Liquidity Levels

Liquidity Levels builds support and resistance from volume peaks: whenever volume spikes over the lookback, the price where it happened is stored and drawn as a level. The premise is that heavy participation marks prices the market cared about — the same reasoning that makes pools of resting orders worth tracking — and a built-in histogram then shows how price behaved between neighboring levels, counting closes and the bullish share among them.

How to Trade the Liquidity Levels?

• Volume-peak levels: each detected peak flags its price as potential support or resistance; levels that history shows were tested before carry extra weight.
• Retest validation: on a return to a level, further volume analysis helps judge whether a bounce is genuinely being defended.
• Histogram bins: each bin counts the closing prices that fell between two levels and how many were bullish, revealing where price was accepted and which side drove it.
• Bin shape: a wide but short bin means price crossed those levels quickly with few closes — a hint of elevated volatility over a short stretch.

It sits naturally beside the rest of the levels toolkit.

Liquidity Levels Settings

• Length: the lookback used to detect volume peaks — the trigger for new levels.
• Number Of Levels: how many support/resistance levels stay displayed.
• Levels Color Mode: Relative colors levels by their position versus the current price, Random assigns varied colors, Fixed keeps a single color throughout.
• Levels Style: solid, dashed, or dotted lines.
• Show Histogram and Histogram Window: toggle the histogram and set the lookback it analyzes.
• Bins Colors: separate colors for the bullish and bearish portions of each bin.

Frequently Asked Questions

What does the histogram add to the levels?

It shows whether price actually lived between two levels or merely passed through. A bin full of closes signals acceptance, the bullish count reveals which side dominated while price was there, and the bin's width-to-height shape doubles as a volatility clue.

How is this different from Liquidity Levels/Voids (VP)?

This build marks high-volume peaks as levels. Liquidity Levels/Voids (VP) works the opposite side of the same map, profiling the span between swings to expose low-volume voids that price tends to revisit. Together they cover both extremes of the volume landscape.

Where can I get the Liquidity Levels indicator?

In the LuxAlgo Library, free of charge. From this page you can also run it inside Quant, LuxAlgo's AI, and experiment with its settings on your market.