Swing Levels and Liquidity - By Leviathan

The Swing Points and Liquidity indicator identifies pivot highs and lows to visualize market structure, liquidity zones, and potential swing failure patterns. It provides a comprehensive view of price exhaustion and interest areas by plotting levels with optional volume and Open Interest (OI) data.

Usage

The Usage section describes how the script can be used to identify key price levels. The indicator identifies pivot points based on a user-defined neighborhood of bars.

• Market Structure Identification: Use the "Show Lines" or "Show Boxes" features to visualize horizontal support and resistance levels formed by swing points.
• Liquidity Analysis: The "Extend Until Fill" option allows users to see which historical levels have not yet been mitigated by price, marking them as potential liquidity pools.
• Significance Filtering: By enabling "Show Volume" or "Show OI Δ", traders can compare the relative strength of different swing points. High volume at a pivot point often suggests stronger institutional interest.
• Refining Sensitivity: Adjust the "Bars Left-Right" settings to filter for major or minor structure. Increasing these values results in fewer, more significant swing points, while decreasing them provides a more granular view of price action.

Details

The script identifies a pivot high when the current bar's high is greater than the highs of $N$ bars to its left and $M$ bars to its right. A pivot low is identified similarly when a bar's low is lower than its surrounding neighbors.

Beyond price action, the script integrates Open Interest delta from major exchanges (Binance, BitMEX, Kraken) for cryptocurrency symbols. This allows the indicator to filter or label swing points based on whether they were accompanied by an increase or decrease in market positioning.

Settings

• Bars Right-Left: Defines the number of bars required to the left and right of a candle to confirm it as a swing point.
• Show Boxes: Toggles the display of rectangular zones around swing points to visualize areas of interest.
• Show Lines: Toggles horizontal lines at the exact price of the swing high or low.
• Show Labels: Displays a circle at the pivot point for quick visual identification.
• Show Volume: Displays the volume traded on the candle that formed the swing point.
• Show OI Δ: Displays the change in Open Interest (aggregated from selected exchanges) for the swing candle.
• Extend Until Fill: If enabled, levels remain on the chart until the price crosses them. If disabled, they expire after a set duration.
• Conditions Group: Provides filters for Volume, Open Interest thresholds, and OI direction (positive or negative) to only show significant levels.
• Appearance Group: Controls the colors, line styles, box widths, and text sizes for the various visual elements.

FAQ

How do I adjust the indicator for different timeframes? You should adjust the "Bars Right-Left" parameters and "Box Width" settings. Higher timeframes may require smaller relative box widths to avoid cluttering the chart.

What does it mean when a level is "Filled"? A level is filled when price action eventually returns to and touches or crosses the horizontal line/box established by a previous swing point, indicating mitigation or a sweep of that level.

How can I access the Swing Points and Liquidity indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.