Liquidity Trails

Liquidity Trails
A Volatility-Anchored Market Expectation & Risk Mapping Tool

Have you ever been stopped out by normal market noise?
Have you noticed price reacting around “invisible boundaries” that aren’t obvious on a naked chart?

Liquidity Trails was designed to address exactly that problem — by mapping statistical daily price expectations using fixed higher-timeframe volatility data.

This indicator does not predict direction.
Instead, it helps traders understand where price is statistically expected to travel within a given session or period, allowing for more informed risk placement and expectation management.

📌 Core Features
1️⃣ Fixed Timeframe Volatility Anchoring

All calculations are derived from a user-selected anchor timeframe (Daily, Weekly, Monthly, or custom), ensuring that levels remain stable and unchanged when switching chart timeframes.

This prevents intraday recalculation noise and keeps reference levels consistent throughout the anchor period.

2️⃣ Average Daily Range (ADR) Projection

The indicator calculates ADR based on historical price ranges and projects:

Estimated upper expansion level
Estimated lower expansion level

These levels represent statistical price boundaries, not support or resistance claims.

3️⃣ ATR Context Levels

Average True Range (ATR) bands are plotted from the same anchor timeframe to provide context for volatility expansion vs contraction.

This allows traders to visually assess whether price is operating within, near, or beyond typical volatility conditions.

4️⃣ Volatility-Adjusted Stop Reference Levels

Optional stop reference levels are plotted at a configurable percentage of ADR (default: 60%), helping traders evaluate whether their risk placement is:

Too tight (high noise exposure)
Too wide (reduced reward efficiency)
Statistically aligned with market behavior

5️⃣ Timeframe-Independent Visualization

Levels are drawn using step-style plots, ensuring they:

Remain flat for the entire anchor period
Update only when a new anchor candle begins
Do not repaint intraday

🧠 How This Indicator Is Best Used

Liquidity Trails is intended as a context and risk framework, not an entry signal.

It complements:

Structure-based trading
Liquidity sweep models
Mean-reversion or expansion strategies
Discretionary and systematic approaches

Use price action, structure, or your existing strategy for entries — use this tool to define expectations and manage risk.

💡 Suitable For

Intraday traders seeking stable daily reference levels
Swing traders anchoring weekly or monthly volatility
Traders who want objective volatility context without clutter

🔔 Disclaimer

This indicator is a visual analytical tool only.
It does not provide trade signals or financial advice.
All trading decisions and risk management remain the responsibility of the user.