Liquidity Sweep Detector - PDH/PDL Levels

The Liquidity Sweep Detector - PDH/PDL Levels indicator identifies and visualizes moments when price action breaches the previous day's high or low to capture liquidity, providing essential context for reversal and stop-hunt trading strategies.

Usage

The Liquidity Sweep Detector - PDH/PDL Levels can be used by intraday traders to spot potential institutional stop runs or liquidity grabs. When price moves above the Previous Day High (PDH) or below the Previous Day Low (PDL), the indicator marks the event by changing the style of the level lines and updating the on-chart status table.

Examples of usage include:

• Short setups: Look for price to sweep the PDH and quickly reject, suggesting a potential move back into the daily range.
• Long setups: Look for price to sweep the PDL and reclaim the level, indicating a potential bullish reversal.
• Range analysis: Use the visual lines to understand the boundaries of the previous day's price action in real-time.

Details

This script calculates the Previous Day High and Low using intraday data rather than relying solely on the daily timeframe closure. This ensures that the levels are accurately tracked and updated as soon as a new session begins.

When a sweep occurs (price > PDH or price < PDL), the indicator logic triggers a "swept" state. To provide clear visual feedback, the solid lines representing these levels switch to a dashed style once they have been breached. The indicator also maintains a status table in the top-right corner, allowing traders to see at a glance if liquidity has already been taken for the current session.

Settings

• Previous Day High: Sets the color for the line representing the highest price of the previous day.
• Previous Day Low: Sets the color for the line representing the lowest price of the previous day.
• Show Sweep Status Table: Toggles the visibility of the on-chart information table that tracks whether the PDH or PDL has been swept.

FAQ

How do I use the Liquidity Sweep Detector - PDH/PDL Levels?

You can use it to identify "Stop Hunts" or "Liquidity Grabs" at key daily extremes. Traders often look for a sweep followed by a candle close back inside the previous day's range as a signal for a potential reversal.

What timeframes are best for this tool?

The tool is optimized for intraday timeframes such as the 15m, 1H, or 4H, where liquidity sweeps at daily levels are most visible and actionable.

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.