Multi-Timeframe Liquidity Zones

The Multi-Timeframe Liquidity Zones indicator automatically identifies and visualizes significant support and resistance areas derived from pivot structures across multiple timeframes to highlight high-probability reaction zones.

Usage

The Usage section describes how the script can be used, particularly for identifying areas where price may experience rejection, support, or liquidity sweeps. By combining data from up to four different timeframes, the indicator allows traders to spot confluence zones where multiple timeframes suggest market interest at the same price level.

The indicator is primarily used for:

• Support and Resistance Trading: Identifying key floors and ceilings based on historical pivot highs and lows.
• Liquidity Sweep Analysis: Visualizing price levels where stop orders may be clustered, often leading to rapid price reversals.
• Breakout Confirmation: Monitoring how price reacts as it approaches a multi-timeframe zone to determine the strength of a potential breakout.
• Level Clustering: The script automatically merges nearby levels based on the "Zone Width" setting, helping to simplify the chart by only showing unique, relevant zones.

Details

The script utilizes the request.security function to fetch pivot high and pivot low data from user-defined timeframes. It employs a clustering algorithm that compares new pivot points against existing ones; if a new level falls within a specific percentage range of an existing level (defined by the Zone Width), it is filtered out to prevent chart clutter.

Resistance zones are dynamically calculated and displayed above the current price, while support zones are displayed below. Each zone is extended to the right of the chart and includes a label indicating its originating timeframe. The script also includes built-in alert logic that triggers when the price enters a detected liquidity zone.

Settings

Timeframe Settings

• Timeframe 1-4: Defines the four specific timeframes the script will scan for pivot structures.
• Show TF1-TF4 Levels: Toggles the visibility of levels originating from each respective timeframe.

Core Calculation

• Lookback Period: Determines the number of bars used to identify pivot highs and pivot lows (left and right strength).
• Zone Width (%): Sets the vertical thickness of the liquidity zones as a percentage of price and controls the sensitivity of the level clustering/merging logic.
• Maximum Levels Displayed: Limits the total number of boxes drawn on the chart to maintain performance and visual clarity.

Visuals & Alerts

• Label Distance: Adjusts the horizontal offset for the timeframe labels on the right side of the chart.
• Resistance Color: Sets the color for zones currently above the market price.
• Support Color: Sets the color for zones currently below the market price.

FAQ

How do I adjust the sensitivity of the zones? You can modify the "Lookback Period" to find larger, more significant pivots, or adjust the "Zone Width (%)" to change how close two levels must be before they are merged into a single zone.

Why are some timeframes not showing up on my chart? Ensure the "Show TF" toggle for that specific timeframe is enabled and that the "Maximum Levels Displayed" setting is high enough to include those levels.

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