Atif's Liquidity Toolkit

💎 GENERAL OVERVIEW:
Atif’s Liquidity Toolkit is a price-action-based indicator used to identify Buyside & Sellside Liquidity Levels, Liquidity Sweeps, FVG Sweeps, and Buy/Sell signals, following specific rules from Atif Hussain.

This indicator was developed by Flux Charts in collaboration with Atif Hussain.

🔹Purpose of this indicator:
The purpose of Atif’s Liquidity Toolkit is to help traders understand where liquidity is forming, when it’s being taken, and how momentum shifts immediately afterward. It automates the entire process of identifying buyside & sellside liquidity, detecting liquidity sweeps, and confirming whether displacement followed through a Fair Value Gap. The goal is to give traders a consistent, rule-based framework to interpret market structure.

🎯ATIF’S LIQUIDITY TOOLKIT FEATURES:
Atif’s Liquidity Toolkit indicator includes 6 main features:

1. Fair Value Gaps
   
2. Multi-Timeframe Liquidity Levels
   
3. Liquidity Sweeps
   
4. Fair Value Gap Sweeps
   
5. Buy & Sell Signals with Take-Profit & Stop-Loss Levels
   
6. Alerts
   

1️⃣Fair Value Gaps
🔹What is a Fair Value Gap?:
A Fair Value Gap (FVG) is an area where the market’s perception of fair value suddenly changes. On your chart, it appears as a three-candle pattern: a large candle in the middle, with smaller candles on each side that don’t fully overlap it. A bullish FVG forms when a bullish candle is between two smaller bullish/bearish candles, where the first and third candles’ wicks don’t overlap each other at all. A bearish FVG forms when a bearish candle is between two smaller bullish/bearish candles, where the first and third candles’ wicks don’t overlap each other at all.

Bullish & Bearish FVGs:


In the settings, you can toggle on/off FVGs, choose the invalidation method, adjust the sensitivity, and toggle on FVG Midline & Labels.

🔹Invalidation Method:
The Invalidation Method setting allows traders to choose how an FVG is invalidated. You can choose between Close and Wick.

• Close: A candle must close below a bullish FVG or above a bearish FVG to invalidate it.
  

• Wick: A candle’s wick must go below a bullish FVG or above a bearish FVG to invalidate it.
  

🔹Sensitivity:
The sensitivity setting determines the minimum gap size required for an FVG detection. A higher sensitivity will filter out smaller gaps, while a lower sensitivity will detect more frequent, smaller gaps. Setting the sensitivity to 0 will display all gaps, regardless of their size.

On the left, the sensitivity is 5. On the right, the sensitivity is 0.


🔹Midline:
When enabled, a dashed line is drawn at the center of the FVG.


🔹Labels:
When enabled, a text label will be plotted with the gap, clearly identifying the zone as a FVG.



2️⃣ Multi-Timeframe Liquidity Levels
The indicator automatically detects and plots Buyside Liquidity (BSL) & Sellside Liquidity (SSL) Levels across up to three timeframes simultaneously.

🔹What is Buyside Liquidity?
Buyside Liquidity (BSL) represents price levels where many buy stop orders are sitting, usually from traders holding short positions. When price moves into these areas, those stop-loss orders get triggered and short sellers are forced to buy back their positions. These zones often form above key highs such as the previous day, week, or month. Understanding BSL is important because when price reaches these levels, the sudden wave of buy orders can create sharp reactions or reversals as liquidity is taken from the market.


🔹What is Sellside Liquidity?
Sellside Liquidity (SSL) represents price levels where many sell stop orders are waiting, usually from traders holding long positions. When price drops into these areas, those stop-loss orders are triggered and long traders are forced to sell their positions. These zones often form below key lows such as the previous day, week, or month. Understanding SSL is important because when price reaches these levels, the surge of sell orders can cause sharp reactions or reversals as liquidity is taken from the market.


Atif’s Liquidity Toolkit indicator automatically plots Buyside & Sellside Liquidity levels using the following levels:

• Previous Day High (PDH) & Previous Day Low (PDL)
  
• Previous Week High (PWH) & Previous Week Low (PWL)
  
• Previous Month High (PMH) & Previous Month Low (PML)
  
• Asia Session Highs/Lows
  
• London Session Highs/Lows
  
• New York Session Highs/Lows
  

The session start and end times are not customizable. The following times in EST are used for each session:

• Asia Session: 20:00-00:00
  
• London Session: 02:00-05:00
  
• New York Sessions:
  
• NY AM: 09:30-11:00
  
• NY Lunch: 12:00-13:00
  
• NY PM: 14:00-16:00
  

Users can also plot swing highs/lows using a lookback period and choosing the higher timeframe. Users can choose two custom higher timeframes and also enable swing highs/lows from the current chart’s timeframe.

