Liquidity Raids and Sweeps

Hello Traders!

Liquidity is a vital concept in trading. It gives us an indication of where buy / sell orders are in the market, and the direction price is likely to move once this liquidity has been taken. The purpose of this indicator is to show you when and where there has been a 'raid' or 'sweep' of this liquidity, meaning a reversal might occur. The indicator does this by looking for candle wicks, that goes beyond a previous pivot high or low.

Discover the power of tracking market liquidity with our cutting-edge indicator! It accurately identifies 'raids' or 'sweeps' of liquidity, giving you a crucial heads-up about potential price reversals. By analyzing candle wicks surpassing previous pivot highs or lows, it offers invaluable insights into the market's next moves. Customize the settings to fit your trading style, adjusting parameters such as timeframe, gaps, and pivot strength. You can even set up alerts to never miss an opportunity.

In the example below featuring BTC/USDT, we observe an intriguing dynamic. Initially, the price dives towards the downside liquidity (marked by the red lines). However, it doesn't maintain this trajectory for long. Instead, it reverses its course, heading straight into the upside liquidity (illustrated by the green lines). This exemplifies how the market explores liquidity 'pools' and often changes direction after 'sweeping' them.

In the indicator's settings menu, you can adjust its sensitivity using the 'Left Bars' and 'Right Bars' functions. For example, in our current scenario, we've set the tool to 5 left bars and 1 right bar. As you can compare with the main image at the beginning of the description, this setting results in fewer signals on the chart. The selection of these parameters largely depends on your individual trading style.

This indicator is perfect for traders who understand the significance of liquidity, this indicator won't give you direct buy/sell signals. Instead, it equips you with the necessary knowledge to make confident, informed trading decisions. Dive into the fast-paced world of market liquidity tracking but remember, like any other tool, it's essential to use it alongside risk management practices, as it doesn't replace financial advice.

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