OPEN-SOURCE SCRIPT
Liquidity Walls [TradingIQ]
Hello Traders!
🔹Liquidity Walls [TradingIQ]
Liquidity Walls is an order-flow efficiency and absorption tool designed to highlight areas where aggressive buying or selling pressure fails to move price as expected.
Instead of only showing where price moved, this indicator asks a deeper question:
Did the market respond properly to the pressure behind the move?
When strong delta enters the market but price does not travel efficiently, that can suggest absorption, trapped aggression, or opposing liquidity.
Liquidity Walls is built to identify those moments and project potential liquidity clusters directly onto the chart.
🔹What the indicator shows
🔸Delta-Based Expected Close
The indicator estimates where price should have closed based on the relationship between delta and price movement.
It compares:
This creates a delta-implied close, shown directly on the chart.
The core idea is simple:
If aggressive buyers or sellers entered the market, price should usually respond.
When it does not, that mismatch can reveal hidden liquidity.
🔸Inefficient Candle Detection
Candles are colored when the script detects inefficient movement between delta and price.
This means:
The stronger the inefficiency, the more aggressively the candle is highlighted.
This helps you quickly identify bars where:
the effort was high, but the result was weak.
🔸Absorption Logic
Liquidity Walls uses a regression-style model to estimate the expected price move from delta.
It calculates:
When the difference becomes statistically extreme, the indicator treats that candle as a potential absorption event.
In simple terms:
Strong delta + weak price response = possible absorption.
🔸Liquidity Wall Zones
When absorption is detected, the indicator creates a projected liquidity zone.
If buy-side aggression is absorbed, a zone is drawn above price.
If sell-side aggression is absorbed, a zone is drawn below price.
These zones represent areas where price may have interacted with significant opposing liquidity.
This allows you to visually track areas where the market previously struggled to move through pressure.
🔸Active Zone Tracking
Liquidity zones extend forward until price breaks through them.
When price clears a zone, the indicator:
This keeps the chart focused on currently relevant liquidity zones instead of cluttering the screen with old levels.
🔸Granularity Selection
The indicator allows you to choose the lower timeframe source used for delta reconstruction.
Available granularity options include:
Lower granularity can provide more detailed flow analysis when data is available.
Important Note
Lower timeframe accuracy depends on the symbol, exchange, TradingView plan, and available historical data. Tick and second-based data may not be available on all markets.
🔹How the model works
The script looks at the relationship between:
From this, it estimates how far price should have moved based on the current delta.
Then it compares that expected move to the actual move.
If price dramatically underperforms relative to delta, the script marks the candle as inefficient and creates a potential liquidity wall.
🔹How to read it
🔸Highlighted candles
Highlighted candles suggest inefficient price movement.
This means aggressive flow entered the market, but price did not respond normally.
Possible interpretations:
🔸Liquidity walls above price
A zone above price can suggest that aggressive buying was absorbed.
This may indicate:
🔸Liquidity walls below price
A zone below price can suggest that aggressive selling was absorbed.
This may indicate:
🔹Example interpretations
🔹Why this indicator is useful
Liquidity Walls helps shift your analysis from:
“price moved here”
to:
“how did price respond to the pressure behind the move?”
This is useful because not all movement is equal.
Sometimes large aggressive volume creates a clean directional move.
Other times, large aggressive volume gets absorbed and price barely moves.
This indicator is designed to highlight those moments.
🔹Best use cases
🔹Inputs you can customize
🔸Granularity
Controls which lower timeframe data is used to estimate signed volume and delta behavior.
🔸Show Inefficient Candles
Turns candle coloring on or off.
When enabled, candles are colored based on the strength of the inefficiency signal.
🔸Liquidity Cluster Color
Controls the color used for liquidity walls, inefficient candles, and projected absorption zones.
🔹Important Notes
This script uses lower timeframe data to approximate aggressive buying and selling activity.
This means:
Liquidity Walls does not predict the future.
It identifies areas where recent order-flow pressure did not produce the expected price response.
That information can help traders better understand where liquidity may be absorbing movement.
🔹Closing Notes
Liquidity Walls is built to visualize the relationship between aggression, efficiency, and absorption.
It helps reveal when the market is moving cleanly — and when price is struggling against hidden liquidity.
As always, thank you TradingView!
🔹Liquidity Walls [TradingIQ]
Liquidity Walls is an order-flow efficiency and absorption tool designed to highlight areas where aggressive buying or selling pressure fails to move price as expected.
Instead of only showing where price moved, this indicator asks a deeper question:
Did the market respond properly to the pressure behind the move?
When strong delta enters the market but price does not travel efficiently, that can suggest absorption, trapped aggression, or opposing liquidity.
Liquidity Walls is built to identify those moments and project potential liquidity clusters directly onto the chart.
- lower timeframe delta analysis
- delta-implied price movement
- inefficient candle detection
- absorption-based liquidity zones
- adaptive expected close modeling
- active liquidity wall tracking
- automatic zone invalidation
🔹What the indicator shows
🔸Delta-Based Expected Close
The indicator estimates where price should have closed based on the relationship between delta and price movement.
It compares:
- actual price movement
- delta-driven expected movement
- how much price should have moved based on recent behavior
This creates a delta-implied close, shown directly on the chart.
The core idea is simple:
If aggressive buyers or sellers entered the market, price should usually respond.
When it does not, that mismatch can reveal hidden liquidity.
🔸Inefficient Candle Detection
Candles are colored when the script detects inefficient movement between delta and price.
