AI Liquidity

Overview

The AI Liquidity indicator identifies and visualizes key liquidity highs and lows derived from a higher timeframe (HTF) and projects them as horizontal reference levels onto the active chart.
Its primary purpose is to observe liquidity interactions, especially when price touches or trades through existing high or low levels.
The indicator is designed as a liquidity and market-structure reference tool and does not generate trade, entry, or exit signals.

How it works

The indicator aggregates candles from a selected higher timeframe (HTF) and evaluates consecutive HTF candles to determine structurally relevant highs and lows.
These liquidity levels are:
plotted as horizontal lines
extended forward in time
accompanied by dynamic labels showing how long the level has been active
Optional visual references of the originating HTF candles can be displayed to provide additional structural context.

Liquidity sweep logic

The indicator monitors when price touches or trades through an active liquidity level.
When this occurs, the level is classified as a liquidity sweep and its visual state is updated accordingly (e.g. dashed styling and markers).
Swept levels are automatically removed after a defined number of bars to keep the chart clean and focused on relevant structures.

Session filter

Liquidity interactions and background highlights can be restricted to a predefined trading session, ensuring that visual emphasis and alerts are only active during the intended time window.

Visualization

Horizontal lines for liquidity highs and lows
Dynamic labels indicating time since level creation
Dashed styling after liquidity interaction
Optional HTF reference candle visualization
Subtle background highlighting following the most recent liquidity event
All elements are intended purely as visual and analytical references.

Alerts

Optional alerts may trigger when:
a liquidity high is swept
a liquidity low is swept
Alerts are designed to trigger in a controlled manner to avoid duplicate notifications.

Intended use

This tool supports:
Liquidity-based market analysis
Higher-timeframe structure evaluation
Intraday and swing context when combined with broader market analysis
It should be used alongside proper risk management and additional confirmation tools.

Notes

This indicator:
does not predict price direction
does not provide trade or entry signals
is intended purely as a visual and analytical reference tool