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Liquidity Pressure Index is a professional‑grade tool designed to give traders a deeper look into the hidden dynamics of market liquidity. Unlike traditional oscillators that only react to price, Liquidity Pressure Index blends tick volume, volatility compression, and directional flow into a single, easy‑to‑read line. This makes it a powerful companion for traders who want to understand whether buying or selling pressure is truly dominating behind the candles.
At its core, ALB calculates the balance between accumulated buy liquidity and accumulated sell liquidity, normalizing the result against rolling tick volume. The output is centered around the neutral level of 50. Values above 50 indicate stronger buying liquidity, while values below 50 highlight stronger selling liquidity.
This simple visual cue allows traders to instantly gauge the underlying order flow without needing to interpret multiple indicators at once.
How to Read the Indicator
Line above 50: Market shows stronger buy‑side liquidity. This often supports bullish continuation or signals hidden demand absorbing sell orders.
Line below 50 : Market shows stronger sell‑side liquidity. This often supports bearish continuation or signals hidden supply absorbing buy orders.
Flat or near 50: Liquidity is balanced, suggesting indecision or consolidation.
Smoothing options: Traders can choose between EMA or KAMA smoothing to reduce noise and focus on the dominant liquidity trend.
How It Works
The indicator first measures true range volatility (ATR) and compares it with the actual candle range to estimate compression. It then combines this with tick volume to separate pending liquidity (orders waiting in the book) from executed liquidity (orders already filled). Depending on candle direction, the algorithm allocates hidden buy or sell absorption. Finally, the result is normalized against a rolling EMA of tick volume, scaled, and smoothed for clarity.
The outcome is a dynamic liquidity index that adapts to market conditions and reveals the tug‑of‑war between buyers and sellers in real time.
Key Features
Liquidity‑Focused Insight: Goes beyond price to reveal hidden buy/sell pressure.
Adaptive Smoothing: Choose between EMA or KAMA for noise reduction.
Customizable Parameters: Control ATR period, smoothing length, scale, and line thickness.
Optimized Performance: Lightweight design with segment limits to ensure smooth charting.
Why Use Liquidity Pressure Index?
In fast‑moving markets, price alone can be misleading. The Advanced Liquidity Balance equips traders with a deeper perspective, showing whether the market is truly supported by liquidity or if moves are running on weak participation. Whether you are a scalper looking for short‑term imbalances or a swing trader confirming trend strength, Liquidity Pressure Index provides a professional‑grade liquidity lens—and best of all, it’s completely free.
Download it today and add a new dimension of clarity to your trading decisions.