How TM Liquidity Compass Organizes Market Structure and Liquidity in MT5

Understanding Liquidity and Market Structure with TM Liquidity Compass

Market structure and liquidity are closely connected. Price frequently moves from one liquidity area toward another, while structural changes help traders understand whether buyers or sellers currently have greater influence.

TM Liquidity Compass brings these elements together in one organized MetaTrader 5 chart. The indicator is now available completely free on the MQL5 Market.

Market Structure

The indicator identifies confirmed structural developments, including Break of Structure and Change of Character.

A Break of Structure can help identify continuation in the prevailing direction. A Change of Character can highlight an important shift in recent market behaviour.

Instead of treating every small price movement as a structural event, TM Liquidity Compass focuses on confirmed pivot-based developments.

Dynamic Dominant Zone

The indicator maintains one active dominant support or resistance zone.

A green zone represents active support, while a red zone represents active resistance. The zone is not intended to remain permanently on the chart. When it becomes weak or price clearly breaches it, the indicator can remove it and identify a more relevant area elsewhere.

This keeps the chart focused on the currently dominant location rather than filling it with numerous historical rectangles.

Premium, Equilibrium and Discount

TM Liquidity Compass divides the active market range into three value areas:

• Premium
• Equilibrium
• Discount

These areas help traders understand where price is positioned within the current range. They provide context rather than direct trade instructions.

Liquidity Objectives

The indicator displays the nearest relevant upper and lower liquidity objectives.

Upper liquidity represents an area above the current price where liquidity may be present. Lower liquidity represents a corresponding area below the market.

These objectives can help traders observe where price may seek liquidity, especially when combined with structural direction and value location.

Qualified Imbalance and FVG

The indicator also identifies qualified imbalance or Fair Value Gap areas.

Rather than displaying every small gap, the purpose is to retain the imbalances that remain relevant to the current market structure.

Compass Dashboard

The compact dashboard summarizes the active market condition. It can display information such as:

• Bullish or bearish structure
• Upper and lower liquidity
• Buyers, sellers or balanced pressure
• Bullish or bearish confluence
• Waiting for structure

The dashboard is designed to provide a quick market overview without covering the chart with unnecessary information.

Now Available Free

TM Liquidity Compass is now completely free on the MQL5 Market.

It is an analytical indicator and does not open, manage or close trades automatically. Traders should combine its information with their own analysis, trading plan and risk-management rules.

Download TM Liquidity Compass FREE:

https://www.mql5.com/en/market/product/195174

Alternatively, open the MetaTrader 5 Market and search for “TM Liquidity Compass.”