Williams %R Liquidity Sweeps

The Williams %R Liquidity Sweeps indicator identifies potential liquidity grabs within overbought and oversold zones using the Williams %R oscillator. By detecting pivot highs and lows in extreme territory, it highlights areas where price momentum may shift, signaling potential buying or selling opportunities.

Usage

The indicator is primarily used to identify "Sweeps" of previous oscillator pivots. These sweeps act as a confirmation of momentum exhaustion or a hunt for liquidity before a reversal.

• Buy Liquidity Sweep: Occurs when the Williams %R breaks above a previous oscillator pivot high that was established in the overbought zone. This is labeled on the chart and can indicate a potential bullish continuation or a liquidity grab.
• Sell Liquidity Sweep: Occurs when the Williams %R breaks below a previous oscillator pivot low established in the oversold zone. This indicates a potential bearish continuation or a sell-side liquidity grab.
• Support & Resistance: The horizontal lines drawn from pivot points serve as dynamic zones of interest. If a pivot is established outside the extreme zones (between -20 and -80), it is automatically removed to maintain focus on high-probability liquidity areas.

Details

The script utilizes the standard Williams %R formula to measure momentum. It specifically tracks pivot points (highs and lows) that occur only when the oscillator is in extreme zones (Overbought/Oversold).

When the oscillator reaches these levels, the script draws horizontal lines from the pivots. If the oscillator later crosses these lines, it triggers a "Sweep" event. The logic ensures that only relevant liquidity levels are displayed by dynamically managing an array of lines and removing those that are no longer valid or have been surpassed.

Settings

Oscillator Settings

• Source: The price data used for the oscillator calculation (default is Close).
• Oscillator Length: The lookback period for the Williams %R calculation.
• Overbought/Oversold Levels: Defines the thresholds (default -20 and -80) where the indicator searches for liquidity pivots.

Liquidity Sweep Settings

• Pivot Length: The number of bars required on each side to confirm a pivot high or low.
• Maximum Lines: The maximum number of support/resistance liquidity lines to display on the chart simultaneously.
• S & R Colors: Customization options for the colors of the resistance and support lines.
• Line Width: Adjusts the thickness of the liquidity level lines.

FAQ

How do I access the Williams %R Liquidity Sweeps?

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

What does a "Sweep" actually signify?

A sweep signifies that the oscillator has surpassed a previous peak or trough in extreme territory, suggesting that liquidity at those momentum levels has been cleared, often leading to a sharp move or reversal.

Why do some lines disappear?

Lines are automatically removed if they are "swept" by price or if the pivot they represent was not formed within the designated overbought or oversold zones, ensuring the chart remains clean and relevant.