Simple Liquidity Sweep

The Simple Liquidity Sweep indicator identifies and tracks key price levels where liquidity resides, automatically detecting when these levels are breached by price action. This tool serves to highlight Buy Side Liquidity (BSL) and Sell Side Liquidity (SSL), providing traders with clear visual cues for potential market reversals or continuations following a liquidity grab.

Usage

The tool can be used to identify significant historical pivot points that act as magnets for price. When price exceeds a Pivot High, it is marked as a Buy Side Liquidity (BSL) sweep; conversely, when price drops below a Pivot Low, it is marked as a Sell Side Liquidity (SSL) sweep.

Traders often look for these "sweeps" as signs of institutional activity or stop-hunting. You can use the visual lines to:

• Identify potential areas for trade entries after a sweep occurs.
• Set price targets based on untouched liquidity levels.
• Determine market bias by observing which side of the market is being more frequently swept.

Details

The script utilizes pivot lookbacks to define significant highs and lows. Once a pivot is identified, a horizontal line is drawn and extended into the future. The script actively monitors price action: if price crosses a defined level, the script updates the line's visual state to "Swept." Users can choose to either hide these lines entirely upon a sweep or keep them visible with a faded opacity to maintain historical context. The implementation uses arrays to manage a specific number of lines per side, ensuring chart performance remains optimal.

Settings

1. General Settings

• Pivot Lookback: Determines the number of bars used to confirm a pivot high or low.
• Max Lines Per Side: Limits the number of active liquidity levels tracked on the chart to maintain performance.

2. Unswept Line Style

• Bull/Bear Liquidity Color: Sets the colors for BSL and SSL levels respectively.
• Line Style: Choose between Solid, Dashed, or Dotted for active levels.
• Line Width: Adjusts the thickness of the liquidity lines.

3. Swept Line Style

• Hide Swept Lines?: If enabled, lines will disappear immediately once price sweeps them.
• Opacity %: Controls how much the line fades after it has been swept.
• Line Style/Width: Defines the visual appearance of a level after it is no longer active.

4. Line Behavior

• Line Length (Bars): Determines how far forward the liquidity lines project from their origin point.

5. Text Labels

• Show Text Labels?: Toggles the visibility of the "BSL" and "SSL" text.
• Bull/Bear Text: Customizes the text displayed next to the levels.
• Size: Adjusts the font size of the labels.

FAQ

How do I use the Simple Liquidity Sweep to find entries?

Many traders look for a "sweep and reclaim" pattern, where price briefly takes out a liquidity level and then closes back inside the previous range, suggesting a potential reversal.

Can I set alerts for liquidity sweeps?

Yes, the script includes built-in alert conditions that trigger whenever a Buy Side or Sell Side liquidity level is swept.

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.