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Liquidity Confluence [I.M]
Liquidity Confluence [I.M]
A confluence indicator that combines Smart Money Concepts (Fair Value Gaps and Break of Structure) with a rolling Volume Profile. Instead of treating SMC and volume analysis as separate tools, this indicator uses Volume Profile as a filter — only highlighting SMC events that occur inside high-volume zones (Value Area), where institutional liquidity is concentrated.
▶ WHY COMBINE SMC WITH VOLUME PROFILE?
SMC indicators alone produce many signals — most of them irrelevant noise. Volume Profile alone shows where liquidity sits but says nothing about direction. Combined, they answer the question every trader needs: "Is this structural break happening at a price level the market actually cares about?"
▶ COMPONENTS
1. ROLLING VOLUME PROFILE
A histogram of volume distributed across price rows, recalculated on every bar over the last N candles (default 150). Three key levels are derived:
- POC (Point of Control): the price with highest traded volume
- VAH (Value Area High): upper bound of the volume zone
- VAL (Value Area Low): lower bound of the volume zone
The histogram is rendered on the right side with a clean visual hierarchy:
- POC bar in solid yellow (the magnet level)
- VAH/VAL bars in violet (the boundary edges)
- Value Area bars in blue (the fair value zone)
- Out-of-VA bars in gray (low-interest zones)
2. FAIR VALUE GAPS (FVG)
3-candle imbalances where price moved too fast to fill. By default, only FVGs whose midpoint falls inside the Value Area are displayed — these are the high-probability gaps backed by real liquidity. Mitigated FVGs are automatically removed when price closes through them, keeping the chart clean.
3. BREAK OF STRUCTURE (BOS)
Detected when price closes beyond a recent swing high (bullish BOS) or swing low (bearish BOS). A BOS that breaks BEYOND the POC is marked as a strong signal (BOS ⬆ / BOS ⬇ with thicker line). A BOS that doesn't break the POC is considered weak — useful information rather than a tradeable signal.
▶ HOW TO TRADE WITH IT
The indicator is designed to filter, not predict. Use it as a confluence layer on top of your existing setup:
LONG SETUP:
- Price below POC, sweeps liquidity (low) and reclaims VAL
- Bullish FVG forms inside Value Area
- BOS ⬆ above POC confirms institutional commitment
SHORT SETUP:
- Price above POC, sweeps liquidity (high) and rejects VAH
- Bearish FVG forms inside Value Area
- BOS ⬇ below POC confirms institutional distribution
KEY LEVELS TO WATCH:
- Reaction at POC: strong magnet level, expect rejection or continuation
- Break of VAH/VAL: signals trend acceleration outside fair value
- Price returning to POC after breakout: classic retest opportunity
▶ SETTINGS
Volume Profile:
- Lookback: how many bars the profile considers (default 150)
- Profile Rows: vertical resolution of the histogram (default 60)
- Value Area %: percentage of volume defining the VA (default 70%)
- Histogram Width: visual width of the bars
SMC:
- Show FVGs / Only show FVGs inside Value Area
- Remove mitigated FVGs (cleaner chart)
- Max FVGs to display
- BOS Pivot Length (higher = only major swings)
- Only show BOS that breaks POC (extra filter)
Visual:
- Fully customizable colors for POC, Value Area, VA edges (VAH/VAL), histogram, bullish and bearish elements
- Optional info panel showing current levels and price location
▶ ALERTS INCLUDED
- Cross above/below POC
- Break above/below Value Area
- Bullish / Bearish BOS
▶ NOTES
This is a confluence tool, not a signal generator. It works best on liquid instruments with reliable volume data (futures, crypto, major forex pairs). On low-volume tickers, the profile may be noisy.
The unilateral filtering philosophy is intentional: most SMC signals fail because they ignore liquidity context. By gating events through the Value Area, the indicator forces traders to wait for confluence rather than chasing every gap or break.
Open-source. Feedback and forks welcome.
A confluence indicator that combines Smart Money Concepts (Fair Value Gaps and Break of Structure) with a rolling Volume Profile. Instead of treating SMC and volume analysis as separate tools, this indicator uses Volume Profile as a filter — only highlighting SMC events that occur inside high-volume zones (Value Area), where institutional liquidity is concentrated.
▶ WHY COMBINE SMC WITH VOLUME PROFILE?
