Liquidity Grabs | Flux Charts

22 בפבר׳ 2024

💎 GENERAL OVERVIEW
Introducing our new Liquidity Grabs indicator! This indicator can renders bubbles with different sizes at candles that have liquidity grabs, which happen when a liquidity areas (buyside / sellside liquidity) is swept. These candles often fill a lot of market orders that were sitting on the liquidity zone. You can check "How Does It Work" section for more information.



Features of the new Liquidity Grabs Indicator :

1. Renders Liquidity Grabs
   
2. Customizable Algorithm
   
3. Customizable Styles
   
4. Alerts
   

🚩UNIQUENESS
Liquidity grabs can be useful when determining candles that have executed a lot of market orders, and planning your trades accordingly. This indicator renders liquidity grabs in an unique bubble style, the size of the bubble is calculated by the size of the wick that caused the liquidity grab. The indicator also lets you customize the pivot length and the wick-body ratio for liquidity grabs.

📌 HOW DOES IT WORK ?
Liquidity grabs occur when one of the latest pivots has a false breakout. Then, if the wick to body ratio of the bar is higher than 0.5 (can be changed from the settings) a bubble is plotted. Using the wick length as a metric to measure liquidity is good because long wicks can translate to a large amount of buyers / sellers entering the market.


The bubble size is determined by the wick to body ratio of the candle.

⚙️SETTINGS

1. General Configuration

Pivot Length -> This setting determines the range of the pivots. This means a candle has to have the highest / lowest wick of the previous X bars and the next X bars to become a high / low pivot.

Wick-Body Ratio -> After a pivot has a false breakout, the wick-body ratio of the latest candle is tested. The resulting ratio must be higher than this setting for it to be considered as a liquidity grab.