OPEN-SOURCE SCRIPT
ID009 Liquidity Path [ReconHK]
A liquidity-focused chart indicator designed to help traders study whether price is reclaiming or holding above a key liquidity pivot, while also checking structural liquidity, traded activity, trend context, relative volume, and buyer-pressure confirmation.
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## 1. [Must read as user] What this indicator is for 🧭
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Liquidity Path is designed to help traders understand whether price is moving through a healthier liquidity area instead of chasing random breakouts. The indicator builds a liquidity profile from the selected lookback period, finds the main activity area, and marks the Liquidity Pivot, also known as the profile point of control.
The main idea is simple: price action near a high-activity area can be more meaningful than price action in a thin or fragmented area. When price reclaims or holds above the Liquidity Pivot with volume, buyer pressure, and trend support, the setup may show a stronger liquidity path.
This indicator is not a buy-or-sell system by itself. It is a decision-support tool for reviewing liquidity structure, participation, and price behavior around the profile pivot.
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## 2. [Must read as user] What you see on the chart 👀
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The indicator can show several visual elements:
The blue profile helps the user see where activity is concentrated. Thicker profile areas mean more activity was detected at that price zone. The orange Liquidity Pivot is the key reference level used by the path logic.
When price is above the Liquidity Pivot, the market is trading above the main activity reference. When price is below it, price is trading under that reference and may need a reclaim before the path setup improves.
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## 3. [Must read as user] How to read the Liquidity Pivot 🟠
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The Liquidity Pivot is the central level of this indicator. It represents the price area with the strongest smoothed activity inside the selected profile lookback.
A reclaim above the Liquidity Pivot can be useful because it shows that price has moved back above a major activity reference. A hold or retest above the pivot can also be important because it may show acceptance above that area instead of only a short-lived breakout.
The indicator checks whether price is:
This helps separate cleaner liquidity-path situations from late, extended, or weak moves.
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## 4. [Must read as user] Suggested workflow ✅
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A practical workflow:
The indicator is most useful when the user wants to study whether price is moving from a high-activity base into a stronger continuation path. It is less useful when the market is illiquid, fragmented, or moving with large gaps and weak participation.
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## 5. [Must read as user] Risk notes and correct expectations ⚠️
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This indicator does not guarantee that price will continue higher after reclaiming the Liquidity Pivot. A reclaim can fail, especially during weak market conditions, low-volume moves, news shocks, or broad market selloffs.
Important reminders:
This script does not place trades, manage positions, set stops, or calculate position size. It should be used only as a decision-support tool.
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## 6. [Optional technical explanation] Script structure and originality
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Pine Script®
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## 7. [Optional technical explanation] Structural liquidity filter
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Pine Script®
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## 8. [Optional technical explanation] Liquidity profile and pivot calculation
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Pine Script®
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# 9. [Optional technical explanation] Liquidity Path signal logic
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Pine Script®
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## 10. [Optional technical explanation] Inputs, visuals, alerts, and publication notes
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Pine Script®
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## 1. [Must read as user] What this indicator is for 🧭
------------------------------------------------------------------------------------------------
Liquidity Path is designed to help traders understand whether price is moving through a healthier liquidity area instead of chasing random breakouts. The indicator builds a liquidity profile from the selected lookback period, finds the main activity area, and marks the Liquidity Pivot, also known as the profile point of control.
The main idea is simple: price action near a high-activity area can be more meaningful than price action in a thin or fragmented area. When price reclaims or holds above the Liquidity Pivot with volume, buyer pressure, and trend support, the setup may show a stronger liquidity path.
This indicator is not a buy-or-sell system by itself. It is a decision-support tool for reviewing liquidity structure, participation, and price behavior around the profile pivot.
The purpose is to help traders avoid late or weak breakouts by checking whether price is close to the main liquidity pivot and supported by participation.
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## 2. [Must read as user] What you see on the chart 👀
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The indicator can show several visual elements:
- Blue liquidity profile: a right-side profile showing where more trading activity happened during the selected lookback.
- Orange Liquidity Pivot: the main profile pivot, based on the highest activity area of the profile.
- Lookback zone: the chart area used to build the liquidity profile.
- EMA 20 and EMA 50: optional trend-context lines.
- Optional bias background: subtle background showing whether price is above or below the Liquidity Pivot.
The blue profile helps the user see where activity is concentrated. Thicker profile areas mean more activity was detected at that price zone. The orange Liquidity Pivot is the key reference level used by the path logic.
