All indicators

Rubber Band Liquidity Signals

By LuxAlgoJun 15, 2026

Rubber Band Liquidity Signals is an indicator on Vela, our next-generation charting platform, written in Pine Script®.

Static chart image
Liquidity SweepDisparity Index
Open in VelaAdd this indicator to a Vela chart in one click.Explain in VelaQuant, our coding agent, walks you through its signals and settings.

Rubber Band Liquidity Signals trades one specific sequence: a strong trend, a tight consolidation, a liquidity sweep through the range boundary, then continuation in the original direction. Each stage is detected automatically - ATR-scaled rules confirm the trend leg, a colored box marks the consolidation, and only a poke beyond the range that closes back inside qualifies as a sweep - so the final signal arrives pre-filtered against the false breakouts that trap early entries.

How to Trade the Rubber Band Liquidity Signals?

  • Range boxes: a box appears when consolidation follows a strong move - bullish color after an uptrend, bearish after a downtrend - outlining the range under test.
  • Sweep lines: when price pierces the range high or low but closes back inside, a line marks the grab that cleared out resting positions.
  • B label and yellow V: after a confirmed sweep, a breakout in the direction of the prior trend prints a "B" and a yellow V shape - the compression is over and the rubber band has snapped back with the trend.

Rubber Band Liquidity Signals Settings

  • Trend Lookback: bars used to measure the strength of the preceding trend leg.
  • Trend Move ATR Multiplier: minimum move size, relative to ATR, for the trend to qualify.
  • Consolidation Length: bars required for a consolidation range to form.
  • Range Max ATR Multiplier: caps how wide a valid range may be.
  • Max Range Duration: expires stale boxes so old ranges stop producing signals.
  • Bullish Color / Bearish Color: styling for ranges and sweep markers.

Frequently Asked Questions

Free to use

Run it on Vela. Go further with a paid plan.

  • Up to 500 Custom Alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • More Quant usage to customize it, plus extra usage when you need it
  • Futures data alongside crypto, stocks, forex and commodities
See plans

Also works on

TradingView
Original indicatorBuilt in-house by LuxAlgo

Related indicators

All 27 Liquidity Sweep indicators

Run it on Vela. Make it yours with Quant.

Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.

Open in VelaSee plans