Liquidity Sweep Detector

Liquidity Sweep Detector – Detailed Description and Installation Guide

Overview
Liquidity Sweep Detector is a powerful and versatile technical indicator designed to help traders identify stop hunts and liquidity grabs across any financial instrument and timeframe. Stop hunts occur when price temporarily breaches key swing highs or lows, triggering stop-loss orders from retail traders, before reversing direction. By visually highlighting these events, this indicator allows traders to better understand market dynamics, anticipate potential reversals, and recognize areas of liquidity accumulation that may signal significant market moves.

How It Works
The indicator continuously scans price swings over a configurable number of bars to detect significant market movements, such as temporary breaches of swing highs and lows. It distinguishes between bullish and bearish sweeps by analyzing both the wicks and candle body size to ensure only meaningful liquidity sweeps are marked.

• Bullish Sweep: Occurs when price dips below a recent swing low but then closes back above it, signaling a potential buying opportunity.

• Bearish Sweep: Occurs when price spikes above a recent swing high but then closes below it, signaling a potential selling opportunity.

• Optional Sweep Zones: Highlights areas where liquidity sweeps are likely, allowing traders to visually analyze potential zones of stop-hunting activity.

The indicator uses a combination of wick length and body size percentage to filter out minor price fluctuations, ensuring that only significant sweeps are highlighted on the chart.

Signals / Visual Indicators

• Green Arrow (up): Bullish sweep detected

• Red Arrow (down): Bearish sweep detected

• Yellow Circle: Swing high liquidity zone

• Orange Circle: Swing low liquidity zone

Traders can use these signals to:

• Identify areas of stop-loss accumulation

• Spot potential market reversals

• Analyze liquidity zones for better trade entries and exits

Use Cases / Suitable Chart Types

• Works on all symbols: Forex, Commodities, Indices, Cryptocurrency

• Compatible with all timeframes: From M1 to MN

• Ideal for traders looking to analyze market structure, detect stop-hunting patterns, and anticipate liquidity-driven price movements

Installation Guide

1. Download the File: Ensure you have the .ex5 file for the Liquidity Sweep Detector.

2. Open MetaTrader 5: Launch your MT5 platform.

3. Open Data Folder: Go to File → Open Data Folder in MT5.

4. Locate Indicators Folder: Navigate to MQL5 → Indicators .

5. Copy File: Place the .ex5 file into the Indicators folder.

6. Restart MT5: Close and reopen MT5 to refresh the indicator list.

7. Attach to Chart: Open your desired chart, then drag the Liquidity Sweep Detector from the Navigator → Indicators panel onto the chart.

8. Configure Inputs: Adjust the input parameters (e.g., InpSwingBars, InpLookbackSwings, etc.) according to your trading preferences.