Liquidity Hunter Pro

The Liquidity Hunter Pro indicator provides an automated institutional liquidity zone detection system designed to identify where large market participants operate. By detecting Buy-Side Liquidity (BSL) and Sell-Side Liquidity (SSL) sweeps, the tool visualizes smart money concepts and provides four specialized reversal signals for high-probability entry points.

Usage

The Usage section describes how the script can be used, focusing on the identification and exploitation of institutional liquidity pools.

Zone Identification

The indicator automatically highlights BSL (zones above price where short-seller stop losses rest) and SSL (zones below price where buyer stop losses rest). Users should look for zones with a high "Strength Score" (indicated by 3 to 5 stars) to identify significant structural levels.

Reversal Signals

When the price enters a zone and sweeps the liquidity, the script evaluates the volume and price action to trigger one of four signals:

• ABS (Absorption): Indicates that institutional players are aggressively absorbing orders.
• EXH (Exhaustion): Marks a dry sweep with minimal volume, suggesting the move has run out of momentum.
• DIV (Delta Divergence): Identifies a FOMO trap where high volume occurs but price fails to break through, trapping retail traders.
• REJ (Snapback Rejection): Triggers upon an immediate and strong price rejection candle after a sweep.

Trade Management

Once a signal appears, the tool can automatically plot Risk:Reward (R:R) lines. Users can adjust the target ratio in the settings to align with their specific strategy. The "Zone Health %" (Decay) feature monitors how much liquidity remains in a zone; once it hits 0%, the zone is considered exhausted.

Details

The script utilizes pivot high and low detection to map out potential liquidity pools. The height of each zone is adaptive, calculated using an ATR multiplier to ensure levels remain relevant across different market volatilities.

The internal logic tracks "Volume Delta" within four quadrants of every zone. This allows the script to analyze the distribution of buying and selling pressure during a sweep. The strength score is a weighted calculation involving the size of the original pivot and the volume traded within the zone. Furthermore, the script incorporates ICT concepts by labeling zones as "Premium" (sell areas above the 50% range) or "Discount" (buy areas below the 50% range).

Settings

Zone Settings

• Pivot Length: The lookback period used for detecting swing highs and lows.
• Max Zones per Side: Limits the number of BSL and SSL zones displayed to keep charts clean.
• ATR Zone Thickness: Adjusts the minimum height of the liquidity zones based on market volatility.

Zone Decay & Strength

• Show Zone Health %: Toggles the display of the remaining volume capacity within a zone.
• Volume Capacity (x Avg): Determines how much volume is required to exhaust a zone.
• Show Strength Stars: Enables the 1-5 star rating system for zone quality.

Reversal Signals

• Enable Reversal Detection: Toggles the ABS, EXH, DIV, and REJ labels.
• Show R:R Lines on Signal: Automatically draws Stop Loss and Take Profit levels when a signal fires.
• Risk:Reward Target: Sets the multiplier for the automated profit target.

Dashboard & Visuals

• Show Dashboard: Displays a real-time table showing signal performance and win rates.
• Show Premium/Discount Label: Toggles the ICT-based range labels.
• Show Sweep Counter: Displays how many times price has interacted with a specific zone.

FAQ

What do the star ratings on the zones represent? The stars represent the institutional quality of a zone. It is calculated based on the significance of the price pivot and the amount of volume concentrated at that level. Five stars indicate the highest quality zones.

How do the different reversal signals differ? Each signal represents a different market dynamic: ABS and REJ are based on aggressive institutional force, while EXH and DIV focus on the failure of a move or the trapping of retail participants.

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