ICT IPDA Liquidity Matrix

The ICT IPDA Liquidity Matrix indicator is a specialized technical tool that identifies key institutional liquidity zones based on the Interbank Price Delivery Algorithm (IPDA) lookback periods. It provides traders with a framework to track high-value reference points and the daily opening price to better understand institutional price delivery and market sentiment.

Usage

The tool is designed to provide visual benchmarks for liquidity across different time horizons. It is particularly useful for traders following ICT methodologies who focus on "Draw on Liquidity" levels.

• Intraday Trading (LTF): On timeframes up to 1 hour, the indicator plots liquidity levels based on the previous 20, 40, and 60-hour highs and lows. This helps scalpers identify immediate targets for price expansion or reversal.
• Swing Trading (HTF): On daily and lower timeframes, the tool projects significant levels from the previous 20, 40, and 60 days. These act as major institutional supply and demand zones.
• Daily Open Reference: The daily opening price is plotted to help traders determine "Premium" versus "Discount" pricing relative to the day's start, which is a core component of intraday bias.
• Liquidity Sweeps: When price breaches a displayed level, the line automatically truncates to the bar of the breach and can trigger alerts, signaling that liquidity has been "swept."

Details

The indicator utilizes fixed lookback periods (20, 40, and 60) which are central to the IPDA theory of price delivery. It performs multi-timeframe requests to ensure that long-term data is accurately represented even on lower timeframe charts. A key technical feature is the Overlap Management logic; if multiple lookback periods result in the same price level (e.g., the 40-day high is the same as the 60-day high), the script removes redundant lines and labels to maintain chart clarity.

Settings

• Offset: Controls the horizontal shift of the labels and lines to the right of the current price action.
• Labels: Toggle between "Compact" (abbreviated names) and "Verbose" (detailed descriptions like "Buyside x HTF 60H").
• Daily Open: Toggle the visibility, style, and color of the daily opening price line.
• HTF Levels: Enable or disable the 20/40/60-day highs and lows, with independent color controls for highs (Buyside) and lows (Sellside).
• LTF Levels: Enable or disable the 20/40/60-hour highs and lows for intraday analysis.
• Text Utils: Customize the font family, size, and color of the on-chart labels.

FAQ

How do I interpret the different lines on the chart? Lines labeled "Buyside" represent historical highs (liquidity pools) while "Sellside" represents historical lows. HTF lines represent daily intervals, and LTF lines represent hourly intervals.

Why do some lines disappear or shorten? The script uses dynamic updates. If the price sweeps a level, the line stops at that bar to indicate the liquidity has been neutralized. Additionally, redundant overlapping levels are hidden to keep the chart clean.

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