ICT SMC Liquidity Grabs and OBs

The ICT SMC Liquidity Grabs and OBs indicator provides a comprehensive trading assistant that automates the detection of liquidity sweeps, order blocks, and Fibonacci Optimal Trade Entry (OTE) zones. This tool aims to help traders identify high-probability institutional trading setups by combining price action structure with smart money concepts for more precise market entry and risk management.

Usage

The script can be used to identify key areas of interest where institutional participants are likely to interact with the market. Traders should monitor the chart for the following visual cues:

• Liquidity Grabs: Marked with "LG-H" or "LG-L" labels, these identify instances where price has swept a recent swing high or low but failed to sustain momentum, suggesting a potential reversal.
• Order Blocks: When a liquidity grab is accompanied by a strong bullish or bearish candle, the script draws a transparent box (green for bullish, red for bearish) to highlight the institutional order block.
• OTE Zones: The script automatically plots Fibonacci retracement levels (defaulting to 62% and 75%). A valid OTE entry signal is triggered when price enters this zone following a liquidity sweep and displays a strong candle close in the expected direction.
• Exit Targets: Users can manage trades using the structural take-profit levels (TP1 at the previous swing) and the extended TP2 based on a customizable risk-reward multiplier.

Details

This script integrates multiple ICT methodologies into a single execution logic. It begins by identifying swing pivots over a user-defined lookback period to establish liquidity levels. A "Liquidity Grab" is defined as a candle that exceeds these pivots but closes back within the previous range.

Following the grab, the script filters for Order Blocks by analyzing candle strength (relative size of the body to the wick). Finally, it uses the most recent swing high and low to calculate the Optimal Trade Entry range. A signal is only produced when these three conditions—liquidity sweep, structural zone, and OTE retracement—converge.

Settings

• Show Liquidity Grabs: Toggles the visibility of liquidity sweep labels on the chart.
• Show Order Blocks: Toggles the visualization of institutional order block boxes.
• Show Fibonacci OTE Levels: Enables or disables the plotting of the Fibonacci retracement lines.
• Fib Level 1 / 2: Allows users to customize the specific Fibonacci ratios used for the OTE zone (default is 0.62 and 0.75).
• Lookback Period: Sets the number of bars used to determine the highest highs and lowest lows for liquidity detection.
• TP2 R-Multiplier: Adjusts the distance of the second take-profit level based on the calculated risk of the OTE zone.

FAQ

How do I use the Liquidity Grab labels?

The labels "LG-H" and "LG-L" indicate that price has poked above or below a significant swing point and returned, which often precedes a change in trend direction.

What is a valid OTE signal?

A valid OTE signal occurs when the script identifies a liquidity grab, price retraces into the highlighted Fibonacci zone, and a confirming candle appears, marked by a triangle arrow and an "OTE BUY" or "OTE SELL" label.

How can I access ICT SMC Liquidity Grabs and OBs?

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