ICT Liquidity Sweep/Swing Fail Pattern V.1

The ICT Liquidity Sweep/Swing Fail Pattern V.1 indicator identifies and visualizes key institutional price action concepts including liquidity sweeps, swing failure patterns (SFP), and market structure shifts to help traders spot high-probability reversal zones.

Usage

The Usage section describes how the script can be used to identify institutional footprints in the market. The indicator focuses on "Smart Money" concepts by highlighting areas where retail stop losses are likely triggered before a trend reversal.

• Liquidity Sweeps (X Mark): When the "X" marker appears, it indicates price has moved beyond a previous swing high or low to trigger liquidity (stop hunts) before reversing.
• Swing Failure Patterns (SFP): This label appears when price attempts to break a key level but fails to close beyond it, signaling a lack of momentum and a likely rejection.
• Market Structure Shifts (MSS): The tool identifies breakout points where price successfully closes beyond a level, indicating a shift in trend direction.

Traders can use the dynamic supply (red) and demand (green) zones for trade entries. For a short position, users typically look for an SFP or X marker at a swing high and enter when price returns to the red supply zone. For long positions, users look for these signals at a swing low and enter within the green demand zone.

Details

The script utilizes pivot point logic to establish significant swing highs and lows. It dynamically updates these levels based on real-time price action.

• Session Integration: The indicator tracks specific trading sessions (Asian, London, NY AM/PM) and color-codes liquidity levels based on the session in which they were formed. This provides context on which session's liquidity is being targeted.
• Detection Logic: The SFP is triggered when price pierces a level but closes back within the previous range. The Liquidity Sweep (X) is identified when the wick exceeds the level but the candle body does not maintain that direction. The Market Structure Shift (MSS) is confirmed by a candle close beyond the identified pivot.

Settings

Main Logic

• Pivot Period: Determines the number of bars used to identify swing highs and lows.
• Max Active Lines: Limits the number of horizontal liquidity levels displayed on the chart.
• Timezone: Sets the reference time for session-based color coding.

Active Session Lines

• Active Line Width: Adjusts the thickness of the liquidity level lines.
• Session Inputs (Asian, London, NY AM/PM): Allows users to define specific time ranges for session tracking.
• Session Colors: Customizable colors for lines created during specific market hours.

Display & Size Settings

• Text Size: Controls the size of the SFP, X, and MSS labels.
• Text Distance (Ticks): Adjusts the vertical offset of labels from the price level.
• Show Price Labels: Toggles the visibility of price coordinates on active lines.

Style Groups (X, SFP, MSS)

• Show [Signal]: Toggles the visibility of specific pattern labels.
• Line Color: Customizes the color of the level once the specific signal is triggered.
• Line Style: Sets the line to Solid, Dashed, or Dotted upon signal confirmation.

FAQ

What timeframes are best for this indicator? The indicator is optimized for ICT-style intraday trading, making the 1M, 5M, 15M, and 1H timeframes the most effective for identifying precision entries.

What is the difference between an X mark and an SFP label? An X mark denotes a liquidity sweep where price "hunts" stops and immediately reverses, while an SFP specifically highlights a failed attempt to create a new market structure high or low.

How do I get access to the ICT Liquidity Sweep/Swing Fail Pattern V.1? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.