Liquidity Pool Heatmap
- Indicators
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PATRICK PAARSCH
Performance of my Expert Advisors (Liquidity Lab) on Myfxbook: myfxbook.com/members/Stonedandrich/liquidity-lab/12248060 - Version: 1.20
- Activations: 15
Liquidity Pool Heatmap – Where the Stops Are Waiting: Buy-Side and Sell-Side Liquidity as a Heatmap with Profile
Liquidity Pool Heatmap shows where stop orders are likely resting: above swing highs (buy-side liquidity, BSL) and below swing lows (sell-side liquidity, SSL). Every pool is drawn as a heat line on your chart – the stronger the pool, the thicker and brighter the line. A profile on the right shows how the open liquidity is spread across price.
WHAT YOU SEE
- Heat lines above swing highs (buy-side) and below swing lows (sell-side), from the swing to the live candle.
- Strength by thickness and opacity, a glow around strong pools, the strongest pool highlighted.
- Labels for the strongest pool above and below price: price, share of all open liquidity in percent and the number of merged equal highs / lows (for example "x3").
- Recently swept pools stay visible as faded dashed lines with a dot at the sweep candle, so you see where liquidity was just taken.
- Profile on the right: share of each price zone in the total open liquidity, the strongest zone highlighted.
HOW A POOL IS BUILT
- Every confirmed swing high / low (swing strength adjustable, default 5 bars left and right) creates a pool, placed a small stop buffer beyond the swing (x ATR).
- Weight = relative volume around the swing compared to the average volume (can be switched off).
- Equal highs / equal lows close to each other (within x ATR) are merged into one pool: the weights add up and the level moves to the outermost swing, because the stops sit beyond all of them.
- Age decay: a pool loses weight over time (half-life in bars, 0 = off).
- A pool disappears as soon as price trades through it (wick or candle close, your choice).
WITH VOLUME DELTA CANDLES MTF IT BECOMES A CHEAT CODE
Liquidity Pool Heatmap shows where the liquidity is. Volume Delta Candles MTF shows who is in control when price gets there. Combined, you see at once whether a pool is swept and absorbed or defended: price runs into a heat line and the candle color tells you whether buyers or sellers are really behind the move. The screenshots show exactly this combination: the candle colors come from Volume Delta Candles MTF. You find Volume Delta Candles MTF on my MQL5 profile page under Products.
BUILT FOR A SMOOTH TERMINAL
- Every closed candle is calculated once; per tick only the live candle is checked for sweeps.
- Limited history (max bars to calculate, default 1500) with a warm-up buffer.
- Redrawn only when something changes (new candle, sweep, zoom, scroll, color scheme).
- Zoom adaptive: text size and line thickness follow the chart zoom, texts are hidden when zoomed far out.
COLORS
Input "Color scheme": Auto (default) follows the color scheme of your chart and updates live when you change it, Custom uses the color inputs (buy-side blue, sell-side red, strongest pool orange).
INPUTS (SELECTION)
Max bars, swing strength, stop buffer, merge distance, volume weighting, real volume, half-life, sweep mode (wick / close), max pools per side, line thickness, glow, swept pools, labels, profile rows / width / distance, pin profile to the right edge, color scheme, font size.
GOOD TO KNOW
- Pools are estimates from price swings and tick volume (or real volume), not order-book data.
- A swing is confirmed only after the set number of bars to its right. The pool appears then and is not moved afterwards – it can only be merged, aged or swept.
- Enable "Chart shift" so the profile has free space right of the live candle; otherwise it is pinned to the right edge.
IMPORTANT NOTE
This indicator is an analysis aid, not a trading system and not investment advice. Trading leveraged products carries a high risk of loss. Test your use of the indicator on a demo account first.
