ICT Liquidity Levels

The ICT Liquidity Levels indicator identifies and displays key liquidity zones, such as Buyside and Sellside Liquidity, by dynamically analyzing price swing points to highlight areas where market participants are likely to engage.

Usage

The indicator automatically plots horizontal levels on the chart based on detected swing highs and lows. Traders can use these levels to anticipate potential reversals or breakouts.

• Buyside Liquidity (BSL): Identified from swing highs, these levels represent areas where buy orders (often buy stops) are clustered.
• Sellside Liquidity (SSL): Identified from swing lows, these levels represent areas where sell orders (often sell stops) are clustered.
• Major Levels: If a swing's price movement exceeds the user-defined threshold, it is labeled as a "Major" level, indicating more significant historical price action.
• Consolidation (REQH/REQL): When multiple levels are identified in close proximity, the script merges them into a single zone, labeled as REQH (Relatively Equal Highs) or REQL (Relatively Equal Lows) to show significant liquidity clustering.

Details

The script utilizes a pivot-based detection method controlled by the "Base Swing Strength" parameter. For every detected pivot, the indicator calculates the percentage price change of the swing to determine its significance.

To maintain chart clarity, the indicator includes dynamic level management:

• Extension: Lines automatically extend to the current bar until they are traded through.
• Traded-Through Logic: When price crosses a level, the script can either delete it or reduce its opacity to indicate the liquidity has been "swept" or "tapped."
• Cleanup: To prevent clutter, levels are automatically removed after a configurable number of bars.

Settings

Detection Settings

• Base Swing Strength: The number of bars required on each side of a high or low to identify a pivot point.
• Major Level Threshold %: The minimum percentage price movement required for a swing to be classified as a "Major" level.

Visual & Label Settings

• Buyside/Sellside Color: Customizable colors for bullish and bearish liquidity zones.
• Line Style & Width: Options to change lines to solid, dashed, or dotted, and adjust their thickness.
• Show Labels: Toggles the visibility of text labels (e.g., BSL, SSL, REQH).
• Label Placement: Determines if labels appear at the start (Left) or the end (Right) of the line.

Traded & Cleanup Settings

• Keep Traded-Through Levels: If enabled, levels remain on the chart after being hit but with reduced visibility.
• Traded-Through Opacity %: Controls how transparent the levels become once they have been traded through.
• Delete After (Bars): The maximum age of a level before it is automatically deleted from the chart.

FAQ

How do I use the ICT Liquidity Levels indicator?

Add the script to your chart to see real-time liquidity zones. Adjust the swing strength to match your timeframe's volatility and use the levels as targets or points of interest for price action reversals.

What are REQH and REQL labels?

These labels stand for Relatively Equal Highs and Relatively Equal Lows. They appear when multiple liquidity levels are very close to each other, signaling a high-probability liquidity pool.

How can I get access to this tool?

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