ICT Concept Order Block | FVG | Liquidity Sweeps

The ICT Concept Order Block | FVG | Liquidity Sweeps indicator is a comprehensive technical analysis tool designed to automate the identification of key Smart Money Concepts (SMC) including order blocks, fair value gaps, and liquidity levels. It provides traders with a systematic way to interpret market structure and find institutional entry and exit points across various timeframes.

Usage

The script helps traders visualize several critical price action elements:

• Order Blocks: Identify supply and demand zones where institutional orders are likely clustered. Use demand zones for potential "buy" entries and supply zones for "sell" opportunities.
• Liquidity Sweeps: Track static and dynamic liquidity lines where retail stop losses are often concentrated. A sweep of these levels often precedes a price reversal.
• Fair Value Gaps (FVG): Detect imbalances in price delivery. These gaps can act as magnets (liquidity) or support/resistance zones depending on their width and market context.
• Major Levels: The tool automatically marks structural highs and lows to help determine the overall market trend and Break of Structure (BoS) points.

Details

The indicator implements several proprietary logic sets to refine ICT concepts:

• Refinement Algorithm: Unlike standard boxes, the "Refine" setting uses an error correction algorithm to pinpoint the most reactive portion of an order block.
• Filtering Logic: The FVG detection includes multi-stage filtering (from Aggressive to Very Defensive) to ensure only gaps with significant momentum or specific candle structures are displayed.
• Liquidity Detection: The script differentiates between static (horizontal) and dynamic (trend-based) liquidity, allowing for a more nuanced view of where "smart money" might target stops.

Settings

Order Block

• Refine Order Block: Toggles the error correction algorithm for supply and demand zones.
• Refine Type: Choose between "Defensive" (narrower, high-precision zones) or "Aggressive" (wider ranges).
• Show High/Low Levels: Displays major structural price levels.
• Show Last Support/Resistance: Toggles horizontal lines for the most recent structural pivot points.

FVG

• FVG Filter: Enables or disables the filtering algorithm.
• FVG Filter Types: Options include Very Aggressive, Aggressive, Defensive, and Very Defensive to control the quality and quantity of detected gaps.
• Show Demand/Supply FVG: Individually toggles the visibility of bullish and bearish gaps.

Liquidity

• Statics/Dynamics Liquidity Sensitivity: Adjusts how easily the script identifies liquidity lines. Higher values generally result in fewer, more significant lines.
• Statics/Dynamics Period Pivot: Sets the lookback period for identifying pivot points used in liquidity detection.

FAQ

How do I interpret the different FVG colors? Green-shaded boxes represent Demand FVGs (bullish imbalances), while red-shaded boxes represent Supply FVGs (bearish imbalances).

What is the difference between Defensive and Aggressive refinement? Defensive refinement focuses on a tighter, more precise area of the order block candle, while Aggressive refinement covers a broader range to ensure the entire institutional zone is captured.

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.