Multi-Timeframe Liquidity Levels

kemarin

Multi-Timeframe Liquidity Levels – Overview

The Multi-Timeframe Liquidity Levels indicator automatically displays significant highs and lows from various timeframes (Daily, Weekly, Monthly, and Quarterly) on your current chart. This allows traders to quickly identify potential support and resistance zones without frequently switching between different timeframe charts. Additionally, the script offers extra lines for special reference points (e.g., the “Midnight” midpoint of the current day and the previous day’s open/close) to highlight potential liquidity zones even more clearly.



1. Core Idea and Benefits

Time-Saving: Instead of manually reviewing charts in different timeframes, the indicator fetches relevant high/low levels automatically and shows them on your active timeframe.

Clear Layout: Traders instantly see where the Daily, Weekly, Monthly, and Quarterly highs and lows lie—areas often associated with institutional orders or liquidity hunts.

Customizable: You can tailor the color scheme, line style (Solid, Dashed, Dotted), and line width, ensuring the displayed levels fit your personal charting style.




2. How It Works

Multi-Timeframe High/Low
For each timeframe (Day, Week, Month, Quarter), the indicator references the previous candle’s high and low (high[1], low[1]).

Using request.security(...), these values are plotted on the chart you’re currently viewing.

Flexible Display
You can individually enable or disable the Daily, Weekly, Monthly, and Quarterly lines, depending on which levels are most relevant to your trading.

With Line Style (Solid, Dashed, Dotted) and Line Width, you can easily emphasize certain lines you consider more important.

Additional Lines
“Midnight” Line: A theoretical midpoint between today’s high and low, which can be useful for gauging daily pivot areas.

Previous Day’s Open/Close: Many traders track these reference points to anticipate market reactions. You can show or hide these lines as desired.

Automatic Line Removal & Creation
When a particular timeframe (e.g., “Show Monthly Levels”) is disabled, the script automatically removes the existing monthly lines.

Enabling it again recreates those lines without hassle.



3. Usage and Interpretation

Identifying Support and Resistance
Highs and lows from higher timeframes are often key zones for entries, exits, or major market reactions.

A Daily level may be crucial for short-term traders, whereas Monthly or Quarterly levels can indicate long-term liquidity areas.

Spotting Market Shifts
If price decisively moves above a Higher-Timeframe line, it could signal strong momentum.


Conversely, a failed breakout (where price quickly returns under or above a level) might warn of a potential reversal.

Extra Lines as Filters
The “Midnight” Line helps visualize a rough central price for the current day, aiding in intraday directional bias.

Previous Day’s Open/Close: Common reference points for day traders, where swift approaches and rejections can indicate potential entries or partial take-profit zones.



4. Practical Tips

Use Color-Coding Wisely: Assign distinct colors (e.g., Blue for Daily, Green for Weekly, Orange for Monthly, Purple for Quarterly) so you can easily discern which timeframe you’re looking at.

Toggle On/Off As Needed: Day traders might focus on Daily and Weekly, while long-term traders may pay closer attention to Monthly and Quarterly.

Combine with Price Action: Lines alone don’t constitute a trading strategy. Use them alongside candlestick patterns, volume analysis, or other indicators for a more complete market perspective.



5. Important Notes & Recommendations

Not Financial Advice: This indicator simply reflects historical high/low data across multiple timeframes and does not constitute a buy or sell recommendation.

Trader Responsibility: Observe how the market actually behaves around these lines and adapt your risk management accordingly.