Liquidity candleWhat it does
This indicator automatically identifies the first 15-minute candle of the US market session (9:30–9:45 AM New York time) and evaluates whether it qualifies as a liquidity candle by comparing its range against a percentage of the Daily ATR (Average True Range). By default, the candle is considered liquid if its range exceeds 25% of the daily ATR.
For every trading day in the chart history, it draws a colored rectangle directly on the candlestick chart spanning the exact high and low of that opening candle — green if liquid, red if not. A label displays the candle's range as a percentage of the daily ATR, and if liquid, indicates the expected trade direction (LONG or SHORT) based on the candle's close.
What it shows
✅ Green rectangle — The opening candle is liquid. Price moved enough to suggest institutional activity and a potential "touch and turn" reversal setup.
❌ Red rectangle — The opening candle lacks sufficient range. The session may be slow or directionless — no trade setup.
% of ATR — Tells you exactly how significant the opening move was relative to the average daily range.
Direction label — A bullish opening candle signals a potential SHORT reversal. A bearish opening candle signals a potential LONG reversal.
How to use it in a strategy
The core idea behind this indicator is the "Touch and Turn" scalping concept. Large opening candles often represent a liquidity sweep — smart money pushing price aggressively in one direction to collect orders before reversing. The indicator helps you:
Filter low-quality days — If the rectangle is red, skip the session entirely. No liquidity means no clean setup.
Identify your bias — A green rectangle with a SHORT label means you are looking to sell when price returns to the high of the opening candle. A LONG label means you buy a retest of the low.
Plan your entry — Wait for price to retrace back into the rectangle zone after 9:45 AM. The high or low of the rectangle acts as your entry trigger.
Set your targets — Use the Fibonacci 38.2% level drawn from the opening candle range to place your take profit, with a stop loss at a 2:1 risk-to-reward ratio beyond your entry.
Build confluence — Combine this indicator with your existing tools (RSI, MACD, EMAs) visible on your chart. A liquid opening candle aligned with an overbought RSI or a bearish MACD cross strengthens the SHORT signal significantly.
Indicador Pine Script®






















