OPEN-SOURCE SCRIPT
Actualizado Liquidity Reaction Market Context Framework
Description
Liquidity Reaction – Market Context Framework is a structured visual tool designed to provide traders with clear market context based on session behavior, time-based positioning, and key reference levels.
This script does not aim to generate signals. Instead, it builds a contextual framework that helps traders understand how price evolves across different trading sessions and how liquidity transitions occur throughout the day.
Core Concept
Markets do not move randomly — they evolve through time-based cycles, where each session contributes to liquidity creation, expansion, and rebalancing.
This indicator organizes that behavior into a unified structure, allowing traders to:
Identify where price is within the daily cycle
Understand how sessions interact with each other
Detect where liquidity is likely being formed or consumed
Track how price reacts to prior session ranges and reference levels
Components
1. Sessions (Day, Asia, London, New York)
Each session is represented as a dynamic range (high–low) that evolves in real time.
Purpose:
Define structural ranges
Highlight consolidation and expansion phases
Provide context for intraday positioning
2. Session Close–Open Relationship (Gap)
The script tracks the relationship between the previous reference close and the next session open.
Purpose:
Identify imbalance zones
Highlight potential rebalancing areas
Provide a key reference for intraday reactions
3. Time Zones (Background Context)
Background shading represents key trading windows in New York time.
Purpose:
Provide temporal orientation
Align price action with institutional trading hours
Improve session-based analysis
4. Extended Hours
Marks low-liquidity periods outside primary sessions.
Purpose:
Contextualize reduced participation
Identify transitions between active and inactive markets
5. SMA 200
A long-term moving average included as a structural reference.
Purpose:
Provide directional bias context
Help visualize broader market positioning
Why This Script Is Different
Unlike traditional indicators that focus on signals or isolated calculations, this script is built as a contextual framework.
It integrates multiple time-based elements into a single, coherent structure that reflects how markets actually operate:
Through sessions
Through time
Through liquidity transitions
How to Use
Use sessions to understand where price is developing structure
Observe how price behaves when entering or leaving a session
Use the gap as a reference for imbalance and potential reaction
Align execution with time zones rather than arbitrary signals
Use SMA 200 as a higher-level directional filter
Notes
This indicator is designed to be used directly on the main chart
For proper visualization, place it above in the object tree
Works best on intraday timeframes where session behavior is more relevant
Each component can be enabled or disabled and limited by timeframe
This script is intended for traders who prioritize context over signals, and who want to understand the structure behind price movement, not just its outcome.
Liquidity Reaction – Market Context Framework is a structured visual tool designed to provide traders with clear market context based on session behavior, time-based positioning, and key reference levels.
This script does not aim to generate signals. Instead, it builds a contextual framework that helps traders understand how price evolves across different trading sessions and how liquidity transitions occur throughout the day.
Core Concept
Markets do not move randomly — they evolve through time-based cycles, where each session contributes to liquidity creation, expansion, and rebalancing.
This indicator organizes that behavior into a unified structure, allowing traders to:
Identify where price is within the daily cycle
Understand how sessions interact with each other
Detect where liquidity is likely being formed or consumed
Track how price reacts to prior session ranges and reference levels
Components
1. Sessions (Day, Asia, London, New York)
Each session is represented as a dynamic range (high–low) that evolves in real time.
Purpose:
Define structural ranges
Highlight consolidation and expansion phases
Provide context for intraday positioning
2. Session Close–Open Relationship (Gap)
The script tracks the relationship between the previous reference close and the next session open.
Purpose:
Identify imbalance zones
Highlight potential rebalancing areas
Provide a key reference for intraday reactions
3. Time Zones (Background Context)
Background shading represents key trading windows in New York time.
Purpose:
Provide temporal orientation
Align price action with institutional trading hours
Improve session-based analysis
4. Extended Hours
Marks low-liquidity periods outside primary sessions.
Purpose:
Contextualize reduced participation
Identify transitions between active and inactive markets
5. SMA 200
A long-term moving average included as a structural reference.
