ICT SMC Liquidity Grabs and OBs

The ICT SMC Liquidity Grabs and OBs indicator provides a comprehensive toolkit for Smart Money Concept traders, automating the detection of liquidity sweeps, institutional order blocks, and Optimal Trade Entry (OTE) zones. By combining these three core SMC pillars, the tool helps users identify high-probability reversal and continuation points with rule-based visual signals.

Usage

The indicator can be used to identify precise institutional entry models by looking for confluence between liquidity events and price retracements.

• Liquidity Grabs: The script monitors price action relative to the highest highs and lowest lows over a user-defined period. An "LG-H" or "LG-L" label appears when price sweeps these levels and closes back within the range, signaling a potential stop hunt.
• Order Blocks (OB): Following a liquidity grab, the script identifies displacement candles to plot highlighted OB zones. These represent areas of institutional interest where price is likely to find support or resistance.
• Fibonacci OTE Levels: The tool automatically calculates the 62% and 75% retracement levels (customizable) based on recent swing pivots. These zones highlight "Optimal Trade Entry" areas.
• Entry Signals: Green and red arrows trigger when a liquidity grab occurs, price enters the OTE zone, and a confirming candle (displacement) is detected.
• Take Profit Projections: The tool identifies potential targets based on previous swing structure (TP1) and a risk-based R-multiplier extension (TP2).

Details

The script executes logic to detect institutional footprints by requiring price displacement following a liquidity sweep. A liquidity grab is defined as a candle that exceeds the lookback high/low but fails to close beyond it. The Order Block logic is specifically tied to these grabs to ensure the zone originates from a confirmed sweep. The OTE levels utilize standard pivot high and low calculations to determine the relevant swing range for retracement measurements.

Settings

Toggles

• Show Liquidity Grabs: Enables or disables the detection and labeling of liquidity sweeps.
• Show Order Blocks: Toggles the visualization of institutional order block zones.
• Show Fibonacci OTE Levels: Displays the 62% and 75% retracement lines and entry zones.

Customization

• Fib Level 1 & 2: Adjusts the percentage values used for calculating the OTE zone (default 0.62 and 0.75).
• Lookback Period: Determines the number of bars used to calculate the high and low for liquidity detection.
• TP2 R-Multiplier: Sets the risk-to-reward ratio used for the secondary take-profit projection.

FAQ

How do I use the entry arrows?

Entry arrows are designed to signal confluence. A valid signal occurs when a liquidity sweep is followed by price entering a Fibonacci OTE zone with a confirming candle.

Can I change the sensitivity of the liquidity detection?

Yes, by adjusting the "Lookback Period" in the settings, you can define how far back the script looks to find the relevant high or low to sweep.

How can I access ICT SMC Liquidity Grabs and OBs?

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