Dive into the essence of institutional trading, exposing deeper liquidity depth pursued by institutional giants and astute bank traders that lay further than the mere extremities of price with the Liquidity Depth [Pro+].
Liquidity Depth° [Pro+]
Concept Introduction & Indicator Features
Liquidity Depth Pro+ is a trading tool with a remarkable adaptability and perfectly aligned with the intricate demands of the futures, forex, and bond markets. This indicator is based on a concept taught by the Inner Circle Trader (ICT), who explains that institutions tend to dig deeper into Liquidity Pools above highs and below lows. Specifically, ICT mentions how in Forex these Liquidity Depths are classically manifested as 10-20-30 pips respectively.
This tool allows the Analyst to adapt this concept based on their understanding of price. It delves into the essence of institutional trading, exposing deeper liquidity depth pursued by institutional giants and astute bank traders that lay further than the mere extremities of price.
Indicator Features
Versatility Across Assets: Liquidity Depth Pro+ is finely tailored for futures, forex, and bond markets, making it an all-encompassing solution suitable for a broad range of financial instruments.
Timeframe Customization: Liquidity Depth Pro+ allows users to decide Timeframe Liquidity empowering the analyst with flexibility.
Historical Pools: Choose up to the last 20 highs and lows to mark liquidity pools from the User Selected Timeframe.
Universal Trading Style: Regardless of your trading approach, be it trend-following or reversal models, this indicator embraces all styles. It offers a holistic perspective to navigating liquidity zones above highs and below lows of the chosen Timeframe.
Visual Precision: This indicator visualizes the liquidity depth with a customizable style, allowing the analyst to frame the position of deeper liquidity pools above highs and below lows.
Liquidity Table: Keep track of liquidity levels and unlock faster decision making by taking advantage of the visual Liquidity Table cues.
Adaptive Table Colors: When price is above your desired liquidity pool high, the table will match the liquidity high color to indicate a current liquidity raid or deeper pool being attacked. Vice versa, when price is below your desired liquidity pool low, the table will match the liquidity low color.
Real-Time Alerts: Save Time with live alerts that provide valuable insights into potential opportunities and liquidity purges at your desired liquidity levels.
Settings and Usage
Alerts
To setup alerts, follow these easy steps:
Make sure your Alerts tab is toggled with a check mark
Head Over to the Indicator Name and Click the 3 Dots that reads “More”
After clicking the 3 Dots, a menu will pop up where you would like to hover over and select “Add Alert on LD° [Pro+]”
After selecting “Add Alert”, a new popup will then appear where you will see your Liquidity Depth Settings as well as the related inputs. This example would be setting alerts for the Liquidity Depth of Previous Days Highs and Lows and 10-20-30 Point Depths.
Anytime we would hit the selected Alert Line, the analyst will receive an alert saying “[Instrument Name!] Crossing Liquidity Depth Level or Depth Extensions”
Analyst Insights:
Analysts often look at different charts and different timeframes at the same time. The alert function saves analysts time by eliminating the need to constantly check whether the market has reached a certain liquidity pool or not. Never miss setups! As time is a very valuable asset and we only have so much in a day, it’s essential to manage it correctly. The alert system makes sure analysts never miss potential setups or scenario’s while looking away from the chart.
Liquidity Pools Settings
Type
This drop-down menu allows you to choose what type of liquidity pool the indicator will show. Candle: Plot the liquidity depth based on previous candles Session: Plot the liquidity depth based on a previous session OSFL: Plot the liquidity depth based on ICT”s One Setup For Life lecture from the 2023 mentorship.
Candle
Session
OSFL
Timeframe
This setting changes the timeframe of the candle the indicator should reference. The ‘NY Days?’ button will save Previous Daily Highs and Previous Daily Lows based on New York Time (00:00 - 00:00 EST.)
Session The settings function allows you to customize the trading session that will be used when selecting the Session option under type.
Previous Liquidity Pools
Customize how many previous liquidity pools should be displayed on the chart.
Liquidity Depth Settings
Liquidity Depth Type
This setting defines the way the depth is calculated based on the asset class. Auto: Defines the liquidity depth based on the tpye of marked.
“Value” for Futures
“Pips” for Forex and Currency Futures
“Ticks” for Bonds Futures
“Value” will define the Liquidity Depth directly with the numbers inputted by the user ”Ticks” will define the Liquidity Depth using the minimum tick movement for the current market.
“Pips” will define the Liquidity Depth using the appropriate pip value, only if the current market is a Foreign Currency Pair (FX) or Currency Futures.
Depth 1, Depth 2, Depth 3
The depth options allow the user to customize the Liquidity Depth levels based on personal preference. This setting also contains the appearance customization. Choose between a solid, dotted or dashed line and change the thickness of the line
Analyst Insights:
The option to change the depth of the liquidity pool is very valuable, as it allows different type of traders to utilize the indicator. If a trader trades on the lower timeframe as a scalper, the amount of points/ticks/pips above or below a liquidity pool might be lower when looking for a liquidity raid. A swing trader or short term trader however, might need to see larger liquidity depth levels.
Liquidity Table
The Liquidity Table shows the exact price levels of all the Liquidity Pools, based on the selection of the ‘Type’ setting. It will also display whether it is a high, or a low.
Analyst Insights:
Knowing at what price level a liquidity pool or the depth lies is important from an analysis perspective because it allows the analyst to couple these levels with the institutional levels taught by ICT. These institutional levels are: 00 20 50 80 levels. On NQ Futures for example. 20,000 - 20,200 - 20,500 -20,800 EURUSD Forex: 1.10000 - 1.10200 - 1.10500 - 1.10800
