Change in State of Delivery CISD ICT Liquidity 1

The Change in State of Delivery CISD ICT Liquidity 1 tool identifies key trend reversals by monitoring shifts in market delivery based on liquidity grabs and specific candle formations. It is designed for traders following ICT or Smart Money concepts to detect early signs of trend shifts similar to a Change of Character (ChoCh) or Market Structure Shift (MSS).

Usage

The Change in State of Delivery (CISD) serves as a confirmation signal after the price interacts with a liquidity zone.

• Bullish CISD: Occurs when the price hits a bearish liquidity zone (indicated by a Swing Failure Pattern or fake breakout), followed by a positive candle. The CISD level is established at the opening price of the candle following that first positive candle. A close above this level confirms a bullish shift.
• Bearish CISD: Occurs when the price hits a bullish liquidity zone, followed by a negative candle. The CISD level is set at the opening price of the next candle. A close below this level confirms a bearish shift.

Traders can use these levels to time entries with higher precision by ensuring the "state of delivery" has actually changed before committing to a trade.

Details

Unlike standard structure shifts that look for breaks of swing highs or lows, CISD focuses on the immediate change in candle delivery. The script specifically looks for the first opposing candle after a liquidity hunt (SFP). It then projects a level based on subsequent candle openings. This method aims to provide an earlier entry than traditional MSS, focusing on the internal transition of price action within a specific range.

Settings

CISD Logical Setting

• Bar Back Check: Determines the lookback period for candles to identify the initial CISD level.
• CISD Level Validity: Defines the duration (in bars) for which a detected CISD level remains valid.

SFP Logical Setting

• Swing Period: The period used for detecting swing highs and lows to identify potential liquidity zones.
• Max Swing Back Method: Choose between "All" or "Custom" to determine how many past swings are checked for liquidity interactions.
• Swing Swing Back: The specific number of historical swings to check if "Custom" is selected.

CISD Display Setting

• Show All/High/Low CISD: Toggles the visibility of the CISD levels and labels on the chart.
• Color Settings: Allows customization of the names and lines for bullish and bearish CISD markers.

SFP Display Setting

• Show All/High/Low SFP: Toggles the visibility of Swing Failure Pattern indicators.
• Color Settings: Allows customization of the colors for SFP labels and lines.

FAQ

What is the difference between CISD and MSS? While both identify trend changes, CISD focuses specifically on the immediate change in delivery following liquidity grabs using candle opening prices, whereas MSS typically requires the breaking of a major swing structure.

How do I interpret the visual labels? The script plots dotted lines to indicate active CISD levels and triangles to signal when a change in state of delivery has been confirmed by a price close.

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.