This means:
- delta was strong, but price response was weak
- price failed to move as much as expected
- aggressive pressure may have been absorbed
- the market may be interacting with a liquidity wall
The stronger the inefficiency, the more aggressively the candle is highlighted.
This helps you quickly identify bars where:
the effort was high, but the result was weak.
🔸Absorption Logic
Liquidity Walls uses a regression-style model to estimate the expected price move from delta.
It calculates:
- lower timeframe signed volume
- net delta
- actual movement in ticks
- expected movement in ticks
- difference between expected and actual movement
When the difference becomes statistically extreme, the indicator treats that candle as a potential absorption event.
In simple terms:
Strong delta + weak price response = possible absorption.
🔸Liquidity Wall Zones
When absorption is detected, the indicator creates a projected liquidity zone.
If buy-side aggression is absorbed, a zone is drawn above price.
If sell-side aggression is absorbed, a zone is drawn below price.
These zones represent areas where price may have interacted with significant opposing liquidity.
- absorbed buying can suggest overhead liquidity
- absorbed selling can suggest downside liquidity
- zones remain active until price invalidates them
- invalidated zones fade automatically
This allows you to visually track areas where the market previously struggled to move through pressure.
🔸Active Zone Tracking
Liquidity zones extend forward until price breaks through them.
When price clears a zone, the indicator:
- stops extending the box
- fades the visual appearance
- removes it from the active liquidity wall list
This keeps the chart focused on currently relevant liquidity zones instead of cluttering the screen with old levels.
🔸Granularity Selection
The indicator allows you to choose the lower timeframe source used for delta reconstruction.
Available granularity options include:
- 1-Minute
- 1-Second
- 1-Tick
Lower granularity can provide more detailed flow analysis when data is available.
Important Note
Lower timeframe accuracy depends on the symbol, exchange, TradingView plan, and available historical data. Tick and second-based data may not be available on all markets.
🔹How the model works
The script looks at the relationship between:
- net delta
- price movement in ticks
- recent correlation between delta and price movement
- recent volatility of both delta and price movement
From this, it estimates how far price should have moved based on the current delta.
Then it compares that expected move to the actual move.
If price dramatically underperforms relative to delta, the script marks the candle as inefficient and creates a potential liquidity wall.
🔹How to read it
🔸Highlighted candles
Highlighted candles suggest inefficient price movement.
This means aggressive flow entered the market, but price did not respond normally.
Possible interpretations:
- absorption
- hidden liquidity
- exhaustion
- trapped aggression
- failed continuation
🔸Liquidity walls above price
A zone above price can suggest that aggressive buying was absorbed.
This may indicate:
- overhead liquidity
- resistance from passive sellers
- buyers pushing into supply
- possible failed breakout conditions
🔸Liquidity walls below price
A zone below price can suggest that aggressive selling was absorbed.
This may indicate:
- downside liquidity
- support from passive buyers
- sellers pushing into demand
- possible failed breakdown conditions
🔹Example interpretations
- strong buy delta + weak upward movement → buying may be absorbed
- strong sell delta + weak downward movement → selling may be absorbed
- price returns to a liquidity wall → possible reaction area
- price breaks through a wall → zone is invalidated
- multiple inefficient candles near the same level → potential liquidity cluster
🔹Why this indicator is useful
Liquidity Walls helps shift your analysis from:
“price moved here”
to:
“how did price respond to the pressure behind the move?”
This is useful because not all movement is equal.
Sometimes large aggressive volume creates a clean directional move.
Other times, large aggressive volume gets absorbed and price barely moves.
This indicator is designed to highlight those moments.
🔹Best use cases
- spotting absorption near highs and lows
- identifying weak breakouts
- tracking potential liquidity clusters
- finding areas where aggressive traders may be trapped
- confirming failed continuation attempts
- adding order-flow context to price action
- analyzing reaction zones around key levels
🔹Inputs you can customize
- Granularity
- Inefficient candle coloring
- Liquidity cluster color
🔸Granularity
Controls which lower timeframe data is used to estimate signed volume and delta behavior.
🔸Show Inefficient Candles
Turns candle coloring on or off.
When enabled, candles are colored based on the strength of the inefficiency signal.
🔸Liquidity Cluster Color
Controls the color used for liquidity walls, inefficient candles, and projected absorption zones.
🔹Important Notes
This script uses lower timeframe data to approximate aggressive buying and selling activity.
This means:
- accuracy depends on available lower timeframe data
- results may vary between markets
- tick and second data may not be available everywhere
- the model is interpretive, not predictive
- zones should be used as context, not standalone signals
Liquidity Walls does not predict the future.
It identifies areas where recent order-flow pressure did not produce the expected price response.
That information can help traders better understand where liquidity may be absorbing movement.
🔹Closing Notes
Liquidity Walls is built to visualize the relationship between aggression, efficiency, and absorption.
It helps reveal when the market is moving cleanly — and when price is struggling against hidden liquidity.
As always, thank you TradingView!
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Get Access To Our Tools: tradingiq.io
Subscribe For Daily Content: youtube.com/watch?v=Gx_cW29BUds
Subscribe For Daily Content: youtube.com/watch?v=Gx_cW29BUds
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Get Access To Our Tools: tradingiq.io
Subscribe For Daily Content: youtube.com/watch?v=Gx_cW29BUds
Subscribe For Daily Content: youtube.com/watch?v=Gx_cW29BUds
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.