OPEN-SOURCE SCRIPT
Liquidity Radar Engine [MarkitTick]
💡 The financial markets operate on a continuous search for liquidity, moving dynamically from areas of consolidation to zones of unmitigated resting orders. This technical evaluation tool is engineered to objectively map these critical liquidity thresholds and provide a comprehensive framework for identifying high-probability market reversals and continuation phases. By tracking the exact interaction between historical pivot structures and real-time volume dynamics, it offers a highly systemic, algorithmic approach to charting price action.
✨ Originality and Utility
● A Synergistic Approach to Market Dynamics
Standard technical tools typically evaluate a single dimension of market data, such as momentum or trend direction, which frequently leads to fragmented analysis and false signals. This script stands out by synthesizing pure price structure, volume delta approximation, and multi-timeframe consensus into a unified visual environment. It removes the guesswork from order block and liquidity trading by mathematically defining structural shifts.
• Justification of the Integrated Logic
This tool is a deliberate fusion of price action concepts and mathematical volume filtering. Relying strictly on a breakout of a previous day's high or low can be highly susceptible to false moves and liquidity traps. By incorporating a relative volume (RVOL) filter and a proprietary candle-based delta estimation, the tool validates structural shifts with quantifiable market participation. Additionally, the inclusion of momentum divergence protocols ensures that price action is aligned with the anticipated structural pivot, filtering out low-probability setups in exhausted trends.
🔬 Methodology and Concepts
● Core Analytical Framework
The script operates by mapping significant price extremes across varying temporal horizons and evaluating the market's precise reaction when these zones are breached.
• Liquidity Sweep Detection
The algorithm constantly monitors the Highs and Lows of the Previous Day, Week, and Month. When current price action breaches one of these levels but fails to sustain the breakout—closing back inside the defined range—a sweep zone is generated. This defines a failed auction mechanism where stops may have been triggered without genuine directional follow-through from larger market participants.
• Equal Highs and Lows (EQH/EQL)
To identify resting liquidity pools, the script evaluates historical pivot points within an adjustable lookback window. Using the Average True Range (ATR) as a dynamic tolerance threshold, it mathematically defines whether two separate swing points are functionally "equal," marking them as magnetic targets for future price action.
• Structural Shifts and Displacement
Once a sweep occurs, the engine scans for a localized Change in State of Delivery (CISD). A valid shift requires displacement, which is measured by comparing the breakout candle's body size against a moving average of recent candle bodies, or by the immediate formation of a Fair Value Gap (FVG).
• Multi-Factor Validation
Signals are not generated strictly on price structure. They must pass a rigorous matrix of internal filters:
🎨 Visual Guide
● Chart Elements and Topography
The visual interface is meticulously designed to present complex, multi-dimensional data without obfuscating the primary candlestick action.
• Historical Liquidity Levels
• Structural Zones and Markers
• Execution and Management Visuals
• The Multi-Timeframe (MTF) Dashboard
A tabular data panel positioned on the chart displays the trend and liquidity status across three distinct timeframes. It also features a comprehensive statistics section monitoring the active trading session, the current volatility regime, the count of unfilled fair value gaps, and the dynamic risk-to-reward ratio of any open simulated positions.
📖 How to Use
● Interpreting the Data
The primary workflow involves observing the direct interaction between price velocity and the mapped structural zones.
• Executing an Analysis
• Trade Management
⚙️ Inputs and Settings
● Configuration Options
The script is heavily modular, allowing for extensive adjustment of its internal validation logic.
• General and Display Limits
Toggle the visibility of specific liquidity levels (Daily, Weekly, Monthly) and limit the maximum number of historical zones, FVG clouds, or signal boxes retained on the chart to maintain a highly optimized workspace.
• Validation Filters
• Target and Management Settings
• Dashboard and Visual Preferences
Modify the specific timeframes monitored by the MTF panel, alter its position, and heavily customize the color palettes for all sweep zones, lines, heatmaps, and interface text.
