Liquidity Sweep & Run Levels

The Liquidity Sweep & Run Levels indicator automatically identifies swing-based liquidity zones and visualizes market reactions when these levels are breached. By distinguishing between "sweeps" (liquidity grabs) and "runs" (trend continuations), the tool helps traders navigate market structure and time entries with higher precision.

Usage

The Liquidity Sweep & Run Levels tool can be used to identify key areas of interest where institutional liquidity typically resides. Depending on the selected mode, it serves different strategic purposes:

• Sweep Mode: Used to identify "stop-hunts" or false breakouts. A bullish sweep is signaled when price dips below a swing low but closes back above it, suggesting a potential reversal.
• Run Mode: Used to identify trend confirmation and breakouts. A bullish run is signaled when price successfully breaks and closes above a swing high, suggesting a continuation of upward momentum.

Traders can utilize the horizontal lines to observe historical liquidity zones and use the signal markers (▲/▼) as points of confluence for their existing strategies, such as Supply/Demand or Fair Value Gap (FVG) analysis.

Details

The indicator identifies swing highs and lows based on a user-defined lookback period. Once a swing point is detected, a horizontal line is drawn and stored in an array. The script dynamically monitors these lines to detect when the price intersects them:

• Level Tracking: Lines extend until they are "broken" by price action, at which point the line terminates to provide a clean historical record of where liquidity was taken.
• Mode Logic: The "Sweep" logic requires price to breach a level but fail to hold the break on a closing basis (depending on the specific price interaction), while the "Run" logic focuses on price maintaining movement beyond the level to signal a breakout.

Settings

• Mode: Toggles the calculation logic between "Sweep" (detects liquidity grabs) and "Run" (detects breakout continuations).
• Swing Length: Determines the sensitivity of swing point detection. Higher values identify major structural points, while lower values pick up more frequent, minor liquidity levels.
• Bullish Color: Sets the color for bullish liquidity lines and signals.
• Bearish Color: Sets the color for bearish liquidity lines and signals.
• Signals: Enables or disables the visual markers (▲ and ▼) on the chart.

FAQ

How do I access the Liquidity Sweep & Run Levels indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Which timeframes are best for this tool? The script is optimized for all timeframes, from 5-minute intraday charts to Daily structural analysis.

Can I use this for crypto and forex? Yes, it is designed for all major liquid asset classes including crypto, forex, indices, and equities.