Liquidity Swings

The Liquidity Swings indicator highlights swing areas with large trading activity for traders to find accumulation/distribution zones as well as levels to trade as support and resistance . The number of times price revisited a swing area is highlighted by a zone delimiting the areas. Additionally, the accumulated volume within swing areas is highlighted by labels on the chart.

An option to filter out swing areas with volume /counts not reaching a user set threshold is also included.

Settings

• Pivot Lookback: Lookback period used for the calculation of pivot points .
  
• Swing Area: Determines how the swing area is calculated, "Wick Extremity" will use the range from price high to the maximum between price close/open in case of a swing high, and the range from price low to the minimum between price close/open in case of a swing low. "Full Range" will use the full candle range as swing area.
  
• Intra-bar Precision: Use intra-bar data to calculate the accumulated volume within a swing area, this allows more precise results.
  
• Filter Areas By: Determines how swing areas are filtered out, "Count" will filter out swing areas where price visited the area a number of time inferior to the user set threshold. "Volume" will filter out swing areas where the accumulated volume within the area is inferior to the user set threshold.

Style

• Swing High: Shows swing highs.
  
• Swing Low: Shows swing lows.
  
• Label Size: Adjusts the size of labels on the chart.

Usage

The Liquidity Swings indicator can be used to highlight significant swing areas which can be used as accumulation/distribution zones on lower timeframes that might play a role as future support or resistance.

Swing levels are also highlighted. When a swing level is broken it's displayed as a dashed line. A broken swing high is a bullish indication, while a broken swing low is a bearish indication.

Filtering swing areas by volume allows the indicator to only show significant swing areas with a higher degree of liquidity. These swing areas can be wider, highlighting higher volatility , or might have been visited by the price more frequently.

Note that swing points are confirmed after Pivot Lookback bars, as such all elements are displayed retrospectively.