Liquidity Timeframe Stack Map

The Liquidity Timeframe Stack Map indicator provides a multi-timeframe liquidity context tool that compares current-chart sweep behavior with higher-timeframe liquidity shelves to identify high-probability reversal zones. It maps active confirmed higher-timeframe upper and lower liquidity shelves and evaluates local sweeps to determine if they align with or conflict with the broader market structure.

Usage

The Usage section describes how the script can be used to interpret market context. The tool is designed to help traders separate significant liquidity reactions from local noise by categorizing interactions into specific states.

HTF Shelf Detection

The indicator identifies primary liquidity zones based on a user-defined higher timeframe (HTF). These "shelves" represent confirmed pivot structures where significant buy-side or sell-side liquidity is expected to reside.

Sweep and Reaction Analysis

When price breaches a local pivot on the current timeframe and closes back through it, the script marks a "sweep." It then evaluates the "Reaction Quality" based on wick rejection. A strong wick rejection near an HTF shelf suggests a higher probability of price reversal.

Stack Classification

The script classifies the market state into one of the following:

• HTF Buy Stack: A local sell-side sweep occurred near the HTF lower shelf with strong reaction quality.
• HTF Sell Stack: A local buy-side sweep occurred near the HTF upper shelf with strong reaction quality.
• Stack Conflict: A local sweep occurred in a direction that fights the HTF context (e.g., a buy-side sweep happening at the HTF lower shelf).
• Neutral: Price is between shelves or interacting with levels without qualifying reactions.

Details

The script utilizes a context-first methodology, prioritizing higher-timeframe structure over local candle patterns. It implements adaptive visual logic, such as the Max Shelf Width % Range, which prevents shelf zones from overlapping during periods of low volatility or on wide timeframes.

The Stack Score is a proprietary metric that combines proximity to HTF shelves and wick reaction intensity. This score is smoothed using an EMA (Stack Score Smoothing) to provide a stable context reading rather than reactive, single-bar noise.

Settings

Timeframe Stack Engine

• Higher Timeframe Shelf: The timeframe used to calculate the primary liquidity shelves.
• HTF Shelf Pivot Length: The number of bars used to confirm HTF pivot highs and lows.
• ATR Length: Period used for ATR-based calculations for shelf width and proximity.
• Shelf Zone Width ATR: The multiplier for ATR to determine the visual thickness of the HTF zones.
• Max Shelf Width % Range: Caps the shelf thickness to a percentage of the HTF range to prevent overlap.
• Near Shelf Distance ATR: The distance threshold defining how close a local sweep must be to an HTF shelf to be considered "aligned."

Liquidity Sweep Logic

• LTF Sweep Pivot Length: The pivot length used on the current chart to identify local liquidity levels.
• Reaction Quality Threshold: The minimum score required for a wick rejection to be validated as a "strong" reaction.

Visuals

• Show HTF Liquidity Shelves: Toggles the visibility of the HTF zones.
• Event Label Mode: "Premium" displays only strong HTF stack alignments; "Detailed" includes stack conflicts.
• Adaptive Label Layout: Shortens labels when HTF shelves are visually compressed to maintain clarity.
• Event Label Cooldown: Sets the minimum number of bars between labels to prevent chart clutter.

FAQ

How do I interpret a "Stack Conflict"? A Stack Conflict occurs when the local liquidity sweep does not match the higher-timeframe context. For example, if price sweeps local buy-side liquidity while it is at the HTF lower shelf, the script warns that the local move is "fighting" the broader structural floor.

What is the difference between a sweep marker and a stack label? A sweep marker (BS/SS) simply indicates that local liquidity was taken. A stack label (HTF Buy/Sell Stack) only appears when that sweep happens with high quality near a significant higher-timeframe level.

How can I access the Liquidity Timeframe Stack Map? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.