Purpose:
Provide directional bias context
Help visualize broader market positioning
Why This Script Is Different
Unlike traditional indicators that focus on signals or isolated calculations, this script is built as a contextual framework.
It integrates multiple time-based elements into a single, coherent structure that reflects how markets actually operate:
Through sessions
Through time
Through liquidity transitions
How to Use
Use sessions to understand where price is developing structure
Observe how price behaves when entering or leaving a session
Use the gap as a reference for imbalance and potential reaction
Align execution with time zones rather than arbitrary signals
Use SMA 200 as a higher-level directional filter
Notes
This indicator is designed to be used directly on the main chart
For proper visualization, place it above in the object tree
Works best on intraday timeframes where session behavior is more relevant
Each component can be enabled or disabled and limited by timeframe
This script is intended for traders who prioritize context over signals, and who want to understand the structure behind price movement, not just its outcome.
Notas de prensa
Liquidity Reaction – Market Context FrameworkLiquidity Reaction – Market Context Framework is a structured visual tool designed to give traders clear market context based on session behavior, time-based positioning, and key reference levels.
This script does not generate signals. It builds a contextual framework that helps traders understand how price evolves across trading sessions and how liquidity transitions occur throughout the day. It provides location and context — not decisions.
CORE CONCEPT
Markets do not move randomly. They evolve through time-based cycles, where each session contributes to liquidity creation, expansion, and rebalancing. This indicator organizes that behavior into a single, coherent structure, allowing traders to:
- Identify where price sits within the daily and weekly cycle
- Understand how sessions interact with each other
- Detect where liquidity is likely being formed or consumed
- Track how price reacts to prior session ranges and reference levels
COMPONENTS
1. Sessions (Day, Asia, London, New York)
Each session is drawn as a dynamic high–low range that evolves in real time, defining structural ranges and highlighting consolidation and expansion phases. All session logic is anchored to New York time for consistency across symbols.
2. Session Close–Open Relationship (Gap)
Tracks the relationship between the previous reference close and the following session open, marking imbalance zones and potential rebalancing areas. Most relevant on instruments with a true cash close/open (e.g. index products).
3. Time Zones (Background Context)
Background shading marks key trading windows in New York time, aligning price action with institutional hours.
4. Extended Hours
Shades low-liquidity periods outside the primary session, contextualizing reduced participation and visually separating operating days. Most relevant on instruments with a defined regular/extended session split.
5. Week Divider
Marks the close of each trading week with a vertical divider at a configurable time in New York (default Friday close), so weekly cycles are easy to read at a glance. Handles early-close Fridays automatically and projects the divider for the developing week. Works on intraday and daily timeframes.
6. Moving Averages (two, configurable)
Two independent moving averages included as structural, directional references. The first is enabled by default; the second is off by default and can be turned on for those who read context with two averages (for example a faster and a slower one, using their relationship and separation as directional bias). For each: type (SMA, EMA, WMA, RMA, HMA), length, source, color, width and offset are all adjustable.
TIMEFRAME CONTROL
Every component can be enabled or disabled independently, and each can be limited to the timeframes where it adds value, keeping the chart clean on higher timeframes.
WHY THIS SCRIPT IS DIFFERENT
Unlike indicators focused on signals or isolated calculations, this is a contextual framework. It integrates multiple time-based elements into one structure that reflects how markets actually operate: through sessions, through time, and through liquidity transitions. Because it maps context rather than dictating entries, it leaves the analysis in the trader's hands.
HOW TO USE
- Use sessions to see where price is building structure
- Observe how price behaves when entering or leaving a session
- Use the gap as a reference for imbalance and potential reaction
- Use the week divider to frame weekly cycles and locate moves within them
- Align execution with time zones rather than arbitrary signals
- Use the moving averages as a higher-level directional filter; with two enabled, read their relationship as context rather than as an entry signal
- Adapt the map to the instrument: on index products the Gap and Extended components reflect the real cash cycle; on 24h instruments such as forex, session structure alone (Sessions + Time Zones + Week Divider) is usually the cleaner reading
NOTES
- Designed to be used directly on the main chart
- For the Extended Hours shading to cover candles as intended, place the indicator above the chart's price series in the object tree
- Works best on intraday timeframes where session behavior is more relevant
- Each component can be enabled, disabled, and limited by timeframe
This indicator is intended for traders who prioritize context over signals — who want to understand the structure behind price movement, not just its outcome.
