LIT_Globas_sys - Liquidity Inducement Theorem (SMC, IDM)

10월 8일

LIT_GLOBAL_SYS Trading Tool Documentation, is a comprehensive market analysis tool that includes all components needed for trading according to Liquidity Inducement Theorem (LIT). LIT differs from classical trading methods and is considered a highly effective and profitable strategy.

What can LIT_GLOBAL_SYS do?

--- Market Structure

The main feature of Liquidity Inducement Theorem is building the correct structure, specifically construction taking into account inducement (IDM). Thus, a new HH or LL can only form when the price has taken the first correct pullback - inducement (IDM), and after this, we understand the location of BoS (break of structure) and CHoCH (change of character).
LIT_GLOBAL_SYS automatically and perfectly displays the correct structure following all LIT rules. Looking at the indicator, a trader always understands which range the price is currently in and where it's trending at the moment. The indicator also shows dynamic (live) levels, providing a clear understanding of the market structure in real-time.
The indicator settings allow customization of each structural element according to trader preferences. For example, you can change the style, color, and shape of structural objects.

--- Correct Pullbacks and Inside Bars

In Liquidity Inducement Theorem, correct pullbacks are fundamental. The structure, order blocks, liquidity levels, order flow, and single candle order blocks (CSOB) are all built based on pullbacks.

What is a pullback?
- When the next candle updates the low of the previous candle, we can finish drawing an upward pullback
- We can start drawing a downward correct pullback when the next candle updates the low of the previous candle
- The downward movement will continue until the opposite occurs - updating the high of the previous candle

There are complexities in determining pullbacks - these are inside bars. In Liquidity Inducement Theorem, inside bars are completely ignored!
For example, in an upward movement, at some point, candles may stop updating the high and low of the previous candle and remain within the boundaries of the previous candle. Theoretically, there could be any number of such candles from 1 to infinity. In such cases, it's important to wait for the price to exit the mother candle (the candle after which other candles remained within its high and low range).
LIT_GLOBAL_SYS easily handles this and displays both pullbacks and inside bars correctly.

--- Order Blocks and Fair Value Gaps (FVG)

In Liquidity Inducement Theorem, order blocks are defined differently from classical order blocks:
1. The order block must take liquidity from the previous candle
2. The order block must have Fair Value Gaps (FVG) before it
3. Inside bars are completely ignored for both Order Blocks and FVG
4. If an OB fulfills the first condition (taking liquidity from the previous candle) but doesn't have FVG before it, this block is moved forward along the candles until there is an imbalance before it

There are two most important order blocks in LIT strategy:
1. Inducement order block (idm ob) - the first order block after Inducement
2. Extreme order block (Ext ob) - the first order block before CHoCH

LIT_GLOBAL_SYS perfectly displays correct order blocks and Fair Value Gaps following all rules. It offers full customization options:
- Specify the number of displayed OBs
- Disable all order blocks except idm ob and Ext ob
- Change block frame color and style
- Disable or modify text display in blocks

--- Single Candle Order Block (Scob)

Rules for building Scob:
1. The candle takes liquidity from the previous candle and closes within the body of the previous candle
2. The candle following the Scob candle must close its body below the previous candle
3. Scob forms in continuation of the trend movement
4. Scob completely ignores inside bars
LIT_GLOBAL_SYS accurately displays Scob as triangles and fully ignores inside bars both left and right. The menu allows complete customization of display and quantity of displayed Scobs.

--- Liquidity Lines, Order Flow, and Three-Minute Rule
Auxiliary functions include:
- Liquidity Lines -
Each pullback is marked with a line, showing where unclosed liquidity exists. Completed lines can be hidden to help predict price movement and enter trades correctly.
- Order Flow -
The indicator implements order flow by drawing a line when a pullback is broken (closed by body) in the opposite direction until the second touch. If price moves away without a second touch, the line remains, showing unclosed OF and potential price return zones.
- Three-Minute Rule -
Some LIT traders use the three-minute rule: price manipulations in the last and first three minutes of each 15-minute candle are additional entry factors, especially in the last quarter of an hourly candle. LIT_GLOBAL_SYS displays this rule only on the one-minute timeframe with symbols below for M15 and H1.

--- Trading Sessions, PDH/PDL, and EMA

The system includes:
- Trading sessions (Tokyo, Frankfurt, London, New York) with customizable time settings
- Previous Day High and Previous Day Low (pdh/pdl) levels
- Exponential Moving Average (EMA) with adjustable length
- Equilibrium display between current BoS and CHoCH levels

--- Alert System

LIT_GLOBAL_SYS includes all necessary alerts for Liquidity Inducement Theorem:
1. SCOB
2. EMA
3. BoS, ChoCh, Sweep
4. IDM
5. IDM OB and Ext OB

Users can simply check the desired alerts in the menu and activate them to receive notifications when price reaches specified zones.

11월 3일

릴리즈 노트

Update 1.20

Modernized the display of pullbacks:
1. You can choose to display as a zigzag line.
2. The labels have become smaller and you can choose between triangles and circles.
3. You can choose one type of display or both at once.

Added fully customizable lines for displaying New York Opening and Day Opening

Optimized the indicator

11월 4일

릴리즈 노트

Minor bug fixed

11월 12일

릴리즈 노트

Update 1.21
1. Optimized the indicator in general
2. Cosmetic improvements
3. SCOB labels can now be overlaid on Pullback labels, which reduces the number of labels on the screen, but leaves all the necessary information.

4. Fixed errors in sessions!
5. Repaired PDH/PDL fixed errors
6. Improved NY/DO
7. In the Liquidity/OF settings, you can now select only liquidity and hide the order flow

12월 1일

릴리즈 노트

Update 1.22.1

1. Added the ability to hide unnecessary number of IDM, BOS, ChoCh cycles
Just enter the number you want to see on the screen and extra lines and marks will be removed.
There is also a fine-tuning. Uncheck the Max cycles box and set the number of displayed lines and marks you need.


2. Magic Manipulation Minutes (MMM)
This is a guide in the world of precise timing.
Many traders use time zones for trading.
MMM - shows key moments of market activity and gives you an advantage in trading.

Six time zones:
Frankfurt Open (FO) - opening of the Frankfurt session
London Open (LO) - opening of the London session
Magic Minutes 1 & 2 (M1, M2) - periods of maximum activity
New York Open (NYO) - opening of the New York session
London Close (LC) - closing of the London session

Settings:
Support for all world time zones (UTC-10 to UTC+13)
Automatic adaptation for forex and crypto
Seasonal time accounting
Customizable colors and transparency of zones

Visualization:
Clear display of zones on the chart
Convenient time labels
Adjustable height of zones
Intuitive interface

Additional benefits:
Displayed on timeframes up to 45 minutes
Automatic update of zones every day
Customizable display history (up to 30 days)

Ideal for intraday trading


3. Added separate settings for the Asian session:
Background for Asia
Line 50% for Asia

12월 4일

릴리즈 노트

Update 1.22.2

1. Changed MMM settings:
MMM zones are automatically displayed for currency pairs and crypto.
But since different indices, metals and other assets open at different times and shift MMM zones,
I added the ability to select the desired asset and adjust the display of MMM zones manually.
It is possible to select up to 5 assets!

2. Improved alerts for session crossovers.
Added a visual display of the crossover, now you can see which bar crossed which session.
There is flexible customization of color, size and number of displayed days with crossovers.
If you do not use this function, you can disable it.