upper/lower half of the candle) and to limit signals to one per day per direction.
• A+ Scoring System: Settings to adjust the scoring thresholds, toggle the on-screen score panel, and enable RSI confirmation.
• Near PDH/PDL Alerts: Adjusts the percentage distance from a level that triggers a "near level" alert.
• Risk / Stop Settings: Sets the tick buffer for stop losses and the minimum Risk:Reward filter.
• Trailing Stop: Configures when the trailing stop activates, the pivot lookback for structure, and the ATR multiplier for the buffer.
• Session Filter: Restricts signal generation to a specific timeframe (e.g., New York Open).
• Scanner Mode: Enables multi-symbol monitoring for the specified list of tickers.
• Labels & Display: Controls the visibility of the trade info table, historical arrows, and visual offsets for chart labels.

FAQ

How do I confirm a high-quality setup? Look for setups that achieve an "A+" score. These typically involve a deep sweep into liquidity followed by a strong rejection candle that closes back inside the previous day's range during high-volume sessions.

What is the "Scanner Mode" used for? Scanner Mode allows you to monitor multiple assets at once. When the script is loaded on one chart, it can watch other symbols (like AAPL, TSLA, or Forex pairs) and alert you if they trigger a PDH/PDL setup.

How can I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.