Stop Placement vs Liquidity Pools

Stop Placement vs Liquidity Pools turns stop placement vs liquidity pools into a mapped, auditable overlay. Confirmed swings, prior day and week extremes and nearby round numbers become ATR-scaled stop pockets (buyside above highs, sellside below lows), and equal extremes merge into thicker pools. Dashed guides mark the closest safer stop beyond the nearest pockets; a dashboard sums up pools, guides, buffer and audit verdict.

How to Trade the Stop Placement vs Liquidity Pools?

• Sweep label: price pierces a pool but closes back inside: a stop-driven run, often a short-term extreme.
• Break label: the close holds beyond the level: acceptance rather than a stop run.
• Safer stop guides: park short stops beyond the buyside guide, long stops beyond the sellside guide, resizing for the wider distance.
• Stop audit: set a price and a stop inside any mapped pocket is relocated beyond the pool plus buffer.

Approach alerts fire within the configured ATR distance of the nearest pocket; pools register on closed bars only and never repaint.

Stop Placement vs Liquidity Pools Settings

• Swing Length (default 10): bars each side to confirm a swing.
• Pocket Depth (default 0.25): pocket span beyond each level, in ATR.
• Equal Level Tolerance (default 0.25): ATR distance within which swings merge as equal.
• Active Pools per Side (default 5) and ATR Length (default 14).
• Prior Day High/Low and Prior Week High/Low (default enabled); Round Numbers (default enabled) with Step (default 0 = automatic grid).
• Stop Buffer (default 0.5) and Safer Stop Guides (default enabled).
• Audit Intended Stop (default disabled) with a Price field.
• Sweep / Break Labels (default enabled) and Approach Distance (default 1.0).
• Style options cover colors, dashboard corner and text size.

Frequently Asked Questions

What separates a Sweep from a Break?

How does this compare with ATR-based Stop Distance?

Are the pools actual resting orders?