Liquidity Sentiment Profile [LuxAlgo]

27 jun 2023

The Liquidity Sentiment Profile is an advanced charting tool that measures by combining PRICE and VOLUME data over specified anchored periods and highlights within a sequence of profiles the distribution of the liquidity and the market sentiment at specific price levels.

The Liquidity Sentiment Profile allows traders to reveal significant price levels, dominant market sentiment, support and resistance levels, supply and demand zones, liquidity availability levels, liquidity gaps, consolidation zones, and more based on price and volume data.

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

🔶 USAGE



A Liquidity Sentiment Profile is a combination of a liquidity and a sentiment profile, where the right part of the profile displays the distribution of the traded activity at different price levels and the left part displays the market sentiment at those price levels.

The Liquidity Sentiment Profiles are visualized with different colors, where each color has a different meaning.





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)





🔶 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 Profiles

• Anchor Period: The indicator resolution is set by the input of the Anchor Period, the default option is AUTO.
  

🔹 Liquidity Profile Settings

• 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 Settings

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

🔹 Other Settings

• Level of Significance: Toggles the visibility of the Level of Significance Line
  
• Profile Price Levels: 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
  

🔶 LIMITATIONS

The amount of drawing objects that can be used is limited, as such using a high number of rows can display fewer historical profiles and occasionally incomplete profiles.

🔶 RELATED SCRIPTS

🔹 Buyside-Sellside-Liquidity
🔹 ICT-Concepts
🔹 Swing-Volume-Profiles