Liquidity Heatmap LTF
By LuxAlgoMay 31, 2022
Liquidity Heatmap LTF highlights, on your working chart, the candle bodies that carried the most volume on a lower timeframe of your choosing — a chart-built cousin of the resting-liquidity heatmap that estimates areas of concentrated interest from traded volume rather than order-book feeds. The heaviest zones print as column heatmaps, an immediate picture of where the real business was done.
How to Trade the Liquidity Heatmap LTF?
- Highlighted bodies (yellow by default): the lower-timeframe candle bodies with peak trading activity — candidate support and resistance where positioning concentrated.
- Interval lines: each highlighted body comes framed by two lines, keeping the zone easy to track as price returns to it.
- Range and direction lines: additional lines trace each candle's full range and color its direction, green for bullish and red for bearish; they can be hidden.
- Overlap logic: when a lower-volume body overlaps a higher-volume one, the lower-volume body takes the highlight, keeping the heatmap selective rather than exhaustive.
For the cleanest read, consider hiding regular candles or switching to a more discreet presentation of price so the heat zones stand out.
Liquidity Heatmap LTF Settings
- LTF Timeframe: the lower timeframe supplying opening/closing prices and volume — keep it below your chart's timeframe for the calculation to make sense.
- Style inputs let you change the highlight color and tune the other graphical elements.
Frequently Asked Questions
Why isn't every high-volume area highlighted?
The overlap rule filters the map: when candle bodies overlap, the lower-volume body is the one highlighted. Some busy areas therefore stay unmarked by design, focusing attention on the most relevant zones instead of flooding the chart.
How does this differ from a volume profile?
A profile aggregates volume by price across a whole range, while this heatmap works candle by candle, spotlighting the individual lower-timeframe bodies where volume peaked. For swing-anchored aggregation, Swing Volume Profiles is the natural companion.
How do I access the Liquidity Heatmap LTF?
Free through the LuxAlgo Library. You can load it into Quant, LuxAlgo's AI, straight from this page for testing.
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