Description
This indicator identifies liquidity zones and order blocks in the market, following concepts from Smart Money Market Theory (ICT/SMC).
https://ctrader.com/pt/products/1560
https://ctrader.com/pt/products/1386
The indicator operates in four main steps:
✅Order Block Identification
Detects impulsive movements (minimum 20 pips by default)
Finds consolidation zones before impulse
Classifies as a buy or sell block
✅Liquidity Pool Identification
Marks recent highs and lows as liquidity zones
These areas represent potential targets or stopping points
✅Retest Confirmation
Checks when the price returns to order blocks
Confirms with reversal patterns (Pin Bar/Engulfing) and volume
✅Chart Visualization
Draws order blocks and liquidity zones
Emits audible alerts upon confirmation
✅Configurable Parameters
LookbackPeriod: Number of candles to analyze (500 by default)
MinImpulsePips: Minimum size of the impulsive movement (20 pips)
MinVolumeThreshold: Minimum volume for confirmation (1.0)
Customizable colors for bullish/bearish blocks and liquidity zones
Sound alert option
✅Trading Logic
Bullish (buy) blocks:
Formed after consolidation and upward momentum
Potential support zone
Entry confirmed by reversal pattern + volume on retest
Bearish (sell) blocks:
Formed after consolidation and downward momentum
Potential resistance zone
Entry confirmed in the same way
✅Liquidity Pools:
Recent highs/lows as targets or stops
Areas where there is likely concentration of stop orders
Summary
Key features include:
- Order Block Identification: Detects bullish and bearish blocks formed after consolidation and momentum shifts, serving as potential support or resistance zones.
- Liquidity Pool Identification: Highlights recent highs and lows that may act as targets or stop areas due to stop order concentration.
- Retest Confirmation: Validates entries by checking price returns to order blocks combined with reversal candlestick patterns (Pin Bar, Engulfing) and volume thresholds.
- Chart Visualization: Draws order blocks and liquidity zones with customizable colors and provides sound alerts upon confirmation.
- Configurable parameters such as lookback period, minimum impulse size, and volume threshold allow adaptation to different trading preferences.
This indicator supports analysis of price action dynamics to assist traders in identifying key market levels and potential trade entry points.
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