Structural Liquidity Signals

The Structural Liquidity Signals indicator is a comprehensive toolkit designed to identify liquidity sweeps and structural shifts by combining pivot-based SFPs, Fair Value Gaps (FVG), and volatility-adjusted AVWAP stretch. It aims to filter market noise by "arming" setups at statistical extremes and triggering only after a confirmed micro Break of Structure (BOS).

Usage

The indicator can be used to identify high-probability reversal zones based on the confluence of liquidity grabs and momentum exhaustion.

• Liquidity Sweeps (SFP): Look for "SFP-P" (Pivot) or "SFP-L" (Level) labels. These indicate price has wicked beyond a key level (like a prior day high/low) and closed back within it, suggesting a stop-run.
• Arming & Triggering: The background shades green or red when the internal score reaches a percentile extreme (PR), signaling the script is "armed." A triangle trigger only appears after a micro BOS occurs on a closed bar.
• AVWAP Stretch: Use the Teal (Impulse) and Aqua (Daily) AVWAP lines to gauge how far price has deviated from "fair value." Significant distances normalized by ATR often precede mean reversion.
• FVG Zones: Colored boxes highlight the most recent Fair Value Gaps, which serve as potential magnets or reaction zones for price action.

Details

The tool uses a multi-layered logic to separate minor fluctuations from actionable setups:

• Composite Exhaustion Score: Combines AVWAP stretch, wick skew, and volume surprise into a bounded score using a tanh transform.
• Percentile Rank (PR): Normalizes the composite score against its own history (0-100), ensuring the indicator adapts to different market regimes and timeframes.
• Micro BOS Confirmation: The trigger logic requires a small break of structure, ensuring that "armed" exhaustion actually leads to a shift in order flow before a signal is generated.

Settings

Safety & Stability

• Confirm triggers at bar close: Ensures signals only print once the candle is finalized to prevent repainting.
• Use confirmed HTF values: Controls whether higher-timeframe trend data waits for the HTF bar to close.

Core & Context

• ATR Length: Sets the lookback for volatility normalization.
• Impulse AVWAP Anchor: Determines how frequently the impulse-based VWAP resets based on new price extremes.
• Show PDH/PDL/PWH/PWL: Toggles the display of Prior Day/Week Highs and Lows.

Liquidity & Microstructure

• Pivot Left/Right: Adjusts the number of bars required to confirm a swing high or low.
• Min Wick Ratio: Filters SFPs based on the size of the wick relative to the candle body.
• BOS length: Sets the window for detecting the micro break of structure.

Signal Gating

• Percent-Rank Lookback: The lookback period for calculating the 0-100 percentile rank.
• Arm thresholds (qHi/qLo): Sets the PR levels at which the script becomes "armed" for shorts or longs.

FAQ

• How do I interpret the PR value in the dashboard? A PR near 100 indicates a bearish extreme (overstretched), while a PR near 0 indicates a bullish extreme.
• Why did I see a background shade but no triangle trigger? The shading means the setup is "armed" due to exhaustion, but a triangle only appears if a micro Break of Structure (BOS) occurs before the arming period expires.
• How can I access Structural Liquidity Signals? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.