🔍 Deconstruction of the Underlying Scientific and Academic Framework
● Theoretical Foundations
The architecture of this script is grounded in several well-documented financial theories, primarily focusing on Auction Market Theory and the statistical modeling of price volatility distributions.
• Auction Market Theory and Liquidity
The core premise of the sweep detection logic rests securely on the concept of order matching and liquidity cascades. Markets move constantly to facilitate trade, frequently gravitating toward areas with a high density of resting stop orders, such as historical highs and lows. When these areas are breached but fail to attract aggressive participation, the auction process is deemed to have failed. This script mathematically quantifies these failed auctions by tracking the spatial relationship between the breakout wick and the closing price relative to the historical pivot.
• Statistical Variance and Normalization
The tool heavily utilizes the Average True Range (ATR) as a core normalization factor. Financial time series exhibit continuous heteroskedasticity, meaning volatility varies over time. Hardcoding a fixed point-value for concepts like "Equal Highs" or "Trailing Stops" is mathematically flawed. By utilizing ATR ratios, the algorithm rapidly adapts its spatial thresholds to the current standard deviation of price movement, ensuring highly consistent behavior across varying market regimes and asset classes.
• Momentum Divergence and Rate of Change
The inclusion of oscillators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) serves to measure the first and second derivatives of price—specifically velocity and acceleration. By actively requiring a divergence between price extremes and momentum extremes, the script effectively filters for environments where the kinetic energy of the prevailing trend is decaying, thereby increasing the statistical probability of a mean-reverting event or structural reversal.
• Volume Delta Approximation
While granular tick data is technically required for an exact volume delta calculation, the script employs a highly robust approximation algorithm that distributes volume proportionally across the candle's spread. This provides a quantifiable metric of localized supply and demand imbalances, adhering strictly to the Wyckoffian principle of Effort versus Result, ensuring that price moves are backed by actual transactional weight.
⚠️ Disclaimer
All provided scripts and indicators are strictly for educational exploration and must not be interpreted as financial advice or a recommendation to execute trades. We expressly disclaim all liability for any financial losses or damages that may result, directly or indirectly, from the reliance on or application of these tools. Market participation carries inherent risk where past performance never guarantees future returns, leaving all investment decisions and due diligence solely at your own discretion.
✨ Originality and Utility
● A Synergistic Approach to Market Dynamics
Standard technical tools typically evaluate a single dimension of market data, such as momentum or trend direction, which frequently leads to fragmented analysis and false signals. This script stands out by synthesizing pure price structure, volume delta approximation, and multi-timeframe consensus into a unified visual environment. It removes the guesswork from order block and liquidity trading by mathematically defining structural shifts.
• Justification of the Integrated Logic
This tool is a deliberate fusion of price action concepts and mathematical volume filtering. Relying strictly on a breakout of a previous day's high or low can be highly susceptible to false moves and liquidity traps. By incorporating a relative volume (RVOL) filter and a proprietary candle-based delta estimation, the tool validates structural shifts with quantifiable market participation. Additionally, the inclusion of momentum divergence protocols ensures that price action is aligned with the anticipated structural pivot, filtering out low-probability setups in exhausted trends.
🔬 Methodology and Concepts
● Core Analytical Framework
The script operates by mapping significant price extremes across varying temporal horizons and evaluating the market's precise reaction when these zones are breached.
• Liquidity Sweep Detection
The algorithm constantly monitors the Highs and Lows of the Previous Day, Week, and Month. When current price action breaches one of these levels but fails to sustain the breakout—closing back inside the defined range—a sweep zone is generated. This defines a failed auction mechanism where stops may have been triggered without genuine directional follow-through from larger market participants.
• Equal Highs and Lows (EQH/EQL)
To identify resting liquidity pools, the script evaluates historical pivot points within an adjustable lookback window. Using the Average True Range (ATR) as a dynamic tolerance threshold, it mathematically defines whether two separate swing points are functionally "equal," marking them as magnetic targets for future price action.
