LGZ – Liquidity Gravity Zones v1

21 בנוב׳

📌 LGZ – Liquidity Gravity Zones (SVI + Net CVD + Volume)
Original Liquidity-Driven Price Magnet Model by Thomas Aaroon
📘 Concept Overview

LGZ (Liquidity Gravity Zones) is a new, original liquidity-based price-attraction model built using three core components:

SVI (Shock Volume Index) – measures abnormal volume spikes at each strike

Net CVD (NCP = CE_CVD − PE_CVD) – the real directional order-flow imbalance

Total Volume (CE + PE) – true liquidity density at each strike

Using these three elements, the indicator calculates Liquidity Gravity Weight (LGW) for every strike and identifies the strongest zones that attract price during the session.

🧠 Why This Indicator?

Traditional OI-based methods (long build-up, short build-up, OI change etc.) often lag.
LGZ focuses only on:

Real traded volume

Actual buy/sell aggression (CVD)

Shock events

Dealer hedging pressure

Strike-level liquidity clusters

This makes it far more responsive for intraday traders.

⭐ Core Formula
Liquidity Gravity Weight (LGW)
LGW = |SVI| × |Net CVD| × Total Volume


Where:

SVI = Shock Volume Index (Z-score based)

Net CVD (NCP) = CE_CVD − PE_CVD

Total Volume = CE_volume + PE_volume

LGW indicates how strongly a strike is pulling price toward it.

🎯 What the Indicator Shows
✔ Top Liquidity Gravity Zones (LGZ-1, LGZ-2, LGZ-3)

These are the strongest price magnets for the day.

✔ Gravity Lines on Chart

Each LGZ is plotted as a horizontal magnet line extending to the right.

✔ Strike-Level Liquidity Table

Shows:

Strike

SVI (Shock intensity)

LGW (Gravity strength)

This table gives a complete picture of the intraday liquidity landscape.

📈 How to Use (Intraday Trading Strategy)
🔵 1. Price gravitates toward LGZ-1

If price is below LGZ-1 → upward pull
If price is above LGZ-1 → downward pull

🔵 2. LGZ Flips = Trend Change

If LGZ-1 suddenly jumps to a different strike:
→ strong trend acceleration

🔵 3. LGZ Cluster = Reversal / Consolidation Zone

Multiple LGZ levels around the same strike indicate
→ liquidity saturation → reversal or slowdown.

🔵 4. Combine with Price Action

Best clarity on 5-minute timeframe
Use 1-minute only for entry.

🔬 Why LGZ Works

The indicator models the same reality driving option markets:

Where option volume + orderflow (CVD) + shock liquidity concentrate,
market makers hedge, and price moves toward that strike.

This is the foundation of dealer hedging mechanics and liquidity-based price movement.

🔧 Inputs

Symbol prefix (e.g., NIFTY)

Expiry (YYMMDD)

Center strike & range

Number of gravity zones

Color customization

24 בנוב׳

הערות שחרור

LGZ – Liquidity Gravity Zones v1.1

LGZ v1.1 identifies high-pressure liquidity zones in index options using a combined volume–positioning model.

Core Components

3-Day SVI (Shock Value Index)
A Z-score of merged CE+PE volumes detecting abnormal spikes or drops.

NCP (Net Cumulative Positioning)
CE CVD − PE CVD, indicating directional pressure from option traders.

LGW (Liquidity Gravity Weight)
LGW = |SVI| × |NCP| × Total Volume
Higher LGW = stronger liquidity magnet.

Features in v1.1

Manual strike-range control (center strike ±5 strikes)

Supports both CE and PE volume/CVD in one computation loop

Ranks strongest liquidity clusters using LGW

Auto-draws colored LGZ lines (LGZ-1, LGZ-2, ...)

Synchronized table showing Strike, SVI, LGW for quick scanning

Optimized multi-series requests for better performance

Usage

Apply on index spot or futures chart and input:

Symbol prefix (e.g., NIFTY)

Expiry in YYMMDD

ATM strike & step (50/100)

Number of Zones to highlight

Useful for identifying liquidity magnets, supply-demand pressure zones, and high-impact areas where price often reacts.