Notas de prensa
Liquidity Reaction – Market Context FrameworkLiquidity Reaction – Market Context Framework is a structured visual tool designed to give traders clear market context based on session behavior, time-based positioning, and key reference levels.
This script does not generate signals. It builds a contextual framework that helps traders understand how price evolves across trading sessions and how liquidity transitions occur throughout the day. It provides location and context — not decisions.
CORE CONCEPT
Markets do not move randomly. They evolve through time-based cycles, where each session contributes to liquidity creation, expansion, and rebalancing. This indicator organizes that behavior into a single, coherent structure, allowing traders to:
- Identify where price sits within the daily and weekly cycle
- Understand how sessions interact with each other
- Detect where liquidity is likely being formed or consumed
- Track how price reacts to prior session ranges and reference levels
COMPONENTS
1. Sessions (Day, Asia, London, New York)
Each session is drawn as a dynamic high–low range that evolves in real time, defining structural ranges and highlighting consolidation and expansion phases. All session logic is anchored to New York time for consistency across symbols.
2. Session Close–Open Relationship (Gap)
Tracks the relationship between the previous reference close and the following session open, marking imbalance zones and potential rebalancing areas. Most relevant on instruments with a true cash close/open (e.g. index products).
3. Time Zones (Background Context)
Background shading marks key trading windows in New York time, aligning price action with institutional hours.
4. Extended Hours
Shades low-liquidity periods outside the primary session, contextualizing reduced participation and visually separating operating days. Most relevant on instruments with a defined regular/extended session split.
5. Week Divider
Marks the close of each trading week with a vertical divider at a configurable time in New York (default Friday close), so weekly cycles are easy to read at a glance. Handles early-close Fridays automatically and projects the divider for the developing week. Works on intraday and daily timeframes.
6. Moving Averages (two, configurable)
Two independent moving averages included as structural, directional references. The first is enabled by default; the second is off by default and can be turned on for those who read context with two averages (for example a faster and a slower one, using their relationship and separation as directional bias). For each: type (SMA, EMA, WMA, RMA, HMA), length, source, color, width and offset are all adjustable.
TIMEFRAME CONTROL
Every component can be enabled or disabled independently, and each can be limited to the timeframes where it adds value, keeping the chart clean on higher timeframes.
WHY THIS SCRIPT IS DIFFERENT
Unlike indicators focused on signals or isolated calculations, this is a contextual framework. It integrates multiple time-based elements into one structure that reflects how markets actually operate: through sessions, through time, and through liquidity transitions. Because it maps context rather than dictating entries, it leaves the analysis in the trader's hands.
HOW TO USE
- Use sessions to see where price is building structure
- Observe how price behaves when entering or leaving a session
- Use the gap as a reference for imbalance and potential reaction
- Use the week divider to frame weekly cycles and locate moves within them
- Align execution with time zones rather than arbitrary signals
- Use the moving averages as a higher-level directional filter; with two enabled, read their relationship as context rather than as an entry signal
- Adapt the map to the instrument: on index products the Gap and Extended components reflect the real cash cycle; on 24h instruments such as forex, session structure alone (Sessions + Time Zones + Week Divider) is usually the cleaner reading
NOTES
- Designed to be used directly on the main chart
- For the Extended Hours shading to cover candles as intended, place the indicator above the chart's price series in the object tree
- Works best on intraday timeframes where session behavior is more relevant
- Each component can be enabled, disabled, and limited by timeframe
This indicator is intended for traders who prioritize context over signals — who want to understand the structure behind price movement, not just its outcome.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.