• Structural Shifts and Displacement
Once a sweep occurs, the engine scans for a localized Change in State of Delivery (CISD). A valid shift requires displacement, which is measured by comparing the breakout candle's body size against a moving average of recent candle bodies, or by the immediate formation of a Fair Value Gap (FVG).
• Multi-Factor Validation
Signals are not generated strictly on price structure. They must pass a rigorous matrix of internal filters:
- Relative Volume (RVOL): Requires the sweep or shift to occur with volume significantly exceeding the recent moving average.
- Cumulative Volume Delta (CVD): Approximates buying and selling pressure within the candle spread to confirm directional momentum.
- Trend Alignment: Evaluates the current price against a long-term Exponential Moving Average (EMA).
- Volatility Squeeze Avoidance: Uses ATR ratios to actively block signals in exceptionally low-volatility environments.
- Currency Correlation: Compares the traded pair against a reference index to ensure macroeconomic alignment.
- News Blackout: Blocks all signals during user-defined, high-impact news windows to protect against erratic slippage.
🎨 Visual Guide
● Chart Elements and Topography
The visual interface is meticulously designed to present complex, multi-dimensional data without obfuscating the primary candlestick action.
• Historical Liquidity Levels
- PDH/PDL Lines: Displayed as subtle, translucent lines indicating the Previous Day's High and Low.
- PWH/PWL Lines: Denoting the Previous Week's extremes in distinct, moderately visible hues.
- PMH/PML Lines: Marking the Previous Month's extremes for macro higher-timeframe context.
- Equilibrium Line: A distinct midline drawn between the daily extremes to gauge intraday premium and discount pricing.
• Structural Zones and Markers
- Sweep Zones: Highlighted boxes marking the exact area of a failed breakout. Buy-side sweeps appear in a muted green-toned box, while sell-side sweeps are marked in a red-toned box. These zones feature active aging, gently fading as time progresses.
- FVG Clouds: Displayed as gold or yellow background areas denoting supply/demand imbalances.
- EQH/EQL Markers: Small textual annotations above or below the price, bounded by a semi-transparent box, indicating concentrated liquidity pools.
• Execution and Management Visuals
- Signal Labels: Distinct text markers indicating validated Buy or Sell conditions upon bar close.
- Position Boxes: When a signal is active, a structured box appears showing the Entry level (dashed neutral line), Stop Loss (dashed red line), and up to three Take Profit targets (dashed teal lines).
- Heatmap Candles: The main chart candles are dynamically colored based on the dominant daily bias or RSI momentum.
• The Multi-Timeframe (MTF) Dashboard
A tabular data panel positioned on the chart displays the trend and liquidity status across three distinct timeframes. It also features a comprehensive statistics section monitoring the active trading session, the current volatility regime, the count of unfilled fair value gaps, and the dynamic risk-to-reward ratio of any open simulated positions.
📖 How to Use
● Interpreting the Data
The primary workflow involves observing the direct interaction between price velocity and the mapped structural zones.
• Executing an Analysis
- Wait for a visual Sweep Zone to form, indicating that a significant historical level has been tested and rejected by the market.
- Observe the Signal Labels. A signal is only printed if the internal confluence engine—validating volume, delta, and structural displacement—has fully approved the setup.
- If the FVG entry model is active, wait for price to retrace into the highlighted Fair Value Gap cloud before considering the setup valid for engagement.
• Trade Management
- Utilize the plotted Position Boxes to evaluate the mathematical risk profile. The entry, stop loss, and targets are drawn directly on the chart for immediate visual feedback.
- Monitor the MTF Dashboard to ensure the lower timeframe execution signal is not fighting a dominant higher timeframe trend.
- If Dynamic Trade Management is enabled, closely observe the Stop Loss line as it automatically trails price based on the selected ATR, Swing, or Chandelier mathematical logic.
⚙️ Inputs and Settings
● Configuration Options
The script is heavily modular, allowing for extensive adjustment of its internal validation logic.
