Trendline Liquidity
By LuxAlgoMay 3, 2026
Trendline Liquidity treats a popular trendline as a destination, not a barrier. Candidate lines from swing pairs must slope with their trend, stay unviolated and collect debounced touches; at the minimum touch count a line qualifies, and the build shades the diagonal band of trendline liquidity resting beyond it — stops from traders leaning on the line plus pending breakout orders. A counter tags the touches and the band deepens with each one.
How to Trade the Trendline Liquidity?
- Pool tapped: the first pierce beyond touch tolerance flags the pool being filled — sell-side under a rising support line, buy-side above a falling resistance line.
- Sweep: the poke stalls and price reclaims the line inside the reclaim window, or immediately on a displacement candle; a close beyond the latest opposite swing upgrades it to Sweep ✓.
- Break: acceptance closes beyond the line, or a reclaim window ending beyond it, resolve the event as genuine follow-through; the line re-styles dotted, its pool consumed.
Trendline Liquidity Settings
- Swing Length (default 10): pivot length anchoring candidate lines; larger values isolate widely watched lines.
- Minimum Touches (default 3): respected touches before a line is treated as carrying liquidity.
- Touch Tolerance (ATR) (default 0.25): distance counting as a touch, and the pierce threshold.
- ATR Normalization Length (default 200): ATR length behind tolerance, band depth and displacement.
- Show Liquidity Band (on) with Band Depth (ATR) (default 0.5): the estimated order band beyond the line.
- Reclaim Window (Bars) (default 8), Acceptance Closes (default 3), Displacement Multiplier (ATR) (default 1.0) and Structure Shift Window (Bars) (default 20): the sweep-versus-break machinery.
- Style: Line Style (Solid), Show Touch Counter (on), Show Sweep / Break Labels (on), Resolved Lines Kept (default 8).
Frequently Asked Questions
How does this pair with the Draw on Liquidity indicator?
Draw on Liquidity names the pool price is gravitating toward; this build supplies the diagonal pools themselves. A many-touch line with a deep band is the destination a draw thesis points at; the resolution records what happened on arrival.
Why must the lines slope?
Because horizontal pools belong to equal highs and lows, the definition is diagonal: the builder demands a distinctly rising support or falling resistance line, rejecting near-flat candidates.
What makes the band's fill darker?
Touch count: every debounced touch means another cohort traded the line and parked orders beyond it, so the fill steps darker as a proxy for the pool's depth.
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