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.
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
Unlock powerful tools & indicators → pointalgo.com
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
Unlock powerful tools & indicators → pointalgo.com
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。