OPEN-SOURCE SCRIPT
Liquidity Trap & Reversal bot [Point algo]
The Psychology of the Liquidity Trap
Retail traders are taught to place their Stop Losses just above previous swing highs or just below previous swing lows. Market makers and institutional algorithms often drive price into these "pockets of liquidity" to fill their own large orders. This script identifies the specific 111% – 113% "Sweet Spot" where these traps frequently occur.
The 111% Liquidity Trap & Reversal is a structural tool that maps out these institutional "Stop Run" zones and provides execution signals when price fails to sustain a breakout and returns to its previous range.
How the Logic Works
1. Swing Identification: The script finds significant Pivot Highs and Lows based on a user-defined lookback period.
2. The Trap Zone: It calculates the Fibonacci-derived extensions specifically favored by institutional models:
3. The Reversal Signal: A "REVERSAL" signal is triggered only if price penetrates the 111% zone and then crosses back inside the original pivot level. This confirms the "Sweep" and a shift in momentum.
4. Breakout/Breakdown (BO/BD): To provide a complete picture of market structure, the script also marks successful breakouts where price closes decisively beyond the pivot without reversing.
Key Features
How to Trade with It
[#] The Reversal: Look for a "REVERSAL" arrow. This is a high-probability setup indicating that the "Breakout Traders" have been trapped and the market is likely to rotate to the opposite end of the range.
[#] The Breakout (BO/BD): If price crosses the pivot and a "BO" or "BD" label appears without hitting the trap zone first, it signifies structural strength and trend continuation.
[#] Filtering: Use the "Pivot Lookback" setting to switch between Micro-Scalping (Lower numbers) and Macro-Trend analysis (Higher numbers).
Rules :
1. Transparency: All math—from the pivot calculations to the extension percentages—is fully visible in the source code.
2. No "Holy Grail" Claims: This is a technical analysis tool designed to identify historical price patterns. It does not predict future movements with certainty.
Retail traders are taught to place their Stop Losses just above previous swing highs or just below previous swing lows. Market makers and institutional algorithms often drive price into these "pockets of liquidity" to fill their own large orders. This script identifies the specific 111% – 113% "Sweet Spot" where these traps frequently occur.
The 111% Liquidity Trap & Reversal is a structural tool that maps out these institutional "Stop Run" zones and provides execution signals when price fails to sustain a breakout and returns to its previous range.
How the Logic Works
1. Swing Identification: The script finds significant Pivot Highs and Lows based on a user-defined lookback period.
2. The Trap Zone: It calculates the Fibonacci-derived extensions specifically favored by institutional models:
- 111% – 113%: The primary "Trap Zone" where price often wicks into before reversing.
- 127.2%: The secondary "Deep Sweep" level.
3. The Reversal Signal: A "REVERSAL" signal is triggered only if price penetrates the 111% zone and then crosses back inside the original pivot level. This confirms the "Sweep" and a shift in momentum.
4. Breakout/Breakdown (BO/BD): To provide a complete picture of market structure, the script also marks successful breakouts where price closes decisively beyond the pivot without reversing.
Key Features
- Visual Trap Zones: Red (Short) and Lime (Long) zones plotted as step-lines for a clean, non-repainting view of where the traps are set.
- Dual-Signal Logic: Differentiates between a failed breakout (Reversal) and a successful trend continuation (BO/BD).
- Institutional Extensions: Uses the 1.11 and 1.13 ratios, which are mathematically grounded in price-action theory but often overlooked by standard Fibonacci tools.
How to Trade with It
[#] The Reversal: Look for a "REVERSAL" arrow. This is a high-probability setup indicating that the "Breakout Traders" have been trapped and the market is likely to rotate to the opposite end of the range.
[#] The Breakout (BO/BD): If price crosses the pivot and a "BO" or "BD" label appears without hitting the trap zone first, it signifies structural strength and trend continuation.
[#] Filtering: Use the "Pivot Lookback" setting to switch between Micro-Scalping (Lower numbers) and Macro-Trend analysis (Higher numbers).
Rules :
1. Transparency: All math—from the pivot calculations to the extension percentages—is fully visible in the source code.
2. No "Holy Grail" Claims: This is a technical analysis tool designed to identify historical price patterns. It does not predict future movements with certainty.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
Unlock powerful tools & indicators → pointalgo.com
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
Unlock powerful tools & indicators → pointalgo.com
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.