Liquidity Sentiment Profile (Auto-Anchored) [LuxAlgo]

Aug 28, 2023

The Liquidity Sentiment Profile (Auto-Anchored) is an advanced charting tool that measures by combining PRICE and VOLUME data over specified anchored periods and highlights the distribution of the liquidity and the market sentiment at specific price levels. This version is a variation of the previously published Liquidity Sentiment Profile, wherewith this version allows users to select a variety of different anchoring periods, such as 'Auto', 'Fixed Range', 'Swing High', 'Swing Low', 'Session', 'Day', 'Week', 'Month', 'Quarter', and 'Year'

Liquidity refers to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly.

🔶 USAGE



A Liquidity Sentiment Profile (Auto-Anchored) is a combination of liquidity and a sentiment profile, where the right side of the profile highlights the distribution of the traded activity at different price levels, and the left side of the profile highlights the market sentiment at those price levels

The liquidity profile is categorized by assigning different colors based on the significance of the traded activity of the specific price levels, allowing traders to reveal significant price levels, such as support and resistance levels, supply and demand zones, liquidity gaps, consolidation zones, etc



The Liquidity Sentiment Profiles aim to present Value Areas based on the significance of price levels, thus allowing users to identify value areas that can be formed more than once within the range of a single profile



Level of Significance Line - displays the changes in the price levels with the highest traded activity (developing POC)



Buyside & Sellside Liquidity Zones - displays Liquidity Levels, also known as Supply and Demand Zones




🔶 SETTINGS

The script takes into account user-defined parameters and plots the profiles, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.

🔹 Liquidity Sentiment Profile

• Anchor Period: The indicator resolution is set by the input of the Anchor Period.
  
• Fixed Period: Applicable if the Anchor Period is set to 'Fixed Range' then the period of the profile is defined with this option
  
• Swing Detection Length: Applicable if the Anchor Period is set to 'Swing High' or 'Swing Low' then the length required to detect the Swing Levels is defined with this option which is then used to determine the period of the profile
  

🔹 Liquidity Profile

• Liquidity Profile: Toggles the visibility of the Liquidity Profiles
  
• High Traded Nodes: Threshold and Color option for High Traded Nodes
  
• Average Traded Nodes: Color option for Average Traded Nodes
  
• Low Traded Nodes: Threshold and Color option for Low Traded Nodes
  

🔹 Sentiment Profile

• Sentiment Profile: Toggles the visibility of the Sentiment Profiles
  
• Bullish Nodes: Color option for Bullish Nodes
  
• Bearish Nodes: Color option for Bearish Nodes
  

🔹 Buyside & Sellside Liquidity Zones

• Buyside & Sellside Liquidity Zones: Toggles the visibility of the Liquidity Levels
  
• Buyside Liquidity Nodes: Color option for Buyside Liquidity Nodes
  
• Sellside Liquidity Nodes: Color option for Sellside Liquidity Nodes
  

🔹 Other Settings

• Level of Significance: Toggles the visibility of the Level of Significance Line
  
• Price Levels, Color: Toggles the visibility of the Profile Price Levels
  
• Number of Rows: Specify how many rows each profile histogram will have. Caution, having it set to high values will quickly hit Pine Script™ drawing objects limit and fewer historical profiles will be displayed
  
• Profile Width %: Alters the width of the rows in the histogram, relative to the profile length
  
• Profile Range Background Fill: Toggles the visibility of the Profiles Range
  

🔶 RELATED SCRIPTS

Liquidity-Sentiment-Profile
Buyside-Sellside-Liquidity
ICT-Concepts