Liquidation/Doji Candles

Liquidation/Doji Candles

This indicator highlights candles with a body length smaller than 30% of the candle’s total range. These candles are displayed in orange, representing potential liquidation points or doji candles.

The idea behind this tool is to help traders spot moments of market indecision, where buying and selling pressure are in balance. Such conditions often hint at institutional liquidation events or possible retail-driven reversals.

You can fully customize the detection sensitivity by adjusting the percentage input. This allows you to tighten or loosen the condition depending on your trading style and market preference.

To support passive traders, the script also includes built-in alerts for:

• The formation of a new liquidation/doji candle.

• A close above its high (bullish engulfment).

• A close below its low (bearish engulfment).

These alerts make it easier to stay on top of potential market shifts without needing to constantly monitor the charts.