ICT SMC Liquidity Grabs and OBs

The ICT SMC Liquidity Grabs and OBs indicator provides a comprehensive trading assistant that automates the detection of liquidity sweeps, order blocks, and optimal trade entry (OTE) zones. This tool aims to streamline the workflow for traders following Smart Money Concepts by identifying high-probability reversal points where price action aligns across multiple confluences.

Usage

The script can be used to identify key areas of interest and potential entry signals based on ICT methodologies.

• Liquidity Grabs: The indicator monitors swing highs and lows within a user-defined lookback period. If price sweeps these levels but closes back within the range, an orange label ("LG-H" or "LG-L") appears, signaling a liquidity grab.
• Order Blocks: When a liquidity grab is followed by a strong directional candle, the script highlights the candle as an Order Block (OB). These zones are projected forward as colored boxes to serve as potential support or resistance.
• Optimal Trade Entry (OTE): The tool automatically calculates Fibonacci retracement levels (defaulting to 62% and 75%) between recent swing pivots.
• Combined Signals: A specialized buy or sell label is generated when liquidity has been swept, price enters the OTE zone, and a confirming candle appears.
• Exit Targets: The script provides Take Profit (TP) levels where TP1 is the previous market structure and TP2 is a customizable risk-reward multiplier.

Details

The indicator utilizes a combination of price action logic and pivot analysis to find its levels. Liquidity grabs are determined by comparing the current high/low against the highest/lowest values of the specified lookback. Order blocks are filtered using a volatility-based check to ensure the candle represents significant market movement. The OTE zones are dynamic, recalculating as new swing pivots are formed on the chart.

Settings

Main Settings

• Show Liquidity Grabs: Toggles the visibility of liquidity sweep labels.
• Show Order Blocks: Toggles the visualization of supply and demand zones formed after liquidity grabs.
• Show Fibonacci OTE Levels: Enables or disables the plotting of the 62% and 75% retracement lines.

Parameters

• Fib Level 1: Sets the first Fibonacci level for the OTE zone (default 0.62).
• Fib Level 2: Sets the second Fibonacci level for the OTE zone (default 0.75).
• Lookback Period: Defines the number of bars used to determine the highest highs and lowest lows for liquidity detection.
• TP2 R-Multiplier: Adjusts the distance of the second take-profit target based on the risk profile.

FAQ

How do I interpret the Liquidity Grab labels?

Labels marked "LG-H" indicate price has taken out a recent high and reversed, suggesting a bearish grab. "LG-L" indicates price has taken out a recent low and reversed, suggesting a bullish grab.

Can I change the OTE percentages?

Yes, the Fibonacci levels can be fully customized within the settings menu to align with your specific trading strategy.

How do I access ICT SMC Liquidity Grabs and OBs?

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