Liquidity and SFP

3 août 2020

This tool prints fractal high & lows (triangles) illustrating probably points of liquidity & Williams method.

If the liquidity points have been run, there will be a line print, when they have not been run there will still be a single triangle print without a line.

If the liquidity is run and then the candle closes above we print a checkmark to demo that it is likely that this was a stop run to generate liquidity for bigger market participants. This can help with entry identification if this is a method you deploy.

This indicator is available as part of membership at at decentrader.com

6 oct. 2021

Notes de version

Significant Upgrade to this indicator:

*Added Liquidity levels*

Recommended settings after significant user testing;

1. Lookback period should be c. 300 bars, but ultimately cover the most recent consolidation.
2. Use liquidity on 4 hour + => recommend 12 hour and 1 day
3. We kept only 10x and 3x liquidations - these seem to be most significant to market movers
4. We recommend using 10x most of the time... uncheck it from the options; 3x is more important on mass liquidation events

Logic approach;

- Price will gravitate to liquidity (lines)
- Once the block is taken, we expect resistance / support to materialise
- *consider the book* -> if there is a massive bid/ask where liquidations rest, likelihood of liquidation event diminishes.

20 oct. 2022

Notes de version

Updated to include 5 x.

It is strongly suggested to limit the number of lines visible & review each liquidity level individually due to pine script line print constraints, otherwise, data will be missing.

Please see the tutorial video if unclear.