Liquidity Profiler Tools

The Liquidity Profiler Tools is indicator identifies major buy-side and sell-side liquidity levels and visualizes internal buyer/seller activity through volume delta-filled quadrants, providing a complete toolkit for analyzing liquidity sweeps and potential reversals.

Detection

The indicator utilizes a pivot-based detection system. When a swing high is confirmed, a Buy-Side Liquidity (BSL) zone is created; a swing low creates a Sell-Side Liquidity (SSL) zone. The script includes "Filter Overlaps" logic to ensure chart clarity. If a new, more significant pivot forms within the range of an existing active zone, the tool can automatically update to the most relevant level, preventing the clutter of multiple overlapping boxes.

This tool splits each zone into four horizontal quadrants. As price trades within these quadrants, the script calculates the volume delta (the difference between buying and selling pressure) for each specific section.

Buy Zones: Indicates aggressive buyers were more active in that specific price slice.

Sell Zones: Indicates aggressive sellers dominated that section.

Reversal Detection

The script includes an detection system that identifies unusual volume patterns during liquidity sweeps. These signals are displayed as text as follows:

• ABS (Absorption): Occurs when aggressive market orders at the extreme edge of a zone are absorbed by large limit orders in the opposite direction.
• EXH (Exhaustion): Occurs when a sweep happens on very low relative volume, suggesting no follow-through.
• DIV (Divergence): Identified when high volume pushes into the edge of a zone (FOMO) but price fails to close outside the level.
• REJ (Snapback Rejection): Triggered when a sweep candle shows high delta in the opposite direction of the sweep and closes back inside the zone.

Dashboard:

The indicator includes a real-time dashboard that tracks the historical performance of each reversal signal type using a time-based validation logic.

Win recorded if within the Eval Window, the price reverses from the sweep and remains in profit (on the correct side of the signal entry) for a specific number of consecutive bars (Hold Time). 

Zone Decay (Health):

Active zones feature a "Health" percentage label. This tracks the cumulative volume traded within the zone relative to its capacity. As more volume is transacted at these levels, the liquidity is considered "consumed," and the percentage drops toward 0%.

Indicator Settings