There are three settings to customize for the current chart’s timeframe and higher timeframes:

• Current TF - when toggled on, swing highs/lows will be plotted from the chart’s timeframe using the pivot length input
  
• HTF 1 - when toggled on, swing highs/lows will be plotted from the user-inputted timeframe using the pivot length input
  
• HTF 2 - when toggled on, swing highs/lows will be plotted from the user-inputted timeframe using the pivot length input
  

The Pivot Length controls how far back the indicator checks to confirm whether a candle’s high or low is a true swing point (also called a “pivot”). When detecting a swing high, the indicator checks if that candle’s high is higher than the highs of the previous X candles and the next X candles. For a swing low, it checks if the candle’s low is lower than the lows of the previous X candles and the next X candles. The number X comes from your Pivot Length setting.

A lower Pivot Length input (for example, 3 or 4) means the indicator only looks at a few candles on each side, so it will detect more swing points, including smaller, less significant ones. A higher Pivot Length input (for example, 20 or 25) makes the indicator look at more candles on each side, so it only marks major turning points that stand out clearly on the chart.

In short:

• Low Pivot Length = more frequent, smaller levels (short-term focus)
  
• High Pivot Length = fewer, stronger levels (major swing focus)
  

The Pivot Length input for each setting (Current TF, HTF 1, and HTF 2) are displayed below in the red boxes:


Each liquidity level is plotted with a text label, making it easy to identify where a level came from. You can turn off the ‘Show Levels’ setting if you don’t want to see the levels on your chart.


Please note: Liquidity Levels play a key role in finding liquidity sweeps, FVG Sweeps, and Buy/Sell signals. Keeping the levels turned off will not stop the indicator from using the levels that are enabled from being used for the other features mentioned.

3️⃣Liquidity Sweeps:
The indicator automatically detects bullish and bearish liquidity sweeps using the liquidity levels you have enabled.

🔹What is a Liquidity Sweep?
A liquidity sweep is a market phenomenon where significant players, such as institutional traders, deliberately drive prices through key levels to trigger clusters of pending buy or sell orders. It’s how the market gathers the liquidity needed for larger participants to enter positions.

Traders often place stop-loss orders around obvious highs and lows, such as the previous day’s, week’s, or month’s levels. When price pushes through one of these areas, it triggers the stops placed there and generates a burst of volume. This often creates a short-term fake-out before the market reverses in the opposite direction.

By detecting these sweeps in real time, traders can identify potential reversal areas or “trap” areas where liquidity has been taken.


🔹Bullish Liquidity Sweep
These occur when price dips below a Sellside Liquidity (SSL) level, taking out the stop-loss orders placed by long traders below that low. The indicator marks a zone around the candle that swept the SSL to highlight where liquidity was removed from the market.

When this happens, it shows that the market just cleared out sell-side liquidity, meaning traders who were long had their stops hit. This is often followed by a reversal or strong reaction upward, because the market no longer has pending liquidity to fill below that level.


🔹Bearish Liquidity Sweep
These occur when price dips above a Buyside Liquidity (BSL) level, taking out the stop-loss orders placed by short seller traders above that high. The indicator marks a zone around the candle that swept the BSL to highlight where liquidity was removed from the market.

When this happens, it shows that the market just cleared out buyside liquidity, meaning short traders had their stops hit. This is often followed by a reversal or strong reaction downward, because the market no longer has pending liquidity to fill above that level.


Under the ‘Liquidity Sweeps’ section in the settings, you can toggle on/off Bullish Regular Sweeps and Bearish Regular Sweeps. You can also customize the line style and color of liquidity levels that have been swept.

🔹How to Use Liquidity Sweeps
Liquidity sweeps are not direct trade signals. They are best used as context when forming a directional bias. A sweep shows that the market has removed liquidity from one side, which can hint at where the next move may develop.

