OPEN-SOURCE SCRIPT
Liquidation Cascade Detector - Basic 2.0
The Liquidation Cascade Detector identifies high-probability reversal entries by detecting the microstructure footprint of forced liquidations in futures, equities, crypto, and forex markets. When leveraged positions are stopped out in clusters, they create a recognizable sequence of price action, volume, and volatility signatures. This indicator scores the confluence of those signatures in real time — for both long and short setups simultaneously — and fires a signal only when the combined evidence exceeds a threshold.
This runs a subset of the analysis modules found in the full Liquidation Cascade system, fires up to five signals per regular trading session, and displays an aggregate confluence score. No external libraries, no dependencies — a single self-contained script.
Designed primarily for micro futures (MNQ, MGC, MES) on intraday timeframes (1m–15m), though the scoring system works on any liquid instrument with reliable volume data. Works on all TradingView plans.
## How It Works
The indicator evaluates multiple independent analysis modules, computes a directional confluence score for each side, and gates output through cooldown and session limits before firing.
**Volume Analysis**
Detects the participation surges that occur when clustered stop-outs feed into the order book simultaneously. The module classifies current volume conditions relative to recent history and scores the intensity of the spike. This contributes context to both directions, since liquidation events produce abnormal volume regardless of which side is being forced out.
**Keltner Channel Exhaustion**
Measures how far price has been pushed beyond dynamically calculated volatility bands. When price overshoots to statistical extremes — the kind of extension consistent with forced-exit overshoot — the module scores the degree of exhaustion. The scoring is continuous, not binary: marginal breaches score low while significant overextension receives the full module weight. Direction-specific scoring feeds into the corresponding signal.
**Price Action Structure**
Detects candle patterns characteristic of forced liquidation events — bars where price was shoved through a level by forced exits and then reclaimed by organic flow. Multiple pattern types are evaluated with different confidence levels, and the module scores them accordingly. The primary pattern carries more weight than secondary confirmations.
**Higher Timeframe Trend**
Reads trend direction from a configurable higher timeframe. Signals aligned with the prevailing trend receive a score bonus. Counter-trend signals are not blocked — they simply need stronger confluence from the other modules to reach the threshold. Counter-trend signals that do fire are visually dimmed so you can distinguish them at a glance.
**Scoring**
Each module contributes to a weighted confluence score computed independently for long and short directions on every bar. The scores combine to a 0–100 scale. A minimum-evidence gate ensures isolated readings from a single module cannot fire a signal on their own. If both directions exceed the threshold simultaneously, only the stronger side fires.
**Signal Gating**
A cooldown prevents signal clustering: after a signal fires, subsequent signals in the same direction are suppressed for a configurable number of bars. A per-session cap limits total signals during regular trading hours. When a signal is detected but suppressed by the cap, a small marker appears at the bottom of the chart so you know the system saw something. Signals only fire during NY cash session / RTH (9:30 AM – 4:00 PM ET).
## Display
Signal markers plot on the chart as directional triangles. Color intensity indicates trend alignment: bright signals are with-trend, dimmed signals are counter-trend. A small dot marker appears at the chart bottom when a qualifying signal was suppressed by the session cap.
Keltner channel bands are plotted as an overlay (toggle in settings). A score gauge in the bottom-right corner shows the leading direction, aggregate score, threshold, session signal count, and current session state. An info table (position configurable) provides a compact dashboard with scores for both directions, HTF trend, volume state, Keltner status, and signal budget.
Session awareness is built into the display: the RTH open price plots as a dashed horizontal line, and the opening range (9:30–10:00 ET) is highlighted with a subtle background shade.
## Settings
All parameters are adjustable:
- **Volume Lookback / Spike Multiplier** — Controls how volume conditions are classified relative to recent history.
- **Keltner Length / ATR Multiple / ATR Length** — Controls channel width and exhaustion sensitivity.
- **Liquidation Wick Ratio / Max Body Ratio** — Controls how strict the liquidation bar pattern detection is. Higher wick ratio and lower body ratio = fewer but higher-quality detections.
- **Trend Timeframe / Trend EMA Length** — Controls the higher timeframe trend reference.
- **Signal Threshold** — Minimum confluence score to fire. Lower = more signals with lower average quality.
- **Cooldown Bars** — Minimum spacing between signals.
- **Signals per Session** — Maximum signals during RTH.
- **Display toggles** — Individually toggle Keltner bands, session markers, info table, and score gauge.
## Usage Notes
This is a scoring and alerting tool, not a strategy. It identifies conditions consistent with forced liquidation events and scores setup quality. It does not determine position size, stop placement, or profit targets. Not financial advice.
Signals are most reliable on liquid futures during active trading hours. The opening range and power hour tend to produce the highest-quality signals. Lunch hours (12:00–1:30 ET) typically produce thinner conditions. The indicator suppresses overnight signals by only firing during NYSE regular trading hours (9:30-4:00 ET).
