Liquidity Founder

2024년 7월 13일

The Liquidity Swings indicator aids traders in detecting liquidity swings within the market, providing essential insights for making well-informed trading decisions. Key features include:

How this Indicator work - this indicator search pivot point that is used to determine the levels at which price may face support or resistance. The Pivot Points indicator consists of a pivot point (PP) level and several support (S) and resistance (R) levels. if input number of bar selected 3 than it will look back 3 candle and wait for next 3 candle to make pivot high and low after it identify pivot it draw a line and extend until it no longer intersects with the high or low prices

What is different in my indicator compared to a normal pivot point and what Makes This Indicator Original :

1) Swing High and Low Logic:It avoids marking consecutive pivot highs until a new pivot low is formed, reducing market noise and highlighting significant trend reversals.


2)Volume Integration: By incorporating volume data, the indicator ensures that pivot points are validated with sufficient market activity, enhancing their reliability as support and resistance levels.

3) Multi-Time Frame Analysis:The ability to input and analyze multiple time frames allows the indicator to draw strong support and resistance levels that are relevant across different trading periods, making it versatile for various trading strategies.


🟠 Liquidity Swings indicator

✅Visualization of Liquidity Zones:Accumulation Areas: Identifying regions where liquidity is gathering.liquidity Sweeps: Pinpointing areas where liquidity is being cleared.

✅Pivot and Volume Analysis:Price Pivots: Monitoring significant pivots in price.
Volume Correlation: Linking price pivots with volume to highlight zones of potential support and resistance.

✅Market Dynamics Understanding:Enables traders to visualize and understand market dynamics more effectively.Assists in pinpointing potential support and resistance levels based on liquidity swings.

⭐Example -EurUsd 1 minutes chart developed Potential Support and Resistance Zone

https://www.tradingview.com/x/GawJfNju


⭐⭐⭐Key Features:

1) Adjustable Time Frame: Allows traders to analyze different periods by modifying the time frame setting.

2) Swing Look back Period: Sets the period for identifying potential price swings, enhancing flexibility in analysis.

🟠 Understanding Strong Support :These are identified by dense clusters of green lines, indicating high concentrations of buy orders that have not yet been executed. These areas suggest strong buying interest which can potentially halt further price declines.

⭐ Example -below chart image BtcUsd 5 minutes 2 line are still not touched by price

https://www.tradingview.com/x/MZHICY5L
⭐⭐⭐Reasons for Strong Support:

✅Untouched Liquidity Lines: These green lines represent pending buy orders, indicating robust buying interest at these levels.

✅Accumulation of Orders: Many buy orders are aggregated in these zones, capable of preventing further price drops when approached.

✅ Historical Performance: These areas have previously prevented price declines, establishing them as reliable support zones.

✅ Market Confidence: Close clustering of green lines signifies widespread trader belief in favorable buying conditions, reinforcing support strength.

🟠 Understanding Strong Resistance :Highlighted by dense clusters of red lines, denoting substantial sell orders that did not executed. These zones signify significant selling interest which can impede further price increases.

⭐ Example -below chart image Btcusd 3 minutes 3 line did touched by price previously .price touched that area and retraced because of unfilled liquidity

https://www.tradingview.com/x/eNRuy2v0

⭐⭐⭐ Reasons for Strong Support:

✅ Untouched Liquidity Lines: These green lines represent pending buy orders, indicating robust buying interest at these levels.

✅ Accumulation of Orders: Many buy orders are aggregated in these zones, capable of preventing further price drops when approached.

✅ Historical Performance: These areas have previously prevented price declines, establishing them as reliable support zones.

✅ Market Confidence: Close clustering of green lines signifies widespread trader belief in favorable buying conditions, reinforcing support strength.


⭐⭐⭐ Usage of the Liquidity Founder Indicator ⭐⭐⭐

👍 Identifying Liquidity Zones: Pinpoints areas with dense clusters of pending buy (green) or sell (red) orders, providing initial entry points where significant buying or selling interest is concentrated.

👍 Avoiding Market Traps: Helps traders steer clear of market fluctuations or false breakouts by focusing on stable liquidity zones.

How to Use this indicator for Maximum benefit -

1) When the price approaches a cluster of resistance levels, traders should look for a candle showing rejection (e.g., a bearish reversal candle) to enter a short trade.

2)When the price approaches a cluster of support levels, traders should look for a candle showing rejection (e.g., a bullish reversal candle) to enter a long trade.

3) The identified liquidity levels offer a clear understanding of significant support and resistance areas, helping traders make more informed trading decisions.

4) Fake breakouts above resistance or below support clusters. If the price breaks above resistance and then falls back below, it can be a signal to enter a short trade vice versa if price break support cluster and back again above support cluster it can be a long trade

2024년 7월 13일

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