HTF Liquidity Levels

The HTF Liquidity Levels indicator tracks and visualizes untapped high and low levels from multiple higher timeframes to identify potential market magnets and directional bias.

Usage

The Usage section describes how the script can be used to identify key market areas where liquidity typically resides. Users can monitor previous daily, weekly, and monthly highs and lows to find "untapped" levels—price points that have not yet been revisited by the current price action.

• Directional Bias: Traders can use clusters of liquidity levels as price targets. The market often moves toward these "liquidity pools" to execute resting stop-loss orders.
• Liquidity Sweeps: When the price crosses a level, the indicator highlights it as a "purged" or "tapped" level. This often signals a liquidity grab (raid or hunt), which can precede a reversal or a continuation in the market trend.
• Timeframe Filtering: The tool allows users to overlay up to five different higher timeframes simultaneously, such as Daily (D), Weekly (W), and Monthly (M).

Details

The script operates on the concept that liquidity accumulates behind swing points and higher timeframe extremes in the form of resting orders.

• Untapped vs. Purged: Levels remain active and solid as long as they are "untapped." Once the price penetrates a level, it is visually transformed (e.g., into a dashed line) to indicate the liquidity has been purged.
• Automatic Cleanup: To maintain chart clarity, all purged levels are cleared at the end of a specified timeframe rotation (default is daily).
• Higher Timeframe Validation: The script includes logic to ensure that selected liquidity timeframes are always equal to or higher than the current chart timeframe to prevent data distortion.

Settings

Liquidity Levels

• Enabled (Checkbox): Toggles the visibility of specific liquidity timeframe slots.
• Timeframe: Sets the higher timeframe for high/low calculation (e.g., Monthly, Weekly, Daily, 4H, 1H).
• Upper/Lower Color: Customizes the color for high (resistance) and low (support) liquidity levels.
• Width: Adjusts the thickness of the horizontal lines for better visual hierarchy.

Purged Levels

• Color: Sets the color for levels that have been successfully breached.
• Style: Choose between Solid, Dashed, or Dotted lines for purged levels.
• Removal: Determines the timeframe rotation at which cleared/purged levels are removed from the chart.

FAQ

How do I interpret a "purged" level? A purged level indicates that the price has moved beyond a previous high or low, likely triggering stop-loss orders or breakout entries. This is often referred to as a liquidity sweep or grab.

Can I track intraday liquidity levels? Yes, by enabling the lower-tier slots and setting them to timeframes like 60 (1H) or 240 (4H), you can track intraday liquidity alongside daily and weekly levels.

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