Internal and External LiquidityThis script is designed to visualize one of the most fundamental concepts in the ICT algorithmic framework: The cycle between Internal and External Liquidity.
According to ICT, the Interbank Price Delivery Algorithm continuously moves price in a loop—from drawing on resting orders at the absolute highs/lows of a dealing range (External Liquidity), back down into inefficiencies within that range (Internal Liquidity), and then back out again.
Here is exactly how the script brings this concept to life on your chart:
1. External Liquidity (The Dealing Range)
To identify the macro boundaries of the current dealing range, the script tracks "Major Swings" (which default to 15-bar pivots).
Ext BSL & Ext SSL: When a major high or low forms, it draws a thick, solid line extending forward in time. This acts as the outer boundary where the heaviest cluster of retail stop losses rests.
2. Internal Liquidity (Minor Swings & FVGs)
Once the dealing range is established, price will often consolidate or retrace within it. The script maps two types of internal liquidity that the algorithm uses to re-price before attacking the external bounds:
Minor Swings: These are short-term highs and lows (default 3-bar pivots) trapped inside the dealing range. They are marked with thinner, dashed lines.
Fair Value Gaps (FVGs): The script automatically highlights active bullish and bearish FVGs with slightly transparent boxes. FVGs act as massive internal magnets for price.
3. Dynamic Mitigation & Sweeps
The true power of this script is that it dynamically updates to reflect real-time liquidity consumption:
If price wicks past an External or Minor Swing line, the line stops extending (because the liquidity has been swept).
If price dips into an FVG box and completely fills the gap, the box immediately stops drawing (because the inefficiency has been rebalanced).
How to use it:
By watching the interplay between these drawings, you can track the algorithmic narrative. For example, if you see price completely fill an internal FVG (Internal Liquidity), you can immediately look up to the thick "Ext BSL" line (External Liquidity) to identify the algorithm's likely next target. Indicator
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External Indicator Analysis Overlay | Buy/Sell | HTF Heikin-AshiThis chart overlay offers multiple candlestick display options. The Regular (Japanese) and the Heikin-Ashi candles are well known. The Mari-Ashi (or Renko) option is something special as it should be timeframe independent, so that sideways action should be represented in one candle. That is difficult to realize as an overlay on the normal candlestick structure, but perhaps the chosen implementation is useful nonetheless. The Velocity option is experimental and is designed to show if the price has accelerated too much in a trend direction. In this case, the highs and lows do not reflect the actual highs and lows, but indicate the overshooting velocity. The opening of the candle also depends on the inherent velocity, but the close of the candle is always the actual close. Anyway, it doesn't look very useful, but the option is there.
All options can be applied to higher timeframes. A usable setting is obtained by disabling only the body of the PulseWire candles in regular mode and enabling this overlay.
A large part of this overlay consists of buy/sell indication settings. For activation it is necessary to select an external source. For example the “Relative Bi-Directional Volatility Range”, specifically the Trend Shift Signal (TSS). This signal switches from 0 to 1, if the trend becomes bullish or from 0 to -1, if the trend becomes bearish. It will be automatically detected without specifying the Indication Type. Alternatively, the Volatility Moving Average (VMA) would meet the requirements for the Indication Type “Buy = positive | Sell = negative”. The Moving Average Convergence Divergence (MACD) also fulfills these conditions. Another example is to use any Moving Average with the Indication Type “Buy = rising | Sell = falling”. In the chart above the Hull Moving Average (HMA) is used. In addition, it is possible to reverse the signal, so that positive signals become negative and vice versa. The signals will be labeled as Buy or Sell on the chart.
The user can analyze whether the provided signals are good or bad indications for going long or short or simply for rebalancing a portfolio. Therefore, it is possible to set a starting point for the analysis and choose a weighting for the investments from 0% to 100% of the portfolio. To avoid sleepless nights, a very reliable (and conservative) setting seems to be Rebalancing with 50% (very similar to the well-known 60/40 portfolio). The calculation results are shown in a table.
As a small addition there is the possibility to label the peaks by setting the distance between the highs/lows. This will make the quality of the buy and sell signals even more clear.
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