Liquidity sweep zone V2 [Liquidation heatmap]

kelmarin

"Liquidity Sweep Zone V2" Indicator Description for Professional Traders
Overview

The "Liquidity Sweep Zone V2" indicator combines Volume and Open Interest (OI) data to visualize potential liquidity concentration areas and changes in major market participants' positions. This indicator helps traders identify hidden support and resistance zones and track smart money movements to refine their trading decisions, using two core elements: Volume Liquidity and OI-based Liquidity.

Notably, it integrates OI data from multiple major exchanges (Binance, Bybit, OKX, BITGET, HTX, Deribit) to provide a comprehensive analysis of overall market position changes for a specific symbol.




🎯Key Features

1. Multi-Exchange OI Data Integration:

• Fetches and integrates real-time Open Interest (OI) data from major futures exchanges including Binance, Bybit, OKX, BITGET, HTX, and Deribit for integrated analysis. This reduces biases that might arise from single-exchange data and allows for a more accurate understanding of overall market OI changes.
  
• The ability to selectively activate/deactivate OI data for each exchange allows for focused analysis on specific markets or a broader market view.
  

2. Volume Liquidity Zone:

• Visualizes the concentration of trading volume at specific past price levels. These areas represent price points where market participants have previously traded in large quantities, potentially acting as significant support or resistance.
  
• Color and Thickness Changes by Strength: Line colors (orange-hued) and thickness vary based on the strength of the volume liquidity (highest, second highest, medium, low), allowing for intuitive identification of more critical liquidity zones.
  
• A customizable Liquidity multiplier allows adjustment of the sensitivity of the line display position.
  

3. Open Interest (OI) based Liquidity Zone:

• Visualizes price levels where significant changes in OI (delta) occurred within the current bar. These areas indicate price levels where large-scale new long or short positions might have been opened or liquidated.
  
• Long/Short Position Identification: If OI increases during a bullish candle, it's considered a long position entry (sky blue line). If OI increases during a bearish candle, it's considered a short position entry (magenta line).
  
• OI Strength Emphasis: OI liquidity zones are highlighted with yellow-hued colors and varying line thicknesses based on their strength (highest, second highest), making key OI change areas clearly recognizable.
  

4. Timeframe-Optimized Visualization:

• Allows selection of timeframes (1 minute, 3 minutes, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours) on which the indicator should be displayed.
  
• Individual Line Thickness settings for each timeframe enable optimization of visibility, e.g., thicker lines on lower timeframes and thinner lines on higher timeframes.
  

5. Real-time Alerts:

• Provides a feature to send real-time alerts to the user when volume liquidity (long/short) or OI liquidity (long/short) reaches its highest strength. This is useful for capturing key market turning points or breakdowns/breakouts of strong supply/demand zones.
  

📊Trading Applications

1. Support/Resistance Identification:

• Volume Liquidity Zones: When price reaches these areas, they represent past supply/demand zones with heavy trading, making them likely to act as strong support or resistance. High level or 2nd High level volume liquidity zones are particularly important.
  
• OI Liquidity Zones: Areas where OI lines are concentrated indicate regions where new positions have been massively established, which can serve as critical psychological/technical support/resistance lines for future price movements.
  

2. Smart Money Tracking:

• OI liquidity lines show traces of large market participants' (smart money) position entries or liquidations.
  
• During a price rally, strong OI Long Color (sky blue) or High level (yellow) OI lines forming suggest active long position entries, indicating potential further upside.
  
• During a price decline, strong OI Short Color (magenta) or High level (yellow) OI lines forming suggest active short position entries, indicating potential further downside.
  

3. Breakout and Reversal Confirmation:

• If price breaks through a strong liquidity zone (especially yellow highlighted lines), it suggests a potential acceleration of the trend in that direction.
  
• Price stalling or reversing at a liquidity zone indicates that the zone is acting as effective support/resistance, potentially offering entry or exit opportunities.
  
• Utilize the alert function to avoid missing these breakout or reversal points.
  

4. Risk Management:

• Strong liquidity zones can be used as criteria for setting stop-losses. For example, when entering a long position, setting a stop-loss below a major support liquidity zone can help manage risk.
  

5. Multi-Timeframe Analysis:

• Strong liquidity zones formed on higher timeframes (e.g., 1-hour, 2-hour) can significantly influence lower timeframes (e.g., 5-minute, 15-minute). Analyzing liquidity zones across multiple timeframes can increase the reliability of trading signals.
  

⚙️Settings Guide

• OI Data Sources: Activate/deactivate OI data for the exchanges you wish to use. You can activate all exchanges for a comprehensive view or focus on specific markets.
  
• Liquidity multiplier: A lower value draws liquidity lines closer to the candle body, making them more sensitive. A higher value moves them further away, representing broader areas.
  
• Liquidity positions: Select All, Long, or Short to display all liquidity, only long liquidity, or only short liquidity.
  
• Color Settings (Low/Mid/High/2nd High level): Configure the colors for different strengths of volume liquidity lines.
  
• Display Volume/OI Liquidity lines: Set whether to display each type of liquidity line.
  
• Display Liquidity on Timeframes: Select the timeframes on which the indicator should be displayed. Deactivating unnecessary timeframes can reduce chart clutter.
  
• Line Thickness by Timeframe: Set the base thickness of volume liquidity lines for each timeframe.
  
• OI Line Display: Configure the colors (OI Long Color, OI Short Color) and thickness (OI Line Width) of OI liquidity lines.
  
• Enable Alerts: Set whether to enable liquidity-related alerts and customize alert messages.
  

📌Disclaimer

• This indicator is based on historical data and does not guarantee future price movements.
  
• While OI data updates in real-time, there might be slight delays due to the nature of request.security calls.
  
• The indicator is a supplementary tool and should not be used in isolation. It is crucial to combine it with other analytical tools (trend, patterns, fundamental analysis, etc.) to enhance the reliability of trading decisions.
  
• Settings should be optimized to suit market conditions and individual trading styles.
  

18 jam lalu

Nota Keluaran

2025-10-31
Added input options and changed default settings.
Fixed some bugs.

18 jam lalu

Nota Keluaran

Change the default heatmap color.

18 jam lalu

Nota Keluaran

Remove unnecessary comments.
Optimize source code.