Liquidity Sweep Breakout - LSB

The Liquidity Sweep Breakout - LSB indicator is a professional session-based breakout tool designed to capture institutional price moves during the Japanese banking settlement period. It identifies high-probability trade directions by isolating specific liquidity adjustments and confirmation windows within the Tokyo session.

Usage

The Usage section focuses on identifying the "Magic Candle" and subsequent breakout confirmations. The indicator is optimized for JPY pairs, particularly USDJPY on a 3-minute timeframe.

• Breakout Identification: The indicator marks a specific reference candle (the "Magic Candle") at 09:54 JST. A trade is considered valid only when price closes outside this range and the candle wick does not touch the range during specific checkpoint intervals.
• Session Windows: The system monitors checkpoints every 15 minutes between 10:30 JST and 12:30 JST. If no clean breakout occurs by the end of this window, it identifies a "No Trade Day" (NTD).
• Risk Management: Users can define their risk model using fixed dollar amounts, a percentage of equity, or a conservative blend. The indicator automatically calculates the required lot size based on these parameters and the distance to the session high/low (Stop-Loss).

Details

The LSB system is built on the concept of daily bank flow reconciliation. Japanese banks perform reconciliation and settlements in the early morning, which often dictates the trend for the remainder of the trading day.

The tool automates the detection of the Tokyo open range and the specific "Magic" liquidity candle. It includes logic to handle "fakeouts" by requiring clean candle closes away from the breakout range. For advanced users, the script is designed for automation via webhooks, allowing for seamless integration with external execution engines.

Settings

Risk Management

• Reward:Risk Ratio: Sets the target profit relative to the risk (Default: 1.5).
• Risk Model: Choose between "Fixed Dollar", "Percentage of Equity", or "Conservative".
• Risk Amount ($): The specific dollar amount to risk if using the Fixed Dollar model.
• Risk % of Equity: The percentage of account balance to risk per trade.
• Account Balance ($): Used to calculate lot sizes for equity-based risk models.

Alert Settings

• Enable Custom Alerts: Toggle to generate webhook-ready messages.
• EA License Key: Input field for third-party execution software keys.
• Alert Trade Comment: Custom text sent with trade execution for journaling.

Visual Settings

• Magic Lines Style: Adjusts the appearance of the breakout range lines.
• Show Shaded Areas: Toggles the visibility of the red (risk) and green (reward) zones.
• Show Tokyo Session Box: Displays the high/low range of the Tokyo session on the chart.

FAQ

How do I access Liquidity Sweep Breakout - LSB?

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

Which pairs are best for this indicator?

While it can function on various assets, it is specifically designed for USDJPY and other JPY crosses due to their sensitivity to the Japanese banking settlement period.

What happens if the price doesn't break out?

If the price remains within the identified range or fails to produce a clean breakout candle by the final checkpoint (8:30 AM PKT / 12:30 PM JST), the indicator will label the day as a "No Trade Day" to prevent overtrading in choppy conditions.