[ICT Sebo] Liquidity Sweeps

Overview

This indicator identifies and tracks liquidity sweep levels derived from pivot highs and pivot lows. It highlights areas where price is likely to interact with resting liquidity and marks the moment when those levels are traded.

The script is designed as a contextual liquidity visualization tool and does not generate trade signals.

How it works

Liquidity levels are generated from confirmed pivot highs and pivot lows using a configurable lookback length. Each pivot is evaluated using a volume-normalized activity filter to reduce low-quality or insignificant levels.

Only pivots formed during relatively elevated activity are accepted. The indicator optionally adjusts zone distance using volatility measures to better reflect current market conditions.

Once a valid pivot is detected, a horizontal liquidity level and an associated zone are projected forward until price trades through the level.

Liquidity sweep detection

When price trades through a liquidity level, the indicator marks the event directly on the chart and updates the visual state of the level. The affected level switches to a dashed style and is removed from active tracking to avoid repeated signals.

An optional real-time alert is triggered at the moment the liquidity level is claimed.

Visualization and behavior

Liquidity zones adapt their visual intensity based on relative market activity. Only a limited number of the most recent liquidity zones are retained to maintain chart clarity.

A temporary background highlight reflects the most recent liquidity sweep direction, providing immediate visual context.

The indicator focuses on forward-tracking price interaction and does not repaint previously confirmed levels.

Intended use

This tool supports liquidity-based market structure analysis, stop-run observation and contextual price interpretation. It is suitable for intraday and short-term analysis and should be used in combination with broader market context and risk management.

Notes

This indicator does not predict price direction, does not provide entry or exit signals and is intended purely as a visual and analytical reference.