Smart Liquidity Void

1. What is Smart Liquidity Void indicator?

The Smart Liquidity Void indicator aims to identify significant price movements that occur with relatively low liquidity, which are referred to as "liquidity voids." These voids are important for traders because they often indicate potential areas where the price might accelerate or reverse, due to the lack of substantial opposition to the prevailing price movement.

Here are some key features and functionalities typically associated with such an indicator, based on the description provided:

Detection of Liquidity Voids: The indicator scans the markets to identify zones where liquidity is low, and significant price movements have occurred or are likely to occur. These areas are where the market has moved quickly due to a lack of orders at certain price levels.

Price Acceleration Zones: By identifying these liquidity voids, the indicator suggests where the price might move rapidly. This is because in areas of low liquidity, it takes less volume to move the price, potentially leading to swift price changes.

Potential Reversal Points: Liquidity voids can also indicate potential reversal points. When the price enters a void, it may either accelerate through it or reverse due to the emergence of new orders that fill the void.

Visual Representation: The Smart Liquidity Void indicator likely provides visual cues on the chart, such as highlighted areas or markers, to indicate the presence of liquidity voids. This makes it easier for traders to spot these zones at a glance.

Trading Strategy Integration: Traders can use the information provided by the Smart Liquidity Void indicator to tailor their trading strategies, whether they're looking for breakout opportunities, potential reversal points, or areas to set stop-loss or take-profit orders.

Customization Options: Such indicators often come with various settings that can be customized to fit the trader's specific needs, such as adjusting the sensitivity of the liquidity detection or highlighting specific types of voids.

It's important to note that while the Smart Liquidity Void indicator provides valuable insights, traders should use it as part of a comprehensive trading strategy that includes other forms of analysis, such as technical, fundamental, and sentiment analysis, to make informed trading decisions.

2. Indicator settings:

Candles count to confirm liquidity void: choose the numbers of candles to be used in checking for a liquidity void.

ATR period: the specific time frame used in the ATR calculation to determine the height of a zone, like a support or resistance zone. 

ATR coefficient: a factor applied to the ATR to determine the size of zones, such as support or resistance zones. 

ATR period for SL shift: the timeframe used to calculate the Average True Range for adjusting stop loss levels.

SL shift coefficient: a multiplier used with the ATR value to adjust stop loss levels according to market volatility.

TP coefficient (from SL): a multiplier determining the Take Profit level relative to the Stop Loss distance.

Various Color settings: customize these colors to differentiate between bullish/bearish patterns and arrows, and TP/SL.

Max bars back: the maximum count of past candlesticks considered by the indicator for its analysis.

3. Alert set-up:

To stay updated on potential trading opportunities, you can set up alerts within the Smart Liquidity Void indicator settings.

Step 1: From the indicator settings, customize your alerts by defining your desired parameters for buy and sell signals. The selected configurations will be used for notifications in Step 2.

Step 2: To receive notifications through the app, pop-ups, alert emails, Webhook URL, sound alerts, or email-to-SMS, enable these features by clicking on TradingView's Alert icon. 

Step 3: Select Smart Liquidity Void from the “Condition” dropdown list 

Step 4: A pop-up will appear as follows. Click on “Notifications”. 

Step 5: Choose the types of notifications you'd like to receive, and click the “Create” button.