SMC indicators alone produce many signals — most of them irrelevant noise. Volume Profile alone shows where liquidity sits but says nothing about direction. Combined, they answer the question every trader needs: "Is this structural break happening at a price level the market actually cares about?"
▶ COMPONENTS
1. ROLLING VOLUME PROFILE
A histogram of volume distributed across price rows, recalculated on every bar over the last N candles (default 150). Three key levels are derived:
- POC (Point of Control): the price with highest traded volume
- VAH (Value Area High): upper bound of the volume zone
- VAL (Value Area Low): lower bound of the volume zone
The histogram is rendered on the right side with a clean visual hierarchy:
- POC bar in solid yellow (the magnet level)
- VAH/VAL bars in violet (the boundary edges)
- Value Area bars in blue (the fair value zone)
- Out-of-VA bars in gray (low-interest zones)
2. FAIR VALUE GAPS (FVG)
3-candle imbalances where price moved too fast to fill. By default, only FVGs whose midpoint falls inside the Value Area are displayed — these are the high-probability gaps backed by real liquidity. Mitigated FVGs are automatically removed when price closes through them, keeping the chart clean.
3. BREAK OF STRUCTURE (BOS)
Detected when price closes beyond a recent swing high (bullish BOS) or swing low (bearish BOS). A BOS that breaks BEYOND the POC is marked as a strong signal (BOS ⬆ / BOS ⬇ with thicker line). A BOS that doesn't break the POC is considered weak — useful information rather than a tradeable signal.
▶ HOW TO TRADE WITH IT
The indicator is designed to filter, not predict. Use it as a confluence layer on top of your existing setup:
LONG SETUP:
- Price below POC, sweeps liquidity (low) and reclaims VAL
- Bullish FVG forms inside Value Area
- BOS ⬆ above POC confirms institutional commitment
SHORT SETUP:
- Price above POC, sweeps liquidity (high) and rejects VAH
- Bearish FVG forms inside Value Area
- BOS ⬇ below POC confirms institutional distribution
KEY LEVELS TO WATCH:
- Reaction at POC: strong magnet level, expect rejection or continuation
- Break of VAH/VAL: signals trend acceleration outside fair value
- Price returning to POC after breakout: classic retest opportunity
▶ SETTINGS
Volume Profile:
- Lookback: how many bars the profile considers (default 150)
- Profile Rows: vertical resolution of the histogram (default 60)
- Value Area %: percentage of volume defining the VA (default 70%)
- Histogram Width: visual width of the bars
SMC:
- Show FVGs / Only show FVGs inside Value Area
- Remove mitigated FVGs (cleaner chart)
- Max FVGs to display
- BOS Pivot Length (higher = only major swings)
- Only show BOS that breaks POC (extra filter)
Visual:
- Fully customizable colors for POC, Value Area, VA edges (VAH/VAL), histogram, bullish and bearish elements
- Optional info panel showing current levels and price location
▶ ALERTS INCLUDED
- Cross above/below POC
- Break above/below Value Area
- Bullish / Bearish BOS
▶ NOTES
This is a confluence tool, not a signal generator. It works best on liquid instruments with reliable volume data (futures, crypto, major forex pairs). On low-volume tickers, the profile may be noisy.
The unilateral filtering philosophy is intentional: most SMC signals fail because they ignore liquidity context. By gating events through the Value Area, the indicator forces traders to wait for confluence rather than chasing every gap or break.
Open-source. Feedback and forks welcome.
Açık kaynak kodlu komut dosyası
Gerçek TradingView ruhuyla, bu komut dosyasının mimarı, yatırımcıların işlevselliğini inceleyip doğrulayabilmesi için onu açık kaynaklı hale getirdi. Yazarı tebrik ederiz! Ücretsiz olarak kullanabilseniz de, kodu yeniden yayınlamanın Topluluk Kurallarımıza tabi olduğunu unutmayın.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
Açık kaynak kodlu komut dosyası
Gerçek TradingView ruhuyla, bu komut dosyasının mimarı, yatırımcıların işlevselliğini inceleyip doğrulayabilmesi için onu açık kaynaklı hale getirdi. Yazarı tebrik ederiz! Ücretsiz olarak kullanabilseniz de, kodu yeniden yayınlamanın Topluluk Kurallarımıza tabi olduğunu unutmayın.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.