📌 Step 1: Identify Liquidity Zones The script plots high-liquidity zones (red) and low-liquidity zones (green). These are areas where big players target stop-losses before reversing the price. Example: If price is near a red liquidity zone, expect a potential stop-loss hunt & reversal downward. If price is near a green liquidity zone, expect a potential stop-loss hunt & reversal upward. 📌 Step 2: Watch for Stop-Loss Hunts (Fakeouts) The indicator marks stop-loss hunts with red (bearish) or green (bullish) arrows. When do stop-loss hunts occur? ✅ A long wick below support (with high volume) = Stop hunt before reversal upward. ✅ A long wick above resistance (with high volume) = Stop hunt before reversal downward. Confirmation: Volume must spike (volume > 1.5x the average volume). ATR-based wicks must be longer than usual (showing a stop-hunt trap). 📌 Step 3: Enter a Trade After a Stop-Hunt 🔹 Bullish Trade (Buying a Dip)
If a green arrow appears (stop-hunt below support): ✅ Enter a long (buy) trade at or just above the wick’s recovery level. ✅ Stop-loss: Below the wick’s low (avoid getting hunted again). ✅ Take-profit: Next resistance level or mid-range of the liquidity zone. 🔹 Bearish Trade (Shorting a Fakeout)
If a red arrow appears (stop-hunt above resistance): ✅ Enter a short (sell) trade at or just below the wick’s rejection level. ✅ Stop-loss: Above the wick’s high (avoid getting stopped out). ✅ Take-profit: Next support level or mid-range of the liquidity zone. 📌 Step 4: Set Alerts & Automate ✅ The indicator triggers alerts when a stop-hunt is detected. ✅ You can set TradingView to notify you instantly when:
A bullish stop-hunt occurs → Look for long entry. A bearish stop-hunt occurs → Look for short entry. 📌 Example Trade Setup Example (BTC Long Trade on Stop-Hunt)
BTC is near $40,000 support (green liquidity zone). A long wick drops to $39,800 with a green arrow (bullish stop-hunt signal). Volume spikes, and price recovers quickly back above $40,000. Trade entry: Buy at $40,050. Stop-loss: Below wick ($39,700). Take-profit: $41,500 (next resistance). Result: BTC pumps, stop-loss remains safe, and trade profits. 🔥 Final Tips Always wait for confirmation (don’t enter blindly on signals). Use higher timeframes (15m, 1H, 4H) for better accuracy. Combine with Order Flow tools (like Bookmap) to see real liquidity zones. 🚀 Now try it on TradingView! Let me know if you need adjustments. 📈🔥
Script de código aberto
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.