ICT HTF MSS & Liquidity

The ICT HTF MSS & Liquidity indicator provides a comprehensive view of higher timeframe (HTF) liquidity zones and market structure shifts. It is designed to help traders identify where institutional liquidity resides and when a shift in market structure occurs on a higher timeframe, following the principles taught in ICT's 2022 mentorship.

Usage

The indicator can be used to track liquidity and structure across multiple timeframes, specifically optimized for the 15-minute chart as a "Higher Timeframe" reference while executing trades on lower timeframes (1m through 5m).

Traders can monitor three different tiers of pivot points:

• Short Term (ST): Local highs and lows based on a 3-candle formation.
• Intermediate Term (IT): Highs/lows flanked by two lower Short Term Highs/Lows.
• Long Term (LT): Highs/lows flanked by two lower Intermediate Term Highs/Lows.

The tool automatically identifies "Claimed" liquidity (when price reaches a level) and "Open" liquidity (pending levels). These are visually distinguished by different line styles and colors, allowing you to see which HTF levels are currently acting as magnets for price action.

Details

The script implements the ICT concept of nested pivot points. A Short Term High (STH) is defined when the high of a candle is higher than the candle to its left and right. An Intermediate Term High (ITH) is established when a STH is flanked by two lower STHs. This hierarchical logic extends to Long Term levels, providing a structured way to filter significant price levels from market noise.

The indicator also monitors for Market Structure Shifts (MSS) by identifying specific patterns involving displacement and Fair Value Gaps (FVG) once liquidity has been swept.

Settings

Liquidity

• Higher Timeframe: Sets the timeframe from which the liquidity and structure levels are derived (default is 15m).
• Use: Selects which level of pivots to display (Short Term, Intermediate Term, or Long Term).

Liquidity Style

• Open: Customizes the line style, thickness, and color for liquidity levels that have not yet been reached by price.
• Claimed: Customizes the visual appearance of levels that have been mitigated or swept.
• Extend: Determines how far the open liquidity lines extend beyond the current price action.
• Number of lines: Limits the maximum number of historical liquidity lines displayed on the chart to maintain performance.

FAQ

How do I interpret Open vs. Claimed liquidity? Open liquidity lines represent price levels that the market has not yet revisited, often acting as targets. Claimed liquidity lines show levels that have already been tapped, indicating a potential shift in momentum or a completed liquidity run.

What is the difference between Short, Intermediate, and Long Term settings? Short Term captures every 3-bar pivot, whereas Intermediate and Long Term filter for increasingly significant structural points by requiring nested pivot formations.

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