OPEN-SOURCE SCRIPT

Liquidity Explosion

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# Liquidity Explosion Indicator

## What It Does
Spots big volume + price movements that often signal institutional buying or breakouts. Shows small colored dots below candles when liquidity "explodes" above normal levels.

## How It Works
Compares current volume×price to the past 20 days. When today's liquidity is 50%+ higher than before, you get a signal. Stronger signals = darker colored dots.

Pine Script®


## Key Features
  • Small colored dots below candles (not big distracting shapes)
  • Orange/Purple/Blue color options that stand out clearly
  • Strength levels 0-10: Light dots = weak signals, Dark dots = strong signals
  • Works on any timeframe (1m to 1D)
  • Built-in filters to avoid false signals on low-volume stocks


## How to Use

### Quick Setup
1. Add indicator to your chart
2. Choose your color: Orange (default), Purple, or Blue
3. That's it! Default settings work for most stocks

### Reading Signals
- **Colored dot below candle** = Liquidity explosion detected
- **Light dots** = Moderate strength (levels 0-3)
- **Dark dots** = Strong signals (levels 7-10)
- **No dot** = Normal volume/price activity

### Simple Settings Guide
- Blast Threshold: 50% = balanced, 30% = more signals, 70% = fewer but stronger
- Minimum Liquidity: 50 Cr = good for most stocks, increase for penny stocks
- Dot Size: "auto" recommended, or "tiny" for clean charts

## Why This Is Different
Unlike other volume indicators that show big distracting shapes or confusing oscillators, this keeps it simple:
- Small dots that don't clutter your chart
- Clear color coding: Orange stands out against any candle color
- Focuses on the most important thing: when big money is moving

## What Makes It Original
  • Combines volume AND price movement (not just volume alone)
  • Uses 0-10 intensity levels instead of simple on/off signals
  • Designed specifically for Indian markets (Crore values, NSE/BSE stocks)
  • Smart filtering prevents false signals on illiquid stocks
  • Professional appearance suitable for serious trading


## Best Practices
  • Works great with support/resistance levels - look for dots near key levels
  • Combine with price action - dots + breakouts = higher probability setups
  • On volatile stocks, increase the threshold to 60-70% to reduce noise
  • For penny stocks, increase minimum liquidity to 100+ Crores
  • Use different colors for different strategies (Orange for momentum, Blue for reversals)


## Important Notes

This is for educational purposes only. Not financial advice. Always do your own research and risk management. Past performance doesn't guarantee future results.

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