For example:

• When Buyside Liquidity (BSL) is swept, it often signals that buy stops have been triggered and the market may be preparing to move lower. Traders may then begin looking for short opportunities.
  

• When Sellside Liquidity (SSL) is swept, it often signals that sell stops have been triggered and the market may be preparing to move higher. Traders may then begin looking for long opportunities.
  

It’s common practice to use liquidity sweeps as the first step in building a trade idea. Many traders will wait for additional confirmation, such as a fair value gap forming after the sweep, before opening a position.

Under the ‘Liquidity Sweeps’ section in the settings, you can toggle on/off:
Bullish Regular Sweeps - when disabled, Bullish Regular Sweeps won’t appear on your chart.
Bearish Regular Sweeps - when disabled, Bearish Regular Sweeps won’t appear on your chart.

4️⃣Fair Value Gap Sweeps:
The indicator automatically detects bullish and bearish Fair Value Gap sweeps (FVG Sweep) using the liquidity levels you have enabled.

🔹What is a FVG Sweep?
A FVG Sweep is a specific type of liquidity sweep that not only clears liquidity above or below a key level, but also forms a Fair Value Gap (FVG) immediately afterward.

The liquidity sweep shows where stop orders were triggered, areas where the market aggressively took out one side’s liquidity. The formation of a Fair Value Gap right after the sweep confirms that displacement followed. This means that the sweep was not just a stop hunt, but a deliberate move backed by momentum.

In simple terms, a regular liquidity sweep only tells you that liquidity was taken. A FVG Sweep tells you that liquidity was taken and a strong directional move started immediately after, leaving an imbalance in price. That imbalance represents where aggressive buyers or sellers entered the market without enough opposite-side orders to keep price balanced. This combination adds a confirmation and intent behind regular liquidity sweeps.

🔹Bullish FVG Sweep
The indicator automatically detects bullish FVG Sweeps when price takes out a Sellside Liquidity (SSL) level and then forms a bullish FVG within the next few candles. This sequence shows that sellers were stopped out and buyers immediately entered the market with momentum.


🔹Bearish FVG Sweep
The indicator automatically detects bearish FVG Sweeps when price takes out a Buyside Liquidity (BSL) level and then forms a bearish FVG shortly after. This shows that short sellers’ stops were triggered, and new selling pressure entered the market right away.


🔹How to Use FVG Sweeps
Unlike regular liquidity sweeps, FVG Sweeps can be used as trade entries because they confirm both liquidity being cleared and immediate momentum. A regular sweep only shows that stop-losses were triggered, but an FVG Sweep proves that price not only cleared liquidity but also moved away with momentum, leaving behind an imbalance (Fair Value Gap). This shift often marks the start of a new short-term trend.

We’ll cover this in more detail in the Buy and Sell Signal section below, but in short, a bullish FVG Sweep can act as confirmation for a potential long entry after price takes out a low, while a bearish FVG Sweep can confirm a short entry after price takes out a high.

The strongest FVG Sweeps come from extremely sharp reversals. On the chart, they look like a “V” shape for bullish setups or an inverted “V” shape for bearish setups. This shape shows how quickly momentum shifted after liquidity was cleared. When price instantly reverses and leaves a Fair Value Gap behind, it’s a clear sign that buyers or sellers stepped in aggressively and absorbed all available liquidity on the opposite side.


In practice, traders often use FVG Sweeps as a trigger to align their bias. For example, after a bullish FVG Sweep, the focus shifts toward looking for long setups within the new imbalance or during a small retracement into the Fair Value Gap. After a bearish FVG Sweep, traders focus on short setups as price retraces back into the gap before continuing lower. The key takeaway is that FVG Sweeps show conviction.

Under the ‘Liquidity Sweeps’ section in the settings, you can toggle on/off:
Bullish FVG Sweeps - when disabled, Bullish FVG Sweeps won’t appear on your chart.
Bearish FVG Sweeps - when disabled, Bearish FVG Sweeps won’t appear on your chart.

Please Note: the settings you choose to use for Fair Value Gaps, under the ‘Fair Value Gaps’ section, will be used for FVG Sweeps. This is important because if you increase the sensitivity value for FVGs, not all FVG Sweeps will appear if the FVG’s size doesn’t meet the sensitivity threshold.

5️⃣Buy & Sell Signals:
This indicator also plots Buy & Sell signals. These signals follow logic based on Atif Hussain’s FVG trading model. The entry requirements for a Long & Short signal are outlined below.

