Liquidity Sweep Detector v1

The Liquidity Sweep Detector v1 indicator automatically identifies and tracks institutional liquidity zones by mapping specific two-candle reversal patterns as dynamic support and resistance levels. It provides real-time visualization of where "Smart Money" may be seeking stop losses, helping traders identify potential reversals or stop hunts.

Usage

The Usage section describes how the script can be used to identify key market turning points. The indicator monitors price action for specific candle sequences and projects levels horizontally until they are intersected by price.

• Identifying Buy Liquidity: When a bearish candle is immediately followed by a bullish candle, the script marks the low of the bearish candle as a "BUY" liquidity zone. This represents a level where sell-side liquidity (stop losses for long positions) is likely concentrated.
• Identifying Sell Liquidity: When a bullish candle is followed by a bearish candle, the script marks the high of the bullish candle as a "SELL" liquidity zone. This indicates where buy-side liquidity (stop losses for short positions) resides.
• Tracking Sweeps: The lines extend indefinitely until the price (wick or body) breaks the level. Once a break occurs, the line changes transparency to indicate the liquidity has been "swept," signaling a potential entry point for Smart Money Concept (SMC) traders.

Details

The script utilizes arrays to manage active liquidity lines and labels, ensuring that only relevant, unbroken levels are prominently displayed. The detection logic relies on price action symmetry:

• Buy Zone Construction: Defined by open[1] > close[1] (Bearish) and open[0] < close[0] (Bullish). The level is anchored to low[1].
• Sell Zone Construction: Defined by open[1] < close[1] (Bullish) and open[0] > close[0] (Bearish). The level is anchored to high[1].

The indicator dynamically updates the midpoint of the labels as time progresses, ensuring the "BUY" and "SELL" tags remain centered on the active lines for visual clarity.

Settings

Pencarian

• Jumlah Candle Scan ke Belakang: Determines the historical lookback period for scanning liquidity patterns.

Garis BUY

• Warna Garis BUY: Sets the color for the buy-side liquidity levels.
• Ketebalan Garis BUY: Adjusts the visual weight of the buy-side lines.
• Jenis Garis BUY: Changes the line style (Solid, Dashed, or Dotted).
• Ukuran Teks BUY: Sets the font size for the "BUY" label.

Garis SELL

• Warna Garis SELL: Sets the color for the sell-side liquidity levels.
• Ketebalan Garis SELL: Adjusts the visual weight of the sell-side lines.
• Jenis Garis SELL: Changes the line style (Solid, Dashed, or Dotted).
• Ukuran Teks SELL: Sets the font size for the "SELL" label.

FAQ

How do I use the alerts provided by this indicator? The script includes built-in alert conditions that trigger whenever a "BUY" or "SELL" liquidity level is swept by the current price. You can enable these via the Charting Platform's alert menu.

What happens to a line once the price touches it? When the low of a candle drops below a Buy level or the high of a candle rises above a Sell level, the line is considered "swept." The indicator then increases the transparency of that line and stops extending it.

How can I access the Liquidity Sweep Detector v1? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.