LQ sweep (DeadCat)

This indicator provides a streamlined approach to Smart Money Concepts (SMC) market structure analysis, focusing on identifying liquidity sweep patterns at key structural levels. The script tracks price action to detect when institutional liquidity is being targeted through systematic structure breaks.

Core Methodology:
The indicator employs a dual-pivot system (20/2 bars) to identify market structure points internally, then monitors for liquidity sweeps at these levels:

Trend Continuation Sweeps: When price breaks above Higher Highs (uptrend) or below Lower Lows (downtrend)

Trend Reversal Sweeps: When price breaks below Higher Lows (uptrend) or above Lower Highs (downtrend)

Market Structure Engine:
Automatically establishes initial trend direction from first two pivot points
Tracks structure progression internally without visual clutter
Requires 2-candle confirmation (bullish/bearish) before finalizing new structure levels
Maintains pending structure states until proper confirmation occurs

Liquidity Sweep Detection:

The indicator identifies four distinct liquidity sweep scenarios:
Bullish Continuation: HH break in established uptrend
Bearish Continuation: LL break in established downtrend
Bullish Reversal: LH break signaling potential uptrend resumption
Bearish Reversal: HL break signaling potential downtrend resumption

Key Features:
Simplified Interface: Single settings group for all liquidity sweep configurations
Flexible Label Positioning: Choose where sweep labels appear on lines
Consistent Visual Style: All sweeps use the same color/style for clarity
Minimal Chart Clutter: No market structure labels, only essential sweep markers

Unique Implementation:
Unlike traditional SMC indicators that display all structure points, this tool focuses exclusively on actionable liquidity sweeps. It maintains the mathematical rigor of structure tracking internally while presenting only the critical sweep levels where institutional activity is likely concentrated.

Usage:
Liquidity sweeps often precede significant moves as they represent areas where stop-losses accumulate. Traders can use these levels to:

- Identify potential reversal zones after sweep completion
- Spot continuation patterns when sweeps align with trend
- Time entries after liquidity has been collected
- Set stop-loss levels beyond recent sweep points

This indicator simplifies complex SMC concepts into actionable liquidity sweep signals, making it suitable for traders who want to focus on key institutional levels without overwhelming chart analysis.