Liquidity Levels Pro Tool - thewallranka

Liquidity Levels Pro Tool is a market-structure and liquidity-mapping indicator designed to help discretionary futures and index traders identify statistically relevant price levels where reactions, continuations, or liquidity sweeps are more likely to occur.

This script is a decision-support tool, not a signal generator. It does not issue buy/sell alerts or predict future price movement. Instead, it organizes and scores liquidity information so traders can make their own contextual decisions.

What this indicator does

The script continuously detects and maintains liquidity zones derived from price pivots, then evaluates those zones using multiple structural and contextual factors:

Repeated price interaction (touches)
Freshness (time since last interaction)
Confluence with key reference levels
Reaction behavior after contact
Session relevance (RTH vs overnight)
Market regime (trend vs mean reversion)
Time-of-day effects (open, midday, power hour)

Only the most relevant zones—based on a dynamic scoring system—are displayed to reduce chart clutter and focus attention on levels that have historically mattered.

Core components
1. Liquidity Zones

Zones are built from pivot highs and lows and expanded into areas using a configurable tick-based padding. Nearby zones are merged to avoid redundancy.
Each zone is continuously evaluated and assigned a score (0–100) reflecting its relative importance.

2. Zone Scoring (No Lookahead)

Zone scores are based on:
Number of confirmed interactions
Recency of the last touch
Confluence with prior day/week levels, VWAP, and Opening Range
Reaction quality after touches (speed and follow-through)
Session alignment (zones that “work” in the current session are favored)
Penalties after liquidity sweeps
Zones are not forward-looking and do not rely on future data.

3. Context Engine

The script classifies the current environment using VWAP slope and distance:
Trend (up or down)
Mean reversion
Mixed/transition
Time-of-day context (Open, Midday, Power Hour) is also tracked internally and influences zone scoring.
This context is displayed in the HUD to support situational awareness, not automated decisions.

4. Liquidity Sweeps

Optional sweep detection highlights situations where price trades beyond a zone and closes back inside, indicating potential stop runs or failed breakouts.
Sweeps are rate-limited and applied conservatively to avoid visual noise.

5. Trade Planning Levels (Optional)

When enabled, the script highlights the nearest high-quality liquidity level above and below price based on score thresholds.
These are intended as reference targets, not trade entries or exits.

HUD (Heads-Up Display)

The on-chart HUD summarizes:
Key reference levels (prior day/week, Opening Range)
Nearest strong liquidity above/below price
Market regime and time-of-day context
Distance to levels (ticks or points)
The HUD is fully optional, positionable, and includes resizable modes (Small / Medium / Large) to fit different chart layouts.

How to use this tool

This indicator is best used as part of a discretionary trading process, for example:
Identifying areas where price is more likely to react or pause
Framing trades around higher-quality structure instead of arbitrary levels
Filtering setups based on session and regime context
Managing expectations near known liquidity rather than chasing price
It is intentionally designed not to provide trade signals.

Limitations and important notes

This script does not predict outcomes or guarantee reactions
High-scoring zones can still fail
Liquidity behavior is context-dependent and probabilistic
No performance claims or backtested results are provided
The indicator should not be used in isolation
Past behavior does not imply future results.

Chart and usage notes

The script is intended for standard time-based charts
Recommended for liquid futures and index products
Use a clean chart for clarity when publishing or sharing
No external indicators are required

Final note

Liquidity Levels Pro (Tool) — v6 is designed to organize complex market structure into a clear, readable framework, allowing traders to focus on execution and risk management rather than raw level detection.

This script reflects an analytical approach to intraday liquidity and structure, not an automated trading system.