Liquidity is where the market breathes. The Liquidity Zones indicator by BigBeluga helps traders visualize where large players may be hiding orders—revealing the zones where price is most likely to react, reverse, or accelerate.
Let’s break down how this tool works, how we use it at Xuantify, and how you can integrate it into your own strategy.
🔍 What Is the Liquidity Zones Indicator?
This open-source tool identifies pivot highs and lows filtered by volume strength and plots them as liquidity zones—highlighting areas where buy/sell orders are likely to accumulate.
Key Features:
These zones act as magnets for price, helping traders anticipate where reactions, reversals, or stop hunts may occur.
🧠 How We Use It at Xuantify
We use Liquidity Zones as a contextual map for structure and execution.
1. Entry & Exit Planning
We align entries near untested liquidity zones and use them as targets for exits—especially when confirmed by structure or momentum.
2. Liquidity Grab Detection
When price pierces a zone and reverses, it often signals a liquidity sweep. We use this as a trigger for reversal setups.
3. Volume Context
Zones with higher volume intensity are prioritized. These are more likely to attract institutional activity and generate stronger reactions.
🧭 Dynamic vs. Static Zones
The indicator offers both dynamic and static zone modes:
Dynamic: Box height adjusts based on normalized volume, showing how much liquidity is likely present.
Static: Consistent box size for cleaner visuals and easier backtesting.
Why this matters:
⚙️ Settings That Matter
To get the most out of this tool, we recommend:
Volume Strength = Mid or High for cleaner zones
Enable Dynamic Mode when trading volatile assets
Use Color Intensity to quickly spot high-liquidity areas
🔗 Best Combinations with This Indicator
We pair Liquidity Zones with:
This layered approach helps us trade into liquidity, not against it.
⚠️ What to Watch Out For
Liquidity zones are not signals—they’re context. In fast-moving or low-volume markets, price may ignore zones or overshoot them. Always combine with structure and confirmation.
🔁 Repainting Behavior
The Liquidity Zones indicator is designed to be non-repainting. However, due to waiting for pivot confirmation, the zones are plotted in hindsight. This makes it suitable for real-time execution.
⏳ Lagging or Leading?
This tool is partially lagging—it waits for pivot confirmation and volume validation before plotting a zone. However, once plotted, these zones often act as leading levels, helping traders anticipate where price may react next.
🚀 Final Thoughts
The Liquidity Zones indicator by BigBeluga is a powerful visual tool for traders who want to understand where the market is likely to move—not just where it’s been. Whether you’re trading reversals, breakouts, or mean reversion, this tool helps you stay aligned with the market’s hidden intent.
Add it to your chart, test it, and see how it sharpens your edge.
Let’s break down how this tool works, how we use it at Xuantify, and how you can integrate it into your own strategy.
🔍 What Is the Liquidity Zones Indicator?
This open-source tool identifies pivot highs and lows filtered by volume strength and plots them as liquidity zones—highlighting areas where buy/sell orders are likely to accumulate.
Key Features:
- Volume-filtered pivot detection (Low, Mid, High)
- Dynamic or static liquidity zone boxes
- Color intensity based on volume strength
- Liquidity grab detection with visual cues
These zones act as magnets for price, helping traders anticipate where reactions, reversals, or stop hunts may occur.
🧠 How We Use It at Xuantify
We use Liquidity Zones as a contextual map for structure and execution.
1. Entry & Exit Planning
We align entries near untested liquidity zones and use them as targets for exits—especially when confirmed by structure or momentum.
2. Liquidity Grab Detection
When price pierces a zone and reverses, it often signals a liquidity sweep. We use this as a trigger for reversal setups.
3. Volume Context
Zones with higher volume intensity are prioritized. These are more likely to attract institutional activity and generate stronger reactions.
🧭 Dynamic vs. Static Zones
The indicator offers both dynamic and static zone modes:
Dynamic: Box height adjusts based on normalized volume, showing how much liquidity is likely present.
Static: Consistent box size for cleaner visuals and easier backtesting.
Why this matters:
- Dynamic zones reflect real-time volume strength
- Static zones offer simplicity and clarity
- Both modes help visualize where price is likely to “grab” liquidity
⚙️ Settings That Matter
To get the most out of this tool, we recommend:
Volume Strength = Mid or High for cleaner zones
Enable Dynamic Mode when trading volatile assets
Use Color Intensity to quickly spot high-liquidity areas
🔗 Best Combinations with This Indicator
We pair Liquidity Zones with:
- Market Structure Tools – BOS/CHOCH for context
- Momentum Indicators – Like RSI or MACD for confirmation
- Fair Value Gaps (FVGs) – For precision entries near liquidity
This layered approach helps us trade into liquidity, not against it.
⚠️ What to Watch Out For
Liquidity zones are not signals—they’re context. In fast-moving or low-volume markets, price may ignore zones or overshoot them. Always combine with structure and confirmation.
🔁 Repainting Behavior
The Liquidity Zones indicator is designed to be non-repainting. However, due to waiting for pivot confirmation, the zones are plotted in hindsight. This makes it suitable for real-time execution.
⏳ Lagging or Leading?
This tool is partially lagging—it waits for pivot confirmation and volume validation before plotting a zone. However, once plotted, these zones often act as leading levels, helping traders anticipate where price may react next.
🚀 Final Thoughts
The Liquidity Zones indicator by BigBeluga is a powerful visual tool for traders who want to understand where the market is likely to move—not just where it’s been. Whether you’re trading reversals, breakouts, or mean reversion, this tool helps you stay aligned with the market’s hidden intent.
Add it to your chart, test it, and see how it sharpens your edge.
Precision-driven insights for serious and casual traders. Xuantify combines proven indicators with custom enhancements to deliver clarity, confidence and an edge in any market. Blending simplicity with smart, strategic design.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Precision-driven insights for serious and casual traders. Xuantify combines proven indicators with custom enhancements to deliver clarity, confidence and an edge in any market. Blending simplicity with smart, strategic design.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.