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Liquidity Levels/Voids (VP)

By LuxAlgoAug 18, 2023

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Liquidity Levels/Voids (VP) measures the volume traded at every price between two swing points and sorts the result into the two features that matter: liquidity levels (the swing highs and lows created by an initial supply/demand imbalance) and liquidity voids, the stretches price rushed through on minimal participation. It is the logic of high- and low-volume nodes put to work as an imbalance detector.

How to Trade the Liquidity Levels/Voids (VP)?

  • Liquidity levels: swing extremes attract stop orders as more traders key off them; a revisit tends to resolve either as a breakout through the level or a reversion back toward the mean.
  • Liquidity voids: sharp moves on low volume leave a price imbalance, and markets frequently return to retest or fill those areas, a footprint of where significant orders once moved the market.
  • Filled vs unfilled: unfilled levels and voids stay marked in their own color until price returns; filled ones can be shown in a separate color or hidden.
  • Swing tooltips: optional swing high/low labels report price, price change, and the cumulative volume between the detected swings.

Liquidity Levels/Voids (VP) Settings

  • Liquidity Levels/Voids: color of unfilled levels and voids.
  • Detection Length: the lookback period used to find swing levels.
  • Threshold %: the cutoff that decides what qualifies as a liquidity level or void.
  • Sensitivity: how many levels are sliced between two swing points, setting each level's height for the threshold check.
  • Filled Liquidity Levels/Voids: visibility and color of filled areas.
  • Mode / # Bars: the lookback span for detection and display; # Bars applies when Mode is set to Present.
  • Swing Highs/Lows: label visibility, colors, and sizes.

Frequently Asked Questions

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