• General and Display Limits
Toggle the visibility of specific liquidity levels (Daily, Weekly, Monthly) and limit the maximum number of historical zones, FVG clouds, or signal boxes retained on the chart to maintain a highly optimized workspace.
• Validation Filters
- Volume Validation: Adjust the Moving Average length and the RVOL threshold multiplier to define what constitutes a genuine volume climax.
- Delta Filter: Toggle the requirement for estimated volume delta to perfectly align with the signal direction.
- Divergence Source: Choose whether the script requires RSI, MACD, or a combination of both to display divergence before validating a reversal.
- ADX Threshold: Define the strict minimum trend strength required for continuation signals.
• Target and Management Settings
- Risk to Reward (R:R) Inputs: Define the exact mathematical multiples for Target 1, Target 2, and Target 3.
- Position Sizing: Input an account balance and risk percentage to have the engine calculate the exact unit size for the plotted setup.
- Trailing Logic: Select between None, ATR-based, Swing-based, or Chandelier-based trailing stops, complete with user-defined multiplier adjustments and partial profit scaling.
• Dashboard and Visual Preferences
Modify the specific timeframes monitored by the MTF panel, alter its position, and heavily customize the color palettes for all sweep zones, lines, heatmaps, and interface text.
🔍 Deconstruction of the Underlying Scientific and Academic Framework
● Theoretical Foundations
The architecture of this script is grounded in several well-documented financial theories, primarily focusing on Auction Market Theory and the statistical modeling of price volatility distributions.
• Auction Market Theory and Liquidity
The core premise of the sweep detection logic rests securely on the concept of order matching and liquidity cascades. Markets move constantly to facilitate trade, frequently gravitating toward areas with a high density of resting stop orders, such as historical highs and lows. When these areas are breached but fail to attract aggressive participation, the auction process is deemed to have failed. This script mathematically quantifies these failed auctions by tracking the spatial relationship between the breakout wick and the closing price relative to the historical pivot.
• Statistical Variance and Normalization
The tool heavily utilizes the Average True Range (ATR) as a core normalization factor. Financial time series exhibit continuous heteroskedasticity, meaning volatility varies over time. Hardcoding a fixed point-value for concepts like "Equal Highs" or "Trailing Stops" is mathematically flawed. By utilizing ATR ratios, the algorithm rapidly adapts its spatial thresholds to the current standard deviation of price movement, ensuring highly consistent behavior across varying market regimes and asset classes.
• Momentum Divergence and Rate of Change
The inclusion of oscillators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) serves to measure the first and second derivatives of price—specifically velocity and acceleration. By actively requiring a divergence between price extremes and momentum extremes, the script effectively filters for environments where the kinetic energy of the prevailing trend is decaying, thereby increasing the statistical probability of a mean-reverting event or structural reversal.
• Volume Delta Approximation
While granular tick data is technically required for an exact volume delta calculation, the script employs a highly robust approximation algorithm that distributes volume proportionally across the candle's spread. This provides a quantifiable metric of localized supply and demand imbalances, adhering strictly to the Wyckoffian principle of Effort versus Result, ensuring that price moves are backed by actual transactional weight.
⚠️ Disclaimer
All provided scripts and indicators are strictly for educational exploration and must not be interpreted as financial advice or a recommendation to execute trades. We expressly disclaim all liability for any financial losses or damages that may result, directly or indirectly, from the reliance on or application of these tools. Market participation carries inherent risk where past performance never guarantees future returns, leaving all investment decisions and due diligence solely at your own discretion.
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.
💡 Proprietary indicators. Original research. Built by analysts who trade.
👑 Premium: markittick.com
📢 Free Telegram: t.me/MarkitTick_Updates
👑 Premium: markittick.com
📢 Free Telegram: t.me/MarkitTick_Updates
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.
💡 Proprietary indicators. Original research. Built by analysts who trade.
👑 Premium: markittick.com
📢 Free Telegram: t.me/MarkitTick_Updates
👑 Premium: markittick.com
📢 Free Telegram: t.me/MarkitTick_Updates
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.