Liquidity composition

Liquidity composition breaks down transaction activity at each point in price, available for net volume and volume delta. Each candle is divided into lots for monitoring key events at each point in price, such as trapped traders, liquidity voids and more.

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Tutorials

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Tutorials

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Tutorials

Tutorial

Step-by-step tutorial going over concept and settings

Tutorial

Step-by-step tutorial going over concept and settings

Overview

Orderflow

Lots & columns

Point of control

Net activity

Table

Overview

Orderflow

Lots & columns

Point of control

Net activity

Table

Overview

Orderflow

Lots & columns

Point of control

Net activity

Table

Practical tips

Practical tips to maximize success with Liquidity composition

Practical tips

Practical tips to maximize success with Liquidity composition

Trapped traders

The most obvious use case for orderflow tools is identifying trapped traders/absorption, seen in high transaction activity at the very highs/lows of a candle or even better, at wicks. When high transaction activity is placed at a wick, price went one direction with a lot of participation (high effort) and came right back up (low impact) within the same time period.

Trapped traders

The most obvious use case for orderflow tools is identifying trapped traders/absorption, seen in high transaction activity at the very highs/lows of a candle or even better, at wicks. When high transaction activity is placed at a wick, price went one direction with a lot of participation (high effort) and came right back up (low impact) within the same time period.

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Consolidation blocks

Using volume delta and net volume in tandem has the benefit of being able to identify points in price with a lot of up and down price movement packed into a small area, i.e. consolidation. Points in price where price hangs around for an extended period of time can be used to identify levels of interest for re-tests and breakout opportunities.

Consolidation blocks

Using volume delta and net volume in tandem has the benefit of being able to identify points in price with a lot of up and down price movement packed into a small area, i.e. consolidation. Points in price where price hangs around for an extended period of time can be used to identify levels of interest for re-tests and breakout opportunities.

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Acceptance & rejection

Low/no participation is considered to reject prices and high participation is considered to accept prices. With this in mind, unfinished auctions occur when participation is high at highs/ lows, indicating willingness and interest to trade at higher or lower prices. Auction is considered finished when the opposite is true, i.e. when participants are not showing willingness to trade at higher/lower prices

Acceptance & rejection

Low/no participation is considered to reject prices and high participation is considered to accept prices. With this in mind, unfinished auctions occur when participation is high at highs/ lows, indicating willingness and interest to trade at higher or lower prices. Auction is considered finished when the opposite is true, i.e. when participants are not showing willingness to trade at higher/lower prices

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Liquidity voids

Low to zero volume sections can be used to identify points in price with little to no trading, leaving a volume null/void behind. Typically sections like these represent gaps on a lower timeframe chart, which can be used as reference levels for targets and support/resistance.

Liquidity voids

Low to zero volume sections can be used to identify points in price with little to no trading, leaving a volume null/void behind. Typically sections like these represent gaps on a lower timeframe chart, which can be used as reference levels for targets and support/resistance.

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Getting context from price action #2

Price action based levels are a great way to get context around orderflow events. Simple range highs/lows as a single data point serve as a high probability regimes for reversals, making them a great point of confluence for identifying trapped traders/absorption.

Getting context from price action #2

Price action based levels are a great way to get context around orderflow events. Simple range highs/lows as a single data point serve as a high probability regimes for reversals, making them a great point of confluence for identifying trapped traders/absorption.

Expand

Getting context from price action #1

To identify absorption, it's best to look for opportunities where an opposing trend is clearly in place, e.g. absorption into highs on an uptrend, absorption into lows on a downtrend. Without clear trend, extreme activity at an extreme end of a candle might be aggressive participants attempting to initiate a new trend, rather than getting absorbed in the same sense

Getting context from price action #1

To identify absorption, it's best to look for opportunities where an opposing trend is clearly in place, e.g. absorption into highs on an uptrend, absorption into lows on a downtrend. Without clear trend, extreme activity at an extreme end of a candle might be aggressive participants attempting to initiate a new trend, rather than getting absorbed in the same sense

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Find & Install

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  3. Search "quantifytools" to view all available trading tools

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  5. Click an indicator to apply it to your chart

© 2022-2024 quantify.tools. All rights reserved.

We are an independent script vendor on TradingView and have no affiliation with them. All content provided by us are strictly for educational purposes and should not be construed as financial advice.


Hypothetical or simulated performance shown does not represent actual trading and past results do not guarantee future performance. By using our content for decision making, you do it at your own risk and fully acknowledge that you alone are responsible for your own research and financial decisions.


Full disclaimer

Terms of Service

Privacy Policy

© 2022-2024 quantify.tools. All rights reserved.

We are an independent script vendor on TradingView and have no affiliation with them. All content provided by us are strictly for educational purposes and should not be construed as financial advice.


Hypothetical or simulated performance shown does not represent actual trading and past results do not guarantee future performance. By using our content for decision making, you do it at your own risk and fully acknowledge that you alone are responsible for your own research and financial decisions.


Full disclaimer

Terms of Service

Privacy Policy

© 2022-2024 quantify.tools. All rights reserved.

We are an independent script vendor on TradingView and have no affiliation with them. All content provided by us are strictly for educational purposes and should not be construed as financial advice.


Hypothetical or simulated performance shown does not represent actual trading and past results do not guarantee future performance. By using our content for decision making, you do it at your own risk and fully acknowledge that you alone are responsible for your own research and financial decisions.


Full disclaimer

Terms of Service

Privacy Policy