🔹Buy Signal:
In order for a Buy Signal to generate, the following conditions must occur in order:

1. Bullish FVG Sweep
   
2. Price Retraces to the Bullish FVG
   

🔹Sell Signal:
In order for a Buy Signal to generate, the following conditions must occur in order:

1. Bearish FVG Sweep
   
2. Price Retraces to the FVG
   

🔹Require Retracement:
Under the ‘Signals’ section in the settings, you can toggle on/off the ‘Require Retracement’ setting. When disabled, a long/short signal will appear immediately after a Bullish or Bearish FVG Sweep, instead of waiting for price to retrace back to the gap.


Please Note: the liquidity levels you enable under the ‘Liquidity Levels’ section will be the levels used for signals. Thus, if you only have the Previous Day Highs/Lows enabled, then only those levels will be used to generate buy/sell signals. Also, long Signals will only appear if Bullish FVG Sweeps are enabled, and Short Signals will only appear if Bearish FVG Sweeps are enabled.

When a Buy Signal or Sell Signal is plotted, three suggested take-profit levels and one suggested stop-loss level are plotted. There are two different Take-Profit methods you can choose from within the indicator settings: Manual or Auto.

🔹Manual Take-Profit:
If you’re using manual take-profit levels, you can customize the Risk-to-Reward (RR) for Take-Profit 1, 2, and 3 by adjusting the “RR 1”, “RR 2”, and “RR 3” settings. Setting RR 1 to 1 means take-profit 1 is a 1:1 risk-to-reward ratio. The stop-loss will always be placed at the recent low for Buy Signals, and at the recent high for Sell Signals.


🔹Auto Take-Profit:
If you select to use Auto Take-Profit instead of Manual, then Take-Profit 1, 2, and 3 will be automatically determined based on nearby liquidity levels. The stop-loss will be placed at the recent low for Buy Signals, and at the recent high for Sell Signals. Take-Profit Levels 1, 2, and 3 will be placed at the three closest opposite liquidity levels. If the take-profit 2 and take-profit 3 levels are too far away, only one take-profit level will be displayed.



🔹Signal Settings:

Long Signals:

• When enabled, long signals are shown. When disabled, long signals will not appear.
  

Short Signals:

• When enabled, short signals are shown. When disabled, short signals will not appear.

Require Retracement:

• When enabled, price must retrace to a FVG after a FVG Sweep in order for a signal to be generated.

Take-Profit Levels:

• When enabled, take-profit levels (TP 1, TP 2, and TP 3) are shown with long/short signals. When disabled, take-profit levels and their price labels are not displayed.

Take-Profit Labels:

• When enabled, take-profit labels are displayed when price reaches one of the three take-profit levels. When disabled, labels won’t appear when price reaches take-profit levels.

Stop-Loss Levels:

• When enabled, stop-loss levels are shown for long/short signals. When disabled, the stop-loss level and its price label are not displayed.

Stop-Loss Labels:

• When enabled, stop-loss levels are shown for long/short signals. When disabled, a label won’t appear when price reaches the stop-loss level.

6️⃣Alerts:
The indicator supports alerts, so you never miss a key market move. You can choose to receive alerts for each of the following conditions:

• Bearish Liquidity Sweep
  
• Bullish Liquidity Sweep
  
• Bearish FVG Sweep
  
• Bullish FVG Sweep
  
• Long Signal
  
• Short Signal
  
• TP 1
  
• TP 2
  
• TP 3
  
• Stop-Loss
  

‼️Important Notes:
TradingView has limitations when running features on multiple timeframes, such as the liquidity levels, which can result in the following error:

🔹Computation Error:
The computation of using MTF features are very intensive on TradingView. This can sometimes cause calculation timeouts. When this occurs, simply force the recalculation by modifying one indicator’s settings or by removing the indicator and adding it to your chart again.

🚩 UNIQUENESS:
This indicator is unique because it identifies a specific type of liquidity event referred to as FVG Sweeps, where price takes liquidity and then immediately forms a Fair Value Gap in the opposite direction. These FVG Sweeps serve as the foundation of the model, and the script uses them as the required condition for generating Buy and Sell signals. Once an FVG Sweep is confirmed, the indicator automatically produces a fully defined trade idea with a stop-loss and up to three take-profit targets, following a consistent rule-based execution approach.