When price is above the Liquidity Pivot, the market is trading above the main activity reference. When price is below it, price is trading under that reference and may need a reclaim before the path setup improves.
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## 3. [Must read as user] How to read the Liquidity Pivot 🟠
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The Liquidity Pivot is the central level of this indicator. It represents the price area with the strongest smoothed activity inside the selected profile lookback.
A reclaim above the Liquidity Pivot can be useful because it shows that price has moved back above a major activity reference. A hold or retest above the pivot can also be important because it may show acceptance above that area instead of only a short-lived breakout.
The indicator checks whether price is:
- above the Liquidity Pivot,
- not too far above the pivot,
- not too extended from the short-term trend,
- supported by relative volume,
- showing buyer-pressure behavior,
- aligned with the trend filter when enabled.
This helps separate cleaner liquidity-path situations from late, extended, or weak moves.
A reclaim is more useful when it happens near the pivot with participation. A move that is already too far above the pivot may be late and riskier.
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## 4. [Must read as user] Suggested workflow ✅
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A practical workflow:
- Start with the default settings.
- Keep Liquidity quality on Balanced for most liquid stocks and crypto.
- Use the blue liquidity profile to see where activity is concentrated.
- Watch the orange Liquidity Pivot as the main reference level.
- Check whether price is reclaiming or holding above the pivot.
- Use the relative volume setting to require real participation.
- Use the trend filter if you want signals to prefer EMA trend alignment.
- Avoid acting when price is already too far above the pivot or too extended from the EMA.
- Use alerts as chart-review reminders, not automatic trade instructions.
- Confirm the setup with your own support, resistance, market structure, news, and risk plan.
The indicator is most useful when the user wants to study whether price is moving from a high-activity base into a stronger continuation path. It is less useful when the market is illiquid, fragmented, or moving with large gaps and weak participation.
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## 5. [Must read as user] Risk notes and correct expectations ⚠️
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This indicator does not guarantee that price will continue higher after reclaiming the Liquidity Pivot. A reclaim can fail, especially during weak market conditions, low-volume moves, news shocks, or broad market selloffs.
Important reminders:
- The Liquidity Pivot is a reference level, not a guaranteed support level.
- A path signal is a confirmation event, not a complete trading plan.
- Relative volume can confirm participation, but it does not remove risk.
- Trend alignment can improve context, but trends can reverse.
- Thin or fragmented symbols may produce less reliable readings.
- Always define risk, stop logic, invalidation, and exit planning separately.
This script does not place trades, manage positions, set stops, or calculate position size. It should be used only as a decision-support tool.
Use the indicator to organize your liquidity and participation review. Do not use it as a substitute for risk management.
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## 6. [Optional technical explanation] Script structure and originality
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## 7. [Optional technical explanation] Structural liquidity filter
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## 8. [Optional technical explanation] Liquidity profile and pivot calculation
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# 9. [Optional technical explanation] Liquidity Path signal logic
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## 10. [Optional technical explanation] Inputs, visuals, alerts, and publication notes
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Open-source transparency note: if any external open-source code, function, or logic was reused, the original author and source should be credited clearly in the publication.
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ด้วยเจตนารมณ์หลักของ TradingView ผู้สร้างสคริปต์นี้ได้ทำให้เป็นโอเพนซอร์ส เพื่อให้เทรดเดอร์สามารถตรวจสอบและยืนยันฟังก์ชันการทำงานของมันได้ ขอชื่นชมผู้เขียน! แม้ว่าคุณจะใช้งานได้ฟรี แต่โปรดจำไว้ว่าการเผยแพร่โค้ดซ้ำจะต้องเป็นไปตาม กฎระเบียบการใช้งาน ของเรา
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน
สคริปต์โอเพนซอร์ซ
ด้วยเจตนารมณ์หลักของ TradingView ผู้สร้างสคริปต์นี้ได้ทำให้เป็นโอเพนซอร์ส เพื่อให้เทรดเดอร์สามารถตรวจสอบและยืนยันฟังก์ชันการทำงานของมันได้ ขอชื่นชมผู้เขียน! แม้ว่าคุณจะใช้งานได้ฟรี แต่โปรดจำไว้ว่าการเผยแพร่โค้ดซ้ำจะต้องเป็นไปตาม กฎระเบียบการใช้งาน ของเรา
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน