Dynamic Liquidity Depth [BigBeluga]

Dynamic Liquidity Depth [BigBeluga]
A liquidity mapping engine that reveals hidden zones of market vulnerability. This tool simulates where potential large concentrations of stop-losses may exist — above recent highs (sell-side) and below recent lows (buy-side) — by analyzing real price behavior and directional volume. The result is a dynamic two-sided volume profile that highlights where price is most likely to gravitate during liquidation events, reversals, or engineered stop hunts.

🔵 KEY FEATURES

• Two-Sided Liquidity Profiles:
  Plots two separate profiles on the chart — one above price for potential sell-side liquidity, and one below price for potential buy-side liquidity. Each profile reflects the volume distribution across binned zones derived from historical highs and lows.
  
• Real Stop Zone Simulation:
  Each profile is offset from the current high or low using an ATR-based buffer. This simulates where traders might cluster their stop-losses above swing highs (short stops) or below swing lows (long stops).
  
• Directional Volume Analysis:
  Buy-side volume is accumulated only from bullish candles (close > open), while sell-side volume is accumulated only from bearish candles (close < open). This directional filtering enhances accuracy by capturing genuine pressure zones.
  
• Dynamic Volume Heatmap:
  Each liquidity bin is rendered as a horizontal box with a color gradient based on volume intensity:
  - Low activity bins are shaded lightly.
  - High-volume zones appear more vividly in red (sell) or lime (buy).
  - The maximum volume bin in each profile is emphasized with a brighter fill and a volume label.
  
  
• Extended POC Zones:
  The Point of Control (PoC) — the bin with the most volume — is extended backwards across the entire lookback period to mark critical resistance (sell-side) or support (buy-side) levels.
  
• Total Volume Summary Labels:
  At the center of each profile, a summary label displays Total Buy Liquidity and Total Sell Liquidity volume.
  This metric helps assess directional imbalance — when buy liquidity is dominant, the market may favor upward continuation, and vice versa.
  
• Customizable Profile Granularity:
  You can fine-tune both Resolution (Bins) and Offset Distance to adjust how far profiles are displaced from price and how many levels are calculated within the ATR range.
  

🔵 HOW IT WORKS

• The indicator calculates an ATR-based buffer above highs and below lows to define the top and bottom of the liquidity zones.
  
• Using a user-defined lookback period, it scans historical candles and divides the buffered zones into bins.
  
• Each bin checks if bullish (or bearish) candles pass through it based on price wicks and body.
  
• Volume from valid candles is summed into the corresponding bin.
  
• When volume exists in a bin, a horizontal box is drawn with a width scaled by relative volume strength.
  
• The bin with the highest volume is highlighted and optionally extended backward as a zone of importance.
  
• Total buy/sell liquidity is displayed with a summary label at the side of the profile.
  

🔵 USAGE/b]

• Identify Stop Hunt Zones: High-volume clusters near swing highs/lows are likely liquidation zones targeted during fakeouts.
  
• Fade or Follow Reactions: Price hitting a high-volume bin may reverse (fade opportunity) or break with strength (confirmation breakout).
  
• Layer with Other Tools: Combine with market structure, order blocks, or trend filters to validate entries near liquidity.
  
• Adjust Offset for Sensitivity: Use higher offset to simulate wider stop placement; use lower for tighter scalping zones.
  

🔵 CONCLUSION
Dynamic Liquidity Depth [BigBeluga] transforms raw price and volume into a spatial map of liquidity. By revealing areas where stop orders are likely hidden, it gives traders insight into price manipulation zones, potential reversal levels, and breakout traps. Whether you're hunting for traps or trading with the flow, this tool equips you to navigate liquidity with precision.