Uses one `request.security()` call for the higher timeframe trend. All data uses confirmed bars with no lookahead. Open source under the Mozilla Public License 2.0.
This runs a subset of the analysis modules found in the full Liquidation Cascade system, fires up to five signals per regular trading session, and displays an aggregate confluence score. No external libraries, no dependencies — a single self-contained script.
Designed primarily for micro futures (MNQ, MGC, MES) on intraday timeframes (1m–15m), though the scoring system works on any liquid instrument with reliable volume data. Works on all TradingView plans.
## How It Works
The indicator evaluates multiple independent analysis modules, computes a directional confluence score for each side, and gates output through cooldown and session limits before firing.
**Volume Analysis**
Detects the participation surges that occur when clustered stop-outs feed into the order book simultaneously. The module classifies current volume conditions relative to recent history and scores the intensity of the spike. This contributes context to both directions, since liquidation events produce abnormal volume regardless of which side is being forced out.
**Keltner Channel Exhaustion**
Measures how far price has been pushed beyond dynamically calculated volatility bands. When price overshoots to statistical extremes — the kind of extension consistent with forced-exit overshoot — the module scores the degree of exhaustion. The scoring is continuous, not binary: marginal breaches score low while significant overextension receives the full module weight. Direction-specific scoring feeds into the corresponding signal.
**Price Action Structure**
Detects candle patterns characteristic of forced liquidation events — bars where price was shoved through a level by forced exits and then reclaimed by organic flow. Multiple pattern types are evaluated with different confidence levels, and the module scores them accordingly. The primary pattern carries more weight than secondary confirmations.
**Higher Timeframe Trend**
Reads trend direction from a configurable higher timeframe. Signals aligned with the prevailing trend receive a score bonus. Counter-trend signals are not blocked — they simply need stronger confluence from the other modules to reach the threshold. Counter-trend signals that do fire are visually dimmed so you can distinguish them at a glance.
**Scoring**
Each module contributes to a weighted confluence score computed independently for long and short directions on every bar. The scores combine to a 0–100 scale. A minimum-evidence gate ensures isolated readings from a single module cannot fire a signal on their own. If both directions exceed the threshold simultaneously, only the stronger side fires.
**Signal Gating**
A cooldown prevents signal clustering: after a signal fires, subsequent signals in the same direction are suppressed for a configurable number of bars. A per-session cap limits total signals during regular trading hours. When a signal is detected but suppressed by the cap, a small marker appears at the bottom of the chart so you know the system saw something. Signals only fire during NY cash session / RTH (9:30 AM – 4:00 PM ET).
## Display
Signal markers plot on the chart as directional triangles. Color intensity indicates trend alignment: bright signals are with-trend, dimmed signals are counter-trend. A small dot marker appears at the chart bottom when a qualifying signal was suppressed by the session cap.
Keltner channel bands are plotted as an overlay (toggle in settings). A score gauge in the bottom-right corner shows the leading direction, aggregate score, threshold, session signal count, and current session state. An info table (position configurable) provides a compact dashboard with scores for both directions, HTF trend, volume state, Keltner status, and signal budget.
Session awareness is built into the display: the RTH open price plots as a dashed horizontal line, and the opening range (9:30–10:00 ET) is highlighted with a subtle background shade.
## Settings
All parameters are adjustable:
- **Volume Lookback / Spike Multiplier** — Controls how volume conditions are classified relative to recent history.
- **Keltner Length / ATR Multiple / ATR Length** — Controls channel width and exhaustion sensitivity.
- **Liquidation Wick Ratio / Max Body Ratio** — Controls how strict the liquidation bar pattern detection is. Higher wick ratio and lower body ratio = fewer but higher-quality detections.
- **Trend Timeframe / Trend EMA Length** — Controls the higher timeframe trend reference.
- **Signal Threshold** — Minimum confluence score to fire. Lower = more signals with lower average quality.
- **Cooldown Bars** — Minimum spacing between signals.
- **Signals per Session** — Maximum signals during RTH.
- **Display toggles** — Individually toggle Keltner bands, session markers, info table, and score gauge.
## Usage Notes
This is a scoring and alerting tool, not a strategy. It identifies conditions consistent with forced liquidation events and scores setup quality. It does not determine position size, stop placement, or profit targets. Not financial advice.
Signals are most reliable on liquid futures during active trading hours. The opening range and power hour tend to produce the highest-quality signals. Lunch hours (12:00–1:30 ET) typically produce thinner conditions. The indicator suppresses overnight signals by only firing during NYSE regular trading hours (9:30-4:00 ET).
Uses one `request.security()` call for the higher timeframe trend. All data uses confirmed bars with no lookahead. Open source under the Mozilla Public License 2.0.
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.
We build exceptional decision support tools for TradingView users. cascadeindicators.com
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.
We build exceptional decision support tools for TradingView users. cascadeindicators.com
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.