LIQUIDITY HEATMAP Trading Guide

The Liquidity HeatMap visually identifies and computes pools of historical liquidity resting above and below the current market price, acting much like a dynamic order book generated from past price pivots and volume anomalies.

What does the indicator show?

• High Liquidity Zones (Yellow): Target Resistance zones generated at historical pivot highs possessing strong relative volume. The brighter the zone, the stronger the resting liquidity.
• Low Liquidity Zones (Lime): Target Support zones generated at historical pivot lows. Bright lime indicates heavy support.
• Heads-up Dashboard: An overlay table that directly compares the total liquidity above the price against the total liquidity below, outputting an imbalance delta.
• Zone Sweeping: Once a zone's midpoint is crossed (swept) by price action, it is considered consumed and is removed from the active heatmap.

Key Settings

• Min Zone Strength %: Filters out weak liquidity pools. Setting this to 50% means only pivots with volume >= 50% of the rolling maximum will be drawn.
• Lookback & ATR Period: Adjusts the depth of history checked and the volatility-based thickness of the liquidity bands.

How to use Strategy Parameters (Condition Source)

This indicator provides unique mathematical measurements of the surrounding market liquidity.

1. Market Imbalance

• Total Liquidity Above / Below — The absolute SUM of all active zone strengths acting as ceilings or floors.
• Liquidity Ratio (Above/Below) — A ratio. If > 1, there is more liquidity above (price is generally drawn upward to liquidity).
• Diff — The raw difference. Positive means more liquidity rests above the price.

Strategy Example: Only buy when the market is heavily skewed to draw price higher: Liquidity Ratio > 1.5.

2. Zone Interactions

• Nearest High Zone / Low Zone — The exact bounding coordinates of the closest liquidity pools.
• High Zone Swept / Low Zone Swept — Fires entirely when a zone is breached.
• Price In High/Low Zone — Boolean state indicating the price is currently navigating through a thick liquidity pool.

Strategy Example: Execute a short entry precisely when a resting buy pool is consumed: Low Zone Swept is_true.