OPEN-SOURCE SCRIPT
Liquidity Structure & Order Flow [LuxAlgo]
The Liquidity Structure & Order Flow indicator is a comprehensive technical tool that visualizes market depth through volume distribution, order flow delta, and liquidity voids. It aims to provide traders with a high-fidelity view of where market participants are most active and where price is likely to find support, resistance, or rapid acceleration.
🔶 USAGE
The tool combines traditional volume profiling with modern visualization to identify market imbalances. By projecting liquidity depth directly onto the chart, users can observe the "weight" of the market at various price levels.
🔹 Identification and Strategy
🔹 Unusual Volume Bubbles
These bubbles identify extreme market events using a Z-Score calculation based on a 200-period volume baseline. A Smart Lane Anti-Overlap System ensures that multiple volume spikes occurring in quick succession do not obscure one another by stacking them in dynamic lanes. Larger bubbles with glow effects indicate higher statistical outliers, highlighting where "smart money" may be entering the market.
🔹 Volume Delta Backdrop
The **Volume Delta Panel** calculates the net difference between buying and selling pressure (Aggressive Delta) within each price bin of the Value Area. It uses an EMA-smoothed volume delta to filter noise, rendering higher intensities when one side of the market is significantly more aggressive than the other at a specific price level.
🔶 DETAILS
🔹 Widest Void Analysis
The script includes an automated logic to identify the "Widest Void." This is calculated by scanning the volume profile for the longest continuous sequence of price bins where volume falls below a specific threshold (15% of the Point of Control volume).
In market auction theory, these voids represent areas where price discovery was inefficient. Because there is little "historical friction" in these zones, price tends to traverse them quickly, acting as a vacuum between high-liquidity nodes.
🔹 Dynamic Volume Ribbons
At the leading edge of the indicator, two cumulative polylines project the volume distribution of the upper and lower halves of the lookback range. The Upper Ribbon (Red) represents the volume distribution above the price midpoint, while the Lower Ribbon (Green) represents the distribution below it.
🔶 SETTINGS
🔹 Volume Profile Settings
🔹 Volume Delta Backdrop
🔹 Unusual Volume Bubbles
🔹 Visualization & Dashboard
🔶 USAGE
The tool combines traditional volume profiling with modern visualization to identify market imbalances. By projecting liquidity depth directly onto the chart, users can observe the "weight" of the market at various price levels.
🔹 Identification and Strategy
- Identify Fair Value: Use the Value Area (VAH to VAL) to determine where the majority of trading has occurred. Price trading within this zone suggests a balanced market, while a breakout from this area often signals the start of a new trend.
- Spot Absorption: Look for high Volume Delta (bright green or red intensities) near the edges of the Value Area. If price fails to move further despite high delta, it suggests absorption by limit orders.
- Anticipate Volatility: Use the Widest Void zones to identify "liquidity gaps." Price often moves rapidly through these areas due to a lack of historical orders, making them ideal targets for take-profits or entry triggers.
- Confirm Reversals: Unusual Volume Bubbles appearing at key structural levels (like the POC or VA extremes) can signal climatic action or the entry of institutional players.
🔹 Unusual Volume Bubbles
These bubbles identify extreme market events using a Z-Score calculation based on a 200-period volume baseline. A Smart Lane Anti-Overlap System ensures that multiple volume spikes occurring in quick succession do not obscure one another by stacking them in dynamic lanes. Larger bubbles with glow effects indicate higher statistical outliers, highlighting where "smart money" may be entering the market.
🔹 Volume Delta Backdrop
The **Volume Delta Panel** calculates the net difference between buying and selling pressure (Aggressive Delta) within each price bin of the Value Area. It uses an EMA-smoothed volume delta to filter noise, rendering higher intensities when one side of the market is significantly more aggressive than the other at a specific price level.
🔶 DETAILS
🔹 Widest Void Analysis
The script includes an automated logic to identify the "Widest Void." This is calculated by scanning the volume profile for the longest continuous sequence of price bins where volume falls below a specific threshold (15% of the Point of Control volume).
In market auction theory, these voids represent areas where price discovery was inefficient. Because there is little "historical friction" in these zones, price tends to traverse them quickly, acting as a vacuum between high-liquidity nodes.
🔹 Dynamic Volume Ribbons
At the leading edge of the indicator, two cumulative polylines project the volume distribution of the upper and lower halves of the lookback range. The Upper Ribbon (Red) represents the volume distribution above the price midpoint, while the Lower Ribbon (Green) represents the distribution below it.
🔶 SETTINGS
🔹 Volume Profile Settings
- Lookback Period: The number of historical bars used to calculate the profile.
- Weight Recent Volume: When enabled, recent volume data has a higher impact on the profile shape.
- Value Area %: Defines the percentage of total volume used to calculate the VAH and VAL.
- Profile Smoothing: Adjusts the visual "noise" of the heatmap.
🔹 Volume Delta Backdrop
- Show Volume Delta Panel: Toggles the Delta distribution within the Value Area.
- Delta Intensity: Controls color saturation based on the magnitude of the delta.
- Delta Smoothing Length: The EMA length used to calculate the volume delta flow.
🔹 Unusual Volume Bubbles
- Sensitivity (Z-Score): The number of standard deviations required to trigger a bubble.
- Min/Max Bubble Size: Sets the visual constraints for the volume spikes.
🔹 Visualization & Dashboard
- Show Heatmap: Toggles the background liquidity heatmap.
- Highlight Widest Void: Toggles the detection and labeling of the primary liquidity gap.
- Curves X-Offset: Moves the polyline ribbons further into the future.
- Dashboard: Toggles the on-screen table containing metrics such as Mass Skew, Dist. to POC, and Aggregated Delta.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Build your own edge with AI: luxalgo.com
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Build your own edge with AI: luxalgo.com
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.