Liquidity Void Detector + Pro Signals

The Liquidity Void Detector + Pro Signals indicator identifies large displacement candles that signify rapid price movements, creating shaded zones where liquidity may be imbalanced. This tool helps traders visualize areas of potential price attraction or reversal by detecting "voids" characterized by high body-to-wick ratios and significant size relative to the Average True Range (ATR).

Usage

The Usage section highlights how to interpret the visual elements and signals provided by the tool. Traders can use the shaded boxes to identify untested price gaps where future market reactions are likely to occur.

• Void Boxes: Yellow or orange shaded regions appear when a liquidity void is detected. These boxes project forward to mark levels where the market may seek to rebalance price.
• LONG/SHORT Signals: Labels appear on the first bar of a valid void if the candle structure and momentum align. A "LONG" signal indicates upward displacement with positive momentum, while a "SHORT" signal indicates downward displacement with negative momentum.
• Probability Meter: The on-chart dashboard tracks the status of detected voids, showing the percentage of voids that remain unfilled, partially filled, or fully retested by subsequent price action.
• Filtering: Use the settings to filter out small or "noisy" candles, ensuring only high-conviction displacement moves trigger a void detection.

Details

The script operates by analyzing the ratio between a candle's body and its total range (wicks). A "Liquidity Void" is defined as a candle where the body is significantly larger than the average wick size and the total range exceeds a specific multiplier of the recent ATR.

To maintain chart clarity, the script employs a non-overlapping logic; it will not draw a new void box if the current price is already within an active, existing void. Momentum confirmation is calculated using the slope of price change over a user-defined lookback period, ensuring that signals are only generated during active trends rather than exhaustive moves.

Settings

• Body/Wick Ratio For Void: Sets the minimum required ratio of candle body to average wick size to qualify as a displacement candle.
• Min Candle Size vs ATR For Void: A multiplier applied to the ATR to ensure the candle is significantly larger than recent volatility.
• Void Box Length (Bars): The number of bars the shaded box extends into the future.
• Momentum Confirm Length: The lookback period used to calculate the momentum slope for LONG/SHORT signals.
• Min Momentum Slope Signal: The threshold the momentum slope must cross to trigger a signal.
• Signal Label Size: Adjusts the visual size of the "LONG" and "SHORT" labels.
• Dashboard Position: Determines the corner of the chart where the probability meter is displayed.
• Show Probability Meter: Toggles the visibility of the dashboard.
• Max Boxes On Chart: Limits the number of concurrent void boxes to prevent chart clutter.

FAQ

How do I interpret the Probability Meter? The meter shows how often historical voids on the current chart have been filled. A high "Unfilled" percentage suggests that price frequently continues in the direction of the void without returning, while a high "Full Fill" percentage suggests voids often act as magnets for price retests.

Are the signals repainting? No, the Liquidity Void Detector + Pro Signals uses only confirmed bar data. Signals and boxes are calculated and drawn once a bar closes, ensuring they remain fixed on the chart.

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