Liquidity Pocket

Liquidity Pocket Indicator
This indicator identifies and tracks institutional liquidity zones through pivot-based support and resistance analysis, providing visual confirmation when price returns to test these critical levels.
Core Functionality:

Dynamic Pivot Detection: Automatically identifies swing highs and lows using customizable lookback parameters
Multi-Timeframe Analysis: Option to analyze pivots from higher timeframes while displaying on current chart
Liquidity Line Tracking: Draws horizontal lines from pivot points that extend until price interference occurs
Sweep Confirmation: Generates signals when price returns to test previously established pivot levels

Key Features:

Adaptive Timeframe Selection: Choose specific timeframes or use automatic multiplier system (Lvl1-Lvl4) for systematic higher timeframe analysis
Dynamic Line Management: Automatically manages active lines with performance optimization through maximum line limits
Visual Confirmation System: Customizable display options including line styles, candle coloring, and liquidity sweep signals
ATR-Based Signal Positioning: Intelligent signal placement using Average True Range calculations for optimal visibility

Signal Logic:
The indicator monitors when price returns to previously established pivot levels, interpreting these interactions as liquidity sweeps or institutional order execution zones. Signals trigger upon contact with tracked levels, providing confirmation of institutional interest areas.
Customization Options:

Adjustable pivot sensitivity through left/right bar lookback settings
Comprehensive visual customization including colors, line styles, and signal symbols
Performance controls with maximum active line limits
Alert system for real-time liquidity event notifications

This tool excels at identifying where institutional players may have placed orders, making it valuable for understanding market structure and potential reversal zones.