Liquidity Levels

Liquidity levels mark the price areas where stop losses from retail traders are clustered. Institutional traders need large amounts of liquidity to fill their orders, so they actively drive price toward these stop clusters before reversing — a process commonly referred to as a liquidity sweep or stop hunt.

What it shows:

• BSL (Buy-Side Liquidity) — marked above swing highs, where traders who are short have placed their stop losses and where pending buy orders accumulate

• SSL (Sell-Side Liquidity) — marked below swing lows, where traders who are long have placed their stop losses and where pending sell orders accumulate

• Both levels are derived from significant pivot points, ensuring only meaningful liquidity pools are displayed

How to use it:

• Pivot Length controls how significant a swing needs to be to qualify as a liquidity level — higher values produce fewer but more meaningful levels, while lower values show more granular liquidity clusters

• Max Levels limits the number of levels displayed simultaneously, helping you focus on the most recent and relevant pools

• The Mitigated setting lets you choose whether swept levels are removed from the chart or kept visible as reference — keeping them visible can be useful to see the pattern of where price has already swept

• Method determines what constitutes a sweep — Close is stricter and only registers a sweep when price closes through the level, while Wick registers any penetration including wicks

• Display as Lines for a clean minimal look or Boxes to better visualize the zone width around each level

• Extend projects levels forward in time so they remain visible as the chart builds

Pro tip: When price sweeps a liquidity level then reverses with high volume, thats a great confluence for any strategy