Advanced Liquidity Fibonacci Zones - Ace of Trades

Advanced Liquidity Fibonacci Zones – Ace of Trades Theory

How to Use This Script:

This advanced indicator visualizes key "liquidity zones" based on custom Fibonacci levels, reflecting the real areas where market makers, institutions, and advanced algorithms manage risk—far beyond basic retail “golden ratio” retracements. Unlike traditional tools, these zones align with the market maker theory popularized by Ace of Trades (@acethebully on X).

How to Paint the Highs and Lows

Select the Indicator ("Advanced Liquidity Fibonacci Zones – Ace of Trades Theory") and add it to your chart.

Use the two input fields to manually mark your key swing points:

Click the “Swing Low (0.0 Level)” input, then select a price bar on your chart for the swing low.

Click the “Swing High (1.0 Level)” input, then select the bar for your swing high.

These anchors will paint the exact price range that all fib zones are projected between.

The script will automatically draw all major liquidity/retracement/extension zones as colored bands or boxes across your chart, extended into the future for clear reference.

What Do the Zones Mean?

Zones are based on Ace of Trades' market maker theory. They're not just “lines”—they show where professional liquidity providers, algorithms, and institutional traders strategically rebalance, accumulate, or distribute.

Each zone is labeled with its precise fib ratio and price, with zone descriptions acknowledging their theoretical function (e.g., Golden Band, Momentum Pullback, Stop-Hunt Extension, Blow-Off Range, etc).

Best Practices

Use the script to identify areas where liquidity is expected to pool (for reaction or continuation), rather than just following retail golden ratios.

Paint your swing highs/lows cleanly—from the local low before an impulse, to the most relevant high after a move (or vice versa for down moves).

Observe how price reacts at these boundaries and plan entries/exits accordingly.

Special thanks and all intellectual credit to Ace of Trades (@acethebully on X) for his public education and original market maker insights.
This tool was developed to fully honor and operationalize the liquidity geometry theory from his work.