Delta Magnet Zone Lite

Delta Magnet Zone Lite is exactly what it sounds like. It is areas where price cold potentially act as a magnet zone for price. Delta Magnet Zone Lite is a lightweight yet powerful visual tool that highlights potential liquidity traps and high-probability reversal zones based on volume spikes and wick imbalances. Designed for precision traders, this indicator visually marks key “magnet” zones where price may react, reverse, or consolidate due to prior aggressive buying or selling activity.

🔹 Core Logic:
Volume Spike Detection
Identifies candles with significantly higher volume than the moving average (customizable). These are likely areas of institutional interest or stop-hunt events.

Wick Ratio Analysis
Measures the size of the upper or lower wick relative to the total candle range. When combined with volume spikes, this helps detect:

Bullish Traps: Large lower wicks with strong buying volume

Bearish Traps: Large upper wicks with strong selling volume

Smart Zone Marking
When trap conditions are met, the script draws a semi-transparent colored box (green for bullish, red for bearish) that extends forward in time, highlighting a magnet zone—a price area likely to be retested or respected by future price action.

🛠 Customization Options:
Volume Spike Threshold
Adjust the multiplier for defining what qualifies as "high volume" relative to the average.

Wick Ratio Sensitivity
Fine-tune how extreme the wick size must be to qualify as a trap.

Zone Lifetime (Lookback)
Control how many bars each zone remains active on the chart.

Toggle Visibility
Turn bullish or bearish zones on/off independently for clean charting.

Ideal Use Cases:

Spotting hidden liquidity zones

Identifying exhaustion points in fast markets

Tracking institutional order imbalances

Enhancing confirmation for entry/exit signals

Whether you're trading intraday breakouts or swing-level reversals, Delta Magnet Zone Lite brings clarity to key reaction levels derived from raw price and volume behavior.