OPEN-SOURCE SCRIPT
The Buyside & Sellside Liquidity indicator aims to detect & highlight the first and arguably most important concept within the ICT trading methodology, Liquidity levels. ๐ถ SETTINGS ๐น Liquidity Levels ๐น Liquidity Zones ๐น Liquidity Voids ๐น Display Options ๐ถ USAGE Definitions of Liquidity refer to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly. In the context of Inner Circle Trader's teachings, liquidity mainly relates to stop losses or pending orders and liquidity level/pool, highlighting a concentration of buy or sell orders at specific price levels. Smart money traders, such as banks and other large institutions, often target these liquidity levels/pools to accumulate or distribute their positions. There are two types of liquidity; Buyside liquidity and Sellside liquidity. Buyside liquidity represents a level on the chart where short sellers will have their stops positioned, and Sellside liquidity represents a level on the chart where long-biased traders will place their stops. These areas often act as support or resistance levels and can provide trading opportunities. When the liquidity levels are breached at which many stop/limit orders are placed have been traded through, the script will create a zone aiming to provide additional insight to figure out the odds of the next price action. Reversal: Itโs common that the price may reverse course and head in the opposite direction, seeking liquidity at the opposite extreme. Continuation: When the zone is also broken it is a sign for continuation price action. It's worth noting that ICT concepts are specific to the methodology developed by Michael J. Huddleston and may not align with other trading approaches or strategies. ๐ถ DETAILS Liquidity voids are sudden changes in price when the price jumps from one level to another. Liquidity voids will appear as a single or a group of candles that are all positioned in the same direction. These candles typically have large real bodies and very short wicks, suggesting very little disagreement between buyers and sellers. The peculiar thing about liquidity voids is that they almost always fill up. ๐ถ ALERTS When an alert is configured, the user will have the ability to be notified in case; ๐ถ RELATED SCRIPTS
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Open-source script
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