Liquidity Zones

19 ธ.ค. 2025

Liquidity Zones

Liquidity Zones is a price-action–based indicator designed to identify high-probability support and resistance areas where liquidity has historically accumulated.
Instead of drawing single lines, the script builds dynamic price zones based on repeated pivot reactions validated by volume, helping traders focus on meaningful levels rather than noise.

How It Works

Pivot Detection

The indicator scans historical price data for pivot highs and pivot lows using a fixed pivot strength.

Each pivot represents a potential liquidity interaction point.

Volume Qualification

A pivot is only considered valid if the volume at the pivot bar exceeds:

Volume SMA × Sensitivity


This filters out weak or low-participation levels and keeps zones formed during strong market interest.

Zone Construction

Nearby pivots are grouped into a single zone if their price difference stays within an ATR-based threshold.

Each time price reacts within this threshold, the zone’s touch count increases.

Once the minimum number of touches is reached, a liquidity zone is drawn and extended to the right.

Adaptive Zone Expansion

As new qualifying pivots appear, zones automatically expand to reflect the true liquidity range instead of staying static.

Dynamic Zone Coloring

Zones update their color in real time based on price position:

Green (Support) → Price is above the zone

Red (Resistance) → Price is below the zone

Gray (In-Zone) → Price is trading inside the zone

This allows instant visual feedback on whether a level is acting as support, resistance, or an active liquidity area.

Settings Overview

Bars to Apply
Controls how much historical data is scanned for liquidity zones.

Volume Sensitivity
Higher values require stronger volume spikes to validate pivots, resulting in fewer but higher-quality zones.

Styling Options
Fully customizable colors and transparency for support, resistance, and in-zone states.

Best Use Cases

Identifying high-liquidity support and resistance zones

Planning entries, exits, and stop placement

Combining with trend-following or momentum indicators

Filtering out weak levels in sideways or choppy markets

20 ธ.ค. 2025

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Alerts

1. Liquidity Zone Breakout
This alert is designed for Confirmation. It triggers only when the price has successfully moved through a zone and closed on the other side.

Logic: Uses the close price. It requires the candle to finish.

Best Setting: Set the Trigger to "Once Per Bar Close".

Usage: Best for identifying trend shifts or successful breakouts where you want to avoid "fakeouts."

2. Liquidity Zone Touches
This alert is designed for Immediate Action. It triggers the very moment the price enters or taps the boundary of a zone.

Logic: Uses the high and low of the current candle. It does not wait for the candle to finish.

Best Setting: Set the Trigger to "Once Per Bar" or "Once Per Minute".

Usage: Best for traders who want to enter a trade exactly when the price hits a support or resistance level.

How to Activate Them

Click the Alerts icon in the right-hand sidebar (or press Alt + A).

In the Condition dropdown, select this indicator name.

In the second dropdown (directly below the indicator name), you will see your two custom options:

Liquidity Zone Breakout

Liquidity Zone Touches

21 ธ.ค. 2025

เอกสารเผยแพร่

Fixed some bugs in the alerts