Liquidity Entry Triggers (4-Model System) | WarRoomXYZ

Liquidity Entry Triggers is an open-source, price-action-based analytical framework designed to highlight recurring institutional liquidity behaviors that appear across all liquid markets.

The script focuses on how and where liquidity is taken, rather than attempting to predict direction using oscillators or lagging indicators.
It is optimized for XAUUSD, FX pairs, indices, and crypto, particularly on 1m–15m timeframes where session behavior and liquidity reactions are most visible.

This tool is not a buy/sell signal generator.
It provides contextual entry zones based on structural liquidity logic, allowing traders to apply their own execution rules.

Core Philosophy
Markets move because of:
•Trapped traders
•Forced liquidations
•Session-based liquidity cycles
•Reactions at prior institutional participation zones
This script visualizes four repeatable entry triggers that emerge from those mechanisms.

🔹 1. Failed Breakout / Trapped Trader Model
When price breaks a clearly defined range high or low, breakout traders often enter expecting continuation.
If price fails to hold outside the range and closes back inside, those traders become trapped.
The script detects:
•Breaks beyond recent highs/lows
•Immediate rejection back into the range
•Structural failure of momentum
These conditions frequently lead to mean reversion or reversal moves as trapped traders exit and fuel movement in the opposite direction.
Markers are plotted at the point of failure to highlight potential trap zones.

🔹 2. Liquidation Flush Detection
Sharp impulsive candles with abnormally large wicks often represent liquidation cascades rather than healthy trend continuation.
The script identifies liquidation behavior by measuring:
•Wick-to-body imbalance
•Sudden expansion followed by rejection
•Temporary price inefficiencies

These flushes commonly occur near:
•Session highs/lows
•Range extremes
•Trend exhaustion points
Such events often lead to rebalance moves, where price partially or fully fills the wick.

🔹 3. Orderblock Reaction Zones
Orderblocks represent areas where heavy participation occurred before a strong displacement move.
The script highlights:
•Clean bullish and bearish orderblock structures
•Zones formed during consolidation prior to expansion
•Areas likely to be defended when revisited
Orderblocks with minimal noise and clean departure are prioritized, as they often reflect institutional positioning rather than retail activity.
These zones are intended as reaction areas, not automatic entry signals.

🔹 4. London Session Liquidity Sweep Model
The London session frequently establishes the initial daily high or low.

Later in the session or during New York, price often:
•Sweeps internal liquidity around that level
•Rejects after the sweep
•Continues with the higher-timeframe bias

The script monitors London session behavior and marks:
•Liquidity runs above/below London highs and lows
•Rejections back inside the prior structure
This model is especially effective when combined with broader daily context.

🔹4. How the Components Work Together
The framework is designed as a context stack, not a checklist of signals:

Liquidity Event → Location → Timing → Trader Execution

Each model reinforces the others:
•Failed breakouts often occur after liquidity sweeps
•Liquidation wicks frequently form near orderblocks
•London sweeps often trigger failed momentum moves
•Confluence increases probability, not certainty

🔹 Practical Usage Guide

✔ Identify context
Determine whether price is approaching a range extreme, session level, or prior participation zone.

✔ Wait for a liquidity event
Look for a sweep, failed breakout, or liquidation wick.

✔ Observe reaction
Rejection, displacement, or reclaim behavior provides confirmation.

✔ Execute manually
Stops are commonly placed beyond the liquidity extreme.
Targets are typically internal liquidity, prior highs/lows, or imbalance zones.

The indicator does not manage trades or enforce rules.
Execution and risk management remain the trader’s responsibility.

🔹 5. Originality & Design Notes
This script does not replicate or bundle existing indicators.
It introduces:
•A multi-model liquidity entry framework
•Structural failed breakout detection
•Wick-based liquidation imbalance logic
•Session-aware liquidity sweep visualization
•A unified, minimal, non-lagging design
All concepts are based on observable market behavior and integrated into a single analytical tool.

🔹 6. Suitable Markets & Timeframes
Works best on:
•XAUUSD
•Major FX pairs
•Indices
•Liquid crypto markets

Recommended timeframes:
•1m
•5m
•15m
•30m

🔹7. Limitations & Notes
•This is an analytical framework, not a trading system
•All markings are confirmed at candle close (non-repainting)
•No open interest or order flow data is used
•Results depend on user interpretation and execution
•Best used alongside session bias and higher-timeframe structure

Disclaimer

This script is provided for educational and informational purposes only.
It does not constitute financial advice, investment advice, or a recommendation to buy or sell any instrument.

Trading involves risk, and losses can exceed initial deposits.
The author assumes no responsibility for trading decisions made using this tool.

Users are strongly encouraged to test this script in demo or simulation environments and to apply proper risk management, position sizing, and personal discretion at all times.

By using this script, you acknowledge and accept all associated risks.