BSL & SSL - Liquidity Zones

BSL & SSL - Liquidity Zones
Indicator Description (for TradingView)
Concept
The BSL & SSL - Liquidity Zones indicator is a simple yet powerful visual tool that helps traders identify key liquidity zones in the market by tracking prominent highs and lows on the chart.
It is based on the concept that the Highest High (Buy Side Liquidity - BSL) and Lowest Low (Sell Side Liquidity - SSL) represent zones where stop-loss orders and pending orders accumulate — often attracting future price movements.

Purpose
This indicator helps traders spot hidden liquidity levels which may act as targets or potential reversal points. It is especially useful for traders who apply Smart Money Concepts (SMC) or institutional trading models.
Great for detecting potential stop hunts and understanding market structure shifts.

How It Works

The indicator calculates the Highest High and Lowest Low over a user-defined period (default: 20 candles).

When a new Higher High forms, it marks a new BSL.

When a new Lower Low forms, it marks a new SSL.

These zones are likely to attract price in the future — either as targets or traps.

Visualization

The indicator draws static horizontal lines (Stepline style) at BSL and SSL levels.

These lines remain in place until broken or a new level is formed.

Visual Labels enhance clarity:
🟢 Green Label → BSL
🔴 Red Label → SSL

Trading Insights / Practical Use
When price approaches a BSL or SSL zone, ask yourself:

✅ Will price break the level to grab liquidity?
✅ Will there be a reversal after liquidity is taken?

The indicator does not provide signals by itself — it serves as a valuable confirmation tool when combined with:

Price Action

Support & Resistance

Momentum Indicators

SMC Tools

Key Benefits
✅ Easy to use
✅ Enhances liquidity analysis
✅ Highlights zones targeted by institutional players
✅ Simple calculation — no complex formulas

Limitations
🚫 Does NOT generate buy/sell signals
🚫 Should be used as part of a complete trading framework

Conclusion
BSL & SSL - Liquidity Zones is a versatile and intuitive tool for any trader looking to better understand where liquidity is positioned on the chart.
It works across all timeframes and complements any trading strategy, especially Smart Money-based approaches.