Liquidity Gravity Map

The Liquidity Gravity Map indicator provides a quantitative framework for identifying dynamic support and resistance zones based on liquidity accumulation and decay. Rather than relying on static price levels, the tool treats liquidity as a gravitational force that shifts according to price action, volume, and time-based relevance to highlight high-probability areas where price is likely to be attracted or rejected.

Usage

The Usage section describes how the script can be used to navigate complex market structures. Traders can use the indicator to identify reversal points, filter out weak structural levels, and understand the "pull" of institutional liquidity pools.

• Reversal Identification: Look for high-scoring zones (graded 0-100) that align with price exhaustion. Warm-colored gradients indicate zones with higher structural integrity and "gravitational pull."
• Contextual Filtering: Use the integrated VWAP Acceptance Context to validate zones. Zones created during bullish VWAP reclaims or bearish rejections receive higher scores, indicating stronger institutional participation.
• Liquidity Absorption: Monitor how price interacts with a zone. The script tracks penetration depth and volume to determine if a level is being defended (absorbed) or broken.
• Dynamic Clean-up: The tool automatically prunes stale or mitigated zones based on a time-decay function and a memory cap, ensuring only the most relevant levels remain on the chart.

Details

The Liquidity Gravity Map utilizes several proprietary components to score and maintain liquidity zones:

• Composite Scoring Engine: Zones are graded on a 0-100 scale using seven distinct metrics: Structure, Revisits, Wicks, VWAP Context, Mitigation, Decay, and Proximity.
• Time-Decay Function: Untouched liquidity zones lose their score over time via an exponential decay function, prioritizing fresh price action over historical data.
• VWAP Acceptance Engine: Calculates volume-weighted average price across configurable sessions (RTH, Day, Week, Month). This provides a macro context, scoring zones higher if they align with standard deviation bands or VWAP reclaims.
• Zone Detection Algorithm: Identifies swing highs/lows and stop-hunt wicks while factoring in equal high/low clustering and ATR-based volatility to establish initial zone width.

Settings

Core

• Lookback Period: Sets the candle window for identifying stop-hunts and performing aging cleanup.
• Zone Sensitivity: Controls the width of generated zones and the tolerance for merging equal highs or lows.
• Max Zones (Memory Cap): The maximum number of zones stored in the script's internal memory.
• Max Visible Zones: Limits the number of top-scoring zones rendered on the chart to prevent clutter.
• Score Decay Rate: The exponential rate at which a zone’s score decreases while it remains untouched.

VWAP Acceptance

• VWAP Session Type: Defines the anchor period for VWAP calculations (RTH, Day, Week, Month).
• RTH Session: Specifies the time range for Regular Trading Hours when the RTH session type is active.
• Show VWAP Bands: Toggles the visibility of the Session VWAP and its standard deviation bands.

Visuals

• Color Theme: Selection between Classic, Neon, or Monochrome palettes for zone gradients.
• Show Zone Labels: Toggles text labels displaying the zone's bias (BULL/BEAR), gravity score (LG), and revisit count (R).

FAQ

How is the Liquidity Gravity (LG) score calculated? The score is a composite value derived from structural significance, volume absorption, wick ratios, proximity to current price, and alignment with VWAP standard deviations.

Why do some zones disappear or change color? Zones disappear when they are fully mitigated or when their score falls below the top "N" visible zones. Color changes reflect the real-time "health" and strength of the zone based on recent price interactions.

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