Historical Liquidity

15 Jul

Historical Liquidity Indicator – Backtesting Mitigated Hidden Order Blocks

The Historical Liquidity Indicator is a companion tool to the Hidden Liquidity Indicator. It is designed to help traders visualize Hidden Order Blocks (HOBs), Partial Hidden Order Blocks (PHOBs) after they’ve been touched by price action.

This allows traders to perform historical market structure analysis, evaluate the effectiveness of past liquidity zones, and conduct systematic backtesting of mitigation-based strategies.
Purpose & Utility
Unlike the standard Hidden Liquidity Indicator, which focuses on active, untouched zones, the Historical Liquidity Indicator highlights zones that have already been mitigated.

It provides a clear historical trail of where hidden liquidity was previously located and how the market responded—offering valuable insights for:
• Identifying the success/failure rate of HOBs across time
• Analyzing price behavior after mitigation (retests, continuations, reversals)
• Supporting the development and refinement of liquidity-based trading strategies
• Recognizing recurring mitigation patterns over time

How It Works
This indicator uses the same core logic as the Hidden Liquidity Indicator—focused on the relationship between Fair Value Gaps (FVGs) and candle bodies—but tracks zones that have fully mitigated.

Mitigation logic is based on:
• HOB: Candle body fully fits inside the FVG and has now been touched by price
• PHOB: Candle body fits at least 50% inside the FVG and is later mitigated

Once mitigation is detected, the zone is stored and visualized historically, allowing traders to track the evolution of price in relation to prior hidden liquidity.
Visualization & Settings

Mitigated zones are clearly marked using distinct color schemes, that can be chosen individually.

You can toggle visibility of each type (HOBs, PHOBs) through the settings panel.

Why It Matters

While many indicators show current order blocks, this tool gives context by showing which liquidity zones were previously respected or invalidated by price. This makes it an ideal tool for:
• Quantifying past performance of liquidity zones
• Identifying support/resistance formed by mitigated blocks
• Enhancing discretionary or liquidity based strategies using historical validation
Important Notes

This is a closed-source indicator built on a custom methodology for detecting and tracking mitigated liquidity zones. While the internal logic remains proprietary, this description outlines the key concepts and use-cases so traders can understand how to apply it.
NFA.

15 Jul

Nota Keluaran

update chart

15 Jul

Nota Keluaran

update chart