DOL Draw on Liquidity

DOL identifies market structure and price inefficiency zones on financial charts.

The algorithm scans price history to identify the four key points of market structure. Detection begins by searching for the most recent absolute high level, classified as HH, or Higher High. Right after, the HL level, or Higher Low, is identified, marking the starting point of the impulsive movement. The scan continues with the identification of LH, or Lower High, an area signaling a loss of bullish momentum. Finally, the LL point, or Lower Low, is determined, representing the lower boundary of the structure.

Once these four values are defined, the tool draws horizontal reference lines on the chart. When price moves and breaks or mitigates the extreme HH and LL levels, the indicator automatically generates visual buy or sell arrow signals to indicate a potential market entry, simultaneously triggering an audio warning or alert notification.

In addition to the main structure, the indicator detects Fair Value Gaps, which are liquidity gaps left by impulsive price movements. To filter out minor inefficiencies, an ATR-based algorithm is used to calculate and display only gaps of significant size. Each Fair Value Gap zone is drawn as a rectangle on the chart and extends to the right until price returns to mitigate the area by the set percentage.

All parameters regarding colors, line styles, signal sizes, ATR sensitivity, and inefficiency zone management can be freely customized in the settings panel.