Liquidity Zones - Joe v1

This script lets you plot liquidity/order levels (similar to what you see on Bookmap) directly on your TradingView chart.

It is designed to help traders spot support/resistance levels where large limit orders sit and to visualize whether those liquidity pools are still active, already taken, or being replenished.


Key Features

Session-based

• Works during a defined trading session.
  
• Resets automatically at the first bar of the session.
  

Up to 8 Liquidity Zones, each of which includes:

• Price level
  
• Size (affects line thickness)
  
• Status (Active, Taken, Re-Stocking, or Automatic).
  

Zone Statuses

• Active → Untouched liquidity (potential support/resistance).
  
• Taken → Liquidity consumed after price trades through it.
  
• Re-Stocking → Level is being reloaded with fresh orders.
  
• Automatic → Updates dynamically (switches to Taken when crossed, otherwise stays Active).
  

Visual Representation

• Zones are drawn as horizontal lines.
  
• Labels show price + size (e.g., 4010 (200k)).
  

Customizable line styles and colors:

• Active = solid red
  
• Taken = gray dashed
  
• Re-Stocking = purple dotted
  

Dynamic Updates

• Levels automatically update during the session.
  
• If price crosses a zone → it’s marked as Taken.
  
• Labels, line styles, and colors adjust live.
  
• Line thickness = zone size ÷ 10 → visually represents liquidity strength.
  

How this indicator is Used

Upon market open, the order book tends to fill with limit orders. Using Bookmap, you can see where these orders are placed at each relative price point, along with their sizes. The most important ones to focus on are the larger levels, which are typically highlighted in reddish tones (depending on your Bookmap settings).

I then manually enter these levels into this indicator. It only takes a few seconds, and since there’s no direct way to connect TradingView to Bookmap, this method works as an effective workaround. Once entered, the levels will stay visible on your TradingView chart.

This seemingly simple script is very powerful and provides a strong edge. More often than not, price action gravitates toward these larger liquidity levels. Remember, the price of a security is influenced by market makers whose role is to fill orders and earn commissions on transactions. They have little interest in arbitrarily pushing price higher or lower; instead, their primary function is to guide price toward liquidity—where the large orders sit.

Of course, this is a general principle, and many other variables can affect price movement. Still, by keeping this concept in mind, you’ll often find yourself on the right side of the market.