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Liquidity & Volume Profile Framework [invincible3]

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Liquidity & Volume Profile Framework [invincible3]

The Liquidity & Volume Profile Framework is a price-action and volume-profile framework designed to help traders identify high-probability trading zones using liquidity, value area structure, fair value gaps, and volume confirmation.

This indicator is built around the idea that strong trades usually happen when price reacts around important institutional zones such as POC, VAH, VAL, HVN/LVN areas, and liquidity pools created around equal highs and equal lows.

The tool does not simply give random buy or sell signals. Instead, it maps the market structure so the trader can wait for proper confluence before entering.

Core Concept

This indicator follows a structured institutional trading workflow:

Step 1 — Read the Market Structure

The indicator identifies key volume-profile levels:

POC — Point of Control
The price level with the highest volume concentration inside the selected lookback range.

VAH / VAL — Value Area High and Value Area Low
The upper and lower boundary of the value area, based on the selected value-area percentage.

HVN / LVN Zones
High-volume and low-volume areas are displayed as volume-profile bars.
HVN zones can act like magnets, while LVN zones often behave like thin liquidity zones where price can move quickly.

BSL / SSL Liquidity Pools
The indicator tracks swing highs and swing lows to identify potential buy-side liquidity and sell-side liquidity.

Step 2 — Wait for a Trigger

The indicator highlights possible institutional reaction triggers:

Liquidity Sweep
A bullish sweep occurs when price takes out a prior swing low and closes back above it.
A bearish sweep occurs when price takes out a prior swing high and closes back below it.

This helps identify possible stop-hunt behavior around liquidity pools.

Fair Value Gap — FVG
Bullish and bearish imbalance zones are detected automatically.
These areas can act as retracement zones where price may return before continuation.

VA / POC Touch
Reactions around VAH, VAL, or POC can provide important confluence when combined with sweep or FVG logic.

Step 3 — Confirm with Volume

The indicator includes a volume spike condition.

A volume spike is detected when current volume is greater than the selected moving-average volume multiplied by the chosen spike multiplier.

By default, the logic uses:

Volume > 1.5 × Average Volume

This helps highlight moments where institutional participation may be stronger than normal.

Step 4 — Entry Logic

The strongest setups usually appear when multiple conditions align in the same zone:

Liquidity sweep + FVG fill + VAH / VAL / POC reaction + volume spike

Example bullish setup:

Price sweeps sell-side liquidity below a prior swing low, closes back above the level, returns into a bullish FVG, reacts near VAL or POC, and shows increased volume.

Example bearish setup:

Price sweeps buy-side liquidity above a prior swing high, closes back below the level, returns into a bearish FVG, reacts near VAH or POC, and shows increased volume.

Step 5 — Risk Framework

The indicator is designed to support structured risk planning:

Stop Loss
Usually placed just beyond the swept liquidity level.

Target 1
Often the POC or opposite value-area boundary.

Target 2
The opposing liquidity pool or major high-volume / low-volume area.

Visual Legend

Orange line — POC
Dotted adaptive lines — VAH / VAL
Gold bars — High-volume areas / HVN
Purple bars — Low-volume areas / LVN
Green dashed sweep line — Sell-side liquidity sweep
Red dashed sweep line — Buy-side liquidity sweep
Green boxes — Bullish Fair Value Gaps
Red boxes — Bearish Fair Value Gaps
Gold circles — Volume spike confirmation

Main Features
  • Automatic fixed-lookback volume profile
  • POC, VAH, and VAL calculation
  • High-volume and low-volume profile bars
  • Bullish and bearish liquidity sweep detection
  • Buy-side and sell-side liquidity mapping
  • Automatic bullish and bearish FVG zones
  • FVG extension until fill or expiry
  • Volume spike confirmation using volume moving average
  • Theme-adaptive colors for dark and light charts
  • Institutional-style visual framework
  • Clean overlay design for price-action trading


Best Timeframes

This tool works best when used with a top-down approach.

For structure:

4H / Daily

For entries:

15m / 1H

Recommended workflow:

Use higher timeframe to identify POC, VAH, VAL, HVN, LVN, and major liquidity pools.
Then use lower timeframe to wait for liquidity sweep, FVG reaction, rejection candle, and volume confirmation.

Suggested Settings

For intraday trading:

VP Lookback: 100–200
VP Rows: 40–60
Value Area: 70%
Pivot Length: 5–10
Volume MA: 20
Volume Spike Multiplier: 1.5

For swing trading:

VP Lookback: 200–300
VP Rows: 50–80
Value Area: 70%
Pivot Length: 10–20
Volume MA: 20–50
Volume Spike Multiplier: 1.5–2.0

Important Notes

This indicator is not a standalone buy/sell signal system.
It is a confluence framework.

The highest-quality trades usually occur when liquidity, volume profile, imbalance, candle rejection, and volume confirmation all align in the same area.

Always wait for candle-close confirmation before entering.
Use proper stop loss and risk management.

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