Liquidity Radar# Liquidity Radar
## Overview
Liquidity Radar is a Smart Money Concepts (SMC) indicator that visualizes where institutional liquidity rests in the market. It combines automatic market structure detection (BOS & CHoCH), a thermal liquidity heatmap, dynamic order blocks, and fair value gaps into a single, performance-optimized overlay.
**Free & Open Source** — no invite-only access, no paywall. Full source code, fully transparent.
## The Concept: Why Liquidity Matters
In institutional trading, **liquidity pools** form above swing highs and below swing lows — these are clusters of stop-loss orders from retail traders. Smart money targets these pools to fill large positions. Understanding where liquidity rests gives you an edge in anticipating price movements:
- **Swing High Liquidity** — Stop-losses from short sellers sit above swing highs
- **Swing Low Liquidity** — Stop-losses from long buyers sit below swing lows
- **Liquidity Sweeps** — When price takes out a swing level to grab these stops, it often reverses
The indicator automates the detection and visualization of these key levels.
## Core Features
### 1. Thermal Liquidity Heatmap
The signature feature. Liquidity zones appear at every confirmed swing high and swing low with a thermal color gradient:
- **Fresh zones** — Warm colors (orange/yellow) indicate high relevance
- **Aging zones** — Cool colors (purple/blue) indicate decreasing relevance as time passes
- **Volume-weighted intensity** — Zones formed on high-volume bars appear more intense
- **Auto-cleanup** — Zones fade out over a configurable decay period and are removed when price sweeps through them
### 2. Market Structure Detection (BOS & CHoCH)
Automatic swing high/low detection using pivot-based logic:
- **BOS (Break of Structure)** — Price breaks a prior swing level in the trend direction (continuation). Shown as dashed lines.
- **CHoCH (Change of Character)** — Price breaks a prior swing level against the trend (potential reversal). Shown as solid lines with thicker width.
- Color-coded: Cyan/Teal = bullish, Magenta/Pink = bearish
### 3. Dynamic Order Blocks
Institutional supply and demand zones rendered as semi-transparent boxes:
- **Bullish OB** — The last bearish candle before a strong bullish move (at swing lows)
- **Bearish OB** — The last bullish candle before a strong bearish move (at swing highs)
- Configurable mitigation threshold — controls how much price must penetrate the block before it is considered mitigated
- Auto-removed when price closes through the block
### 4. Fair Value Gaps (FVG)
Three-candle inefficiency detection:
- Bullish FVG: Gap between candle 1's low and candle 3's high
- Bearish FVG: Gap between candle 1's high and candle 3's low
- ATR-based noise filter removes insignificant gaps
- Auto-removed when price fills the gap
- Default: OFF (toggle on in settings)
### 5. Premium / Discount Zones
Based on the current swing range:
- **Premium Zone** (upper half) — Light red background
- **Discount Zone** (lower half) — Light green background
- **Equilibrium Line** (50%) — Dashed amber line
- Default: OFF (toggle on in settings)
## Dashboard
A compact, dark-themed info panel displaying:
- **Trend** — Current market direction (Bullish / Bearish / Neutral)
- **Structure** — Last detected structure signal (BOS or CHoCH)
- **Liq. Heat** — How many liquidity zones are near the current price (High / Medium / Low)
- **Volume** — Above or below 20-period average
- **Momentum** — RSI(14) status (Overbought / Neutral / Oversold)
- **Next Zone** — Nearest liquidity zone with price level and distance in percent
## Auto-Timeframe Adaptation
All parameters automatically adjust to your chart timeframe:
| Timeframe | Swing Lookback | Heatmap Decay |
|-----------|---------------|---------------|
| 1-5 min | 6 | 100 bars |
| 15 min | 10 | 80 bars |
| 30 min | 12 | 80 bars |
| 1 Hour | 15 | 60 bars |
| 4 Hour | 22 | 50 bars |
| Daily | 35 | 40 bars |
| Weekly+ | 50 | 30 bars |
You can switch to manual mode for full control.
## Alert Types (7)
1. Bullish BOS — Break of Structure confirmed (continuation up)
2. Bearish BOS — Break of Structure confirmed (continuation down)
3. Bullish CHoCH — Change of Character detected (potential reversal up)
4. Bearish CHoCH — Change of Character detected (potential reversal down)
5. Bullish Liquidity Sweep — Swing high liquidity taken
6. Bearish Liquidity Sweep — Swing low liquidity taken
7. Price Entering Order Block — Price enters a bullish or bearish OB zone
## Settings
**Market Structure:**
- Show BOS / CHoCH (on/off)
- Auto Swing Lookback (on/off)
- Manual Swing Lookback (3-100)
- BOS / CHoCH line styles and width
**Liquidity Heatmap:**
- Show Heatmap (on/off)
- Auto Decay Period (on/off)
- Manual Decay (10-500 bars)
- Zone Width (ATR multiplier)
- Volume-Weighted Intensity (on/off)
- Max Active Zones (4-20)
**Order Blocks:**
- Show Order Blocks (on/off)
- Max OBs per Side (1-6)
- Mitigation Threshold (0.0-1.0)
**Fair Value Gaps:**
- Show FVGs (on/off, default OFF)
- Min FVG Size (ATR multiplier)
- Max Active FVGs (2-15)
- FVG Extend (bars)
**Premium / Discount:**
- Show Zones (on/off, default OFF)
- Zone Transparency
**Dashboard:**
- Show Dashboard (on/off)
- Position (Top Right / Top Left / Bottom Right / Bottom Left)
- Size (Tiny / Small / Normal)
**Visual Settings:**
- All 5 colors fully customizable
- Watermark (on/off)
## Non-Repainting
All signals are calculated on confirmed (closed) bars only. Pivot detection inherently requires N bars of confirmation on each side. BOS/CHoCH signals fire on the bar where the break occurs, after the swing point is already confirmed. What you see is what happened — no hindsight bias.
## Works On
- Crypto (BTC, ETH, SOL, ...)
- Forex (EUR/USD, GBP/JPY, ...)
- Stocks (AAPL, TSLA, NVDA, ...)
- Futures & Indices (NQ, ES, SPX, ...)
- Any timeframe from 1 minute to Monthly
## Disclaimer
This indicator is for educational and informational purposes only. It does not constitute financial advice. Always do your own research and manage your risk. Past performance does not guarantee future results. Trading involves substantial risk of loss.
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