ICT MSS & Liquidity indicator calculates two pivot points and the most likely location of the liquidity. The two pivot points are called Major and Internal. Both can be configured and adjusted separately to suit the instrument being traded and how the trader prefers to trade.
Major Trend Major Trend is usually a better indicator of the trend direction. This is because it encapsulates longer period and allows for price fluctuation reducing the number of false Market Structure Shifts (MSS). There is no set numeric value for the Pivot Length (number of bars used to calculate the high and low points). The pivot length is a judgement call by the trader and can be adjusted to what the trader feels comfortable with.
In the image above, a trader can see that the Major trend is making lower low move where it has swept liquidity (dotted line) and has the potential to reverse direction, if higher timeframe provides supporting evidence.
Internal Trend Internal Trend is usually used to identify an internal shift in market structure that may, but not guaranteed, indicates that the Major Trend's current leg movement is about to reverse direction. It is not an indicator in itself that the overall Major trend is about to make major change in direction.
For example, if the Major trend is showing Lower Lows and Lower Highs, a higher high on the Internal Trend could simply mean that the Major Trend is done with a Lower Low move and about to make a lower high move and not sweep the liquidity above the previous lower high. If, however, the larger picture indicates that the Major Trend has reached a potential reversal point, the Internal Trend could be used to corroborate that thesis by forming the higher high.
In the image above, the internal trend provides an indication that a market structure shift is probably under way and, if proper analysis performed, a position can be entered.
Liquidity Liquidity rests above highs and lows on both Major and Internal trends. The indicator will draw both open and claimed liquidity lines. Price tends to move towards liquidity and, if enabled, the indicator provides an easy way to identify potential targets. Liquidity could be drawn on both Major and Internal Trends.
This is what I've been looking for! I've tried dozens of other indicators to try and nail specific levels of liquidity with no effect. The settings required some modification but I got there eventually for my target time frame.
My question is: Would it be possible to have a couple of drop downs for different timeframes. So for example, you could have a drop down for the 4hr chart (with lower pivot lengths), and another for the 15m with slightly higher pivot lengths, and finally the sub-10m timeframes with even higher pivot lengths.
The benefit would be that the indicator would only need to be applied once per chart. My current workaround is applying the indicator multiple times, changing the settings and the visibility to target the timeframes I want - or keeping in mind the pivot levels I want per timeframe and adjusting them as I do my top-down analysis.
Is any more work on this indicator planned in the future? Thank you.
fadizeidan
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@Alzei, I had 4 or 5 different versions of this until I settled on this one. I did try higher timeframe as major/primary, the problem was that higher timeframe pivots did not make sense on lower ones. I need to rewrite this indicator and add detection for relative equal highs, and some other things. I will see if I should HTF option back. I deleted my old code, will have to redo it.
Alzei
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@fadizeidan, No problems mate, my workaround is working for the time being so no stress! Thank you so much for this indicator.
@fadizeidan, hello, first of all, good luck to you. I have a request from you. When confirming with other indicators, the lines get very confused. So can you put a $ above or next to the Line?
alexey0007
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I want to say a huge and human thank you for your work.
ukmpits
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@fadizeidan Sir. I thought that this version Is much better than HTF one.. which Is more accurate plus there Is market structure HH LL in this version.. Would you like to open the code for this version Sir? Thanks mate
jmswoon
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This is great! Possible for a tiny change - option to configure thickness of the lines? :)
fadizeidan
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@jmswoon, switch to Institutional Order Flow indicator, it combines this indicator and imbalances.
This is what I've been looking for! I've tried dozens of other indicators to try and nail specific levels of liquidity with no effect. The settings required some modification but I got there eventually for my target time frame.
My question is: Would it be possible to have a couple of drop downs for different timeframes. So for example, you could have a drop down for the 4hr chart (with lower pivot lengths), and another for the 15m with slightly higher pivot lengths, and finally the sub-10m timeframes with even higher pivot lengths.
The benefit would be that the indicator would only need to be applied once per chart. My current workaround is applying the indicator multiple times, changing the settings and the visibility to target the timeframes I want - or keeping in mind the pivot levels I want per timeframe and adjusting them as I do my top-down analysis.
Is any more work on this indicator planned in the future? Thank you.