Pure Price Action Liquidity Sweeps

Summary

Pure Price Action Liquidity Sweeps (by LuxAlgo) detects bullish and bearish liquidity sweeps around recent pivot highs/lows. It plots horizontal liquidity lines from the pivot and highlights sweep zones when price wicks through a level and closes back inside. Untouched (unswept) levels remain as dotted lines; swept levels are drawn solid with a small rectangle marking the sweep.

1) Liquidity Sweeps

• Liquidity pools often sit above swing highs (buy-stop clusters) and below swing lows (sell-stop clusters).

• A breakout is price closing beyond a level with follow-through.

• A liquidity sweep (a.k.a. stop run) is price wicking through a prior high/low to trigger stops, then closing back inside the prior range.

• After a sweep, markets often revert toward the prior range or pivot area; however, strong trends can ignore this and keep pushing.

2) How the Indicator Works

Pivot detection by depth

You control the sensitivity with profundidad:

• Short-Term (1): periodoPivote = 5, offset = 2

• Mid-Term (2): periodoPivote = 13, offset = 6

• Long-Term (3): periodoPivote = 21, offset = 10

A Pivot High is confirmed when high[offset] equals the highest high over periodoPivote.
A Pivot Low is confirmed when low[offset] equals the lowest low over periodoPivote.

Note: Pivots confirm with a delay (offset) by design—this reduces noise.

Sweep vs mitigation logic

For each active pivot level (within limiteBarras):

• Bearish sweep (above a Pivot High):
  If price wicks above the pivot high but the close is back below it → mark as swept and draw a small rectangle around the sweep candle’s wick (from pivot to max wick).

• Bullish sweep (below a Pivot Low):
  If price wicks below the pivot low but the close is back above it → mark as swept and draw a small rectangle (from min wick to pivot).

• Mitigation (level invalidation):
  If a close beyond the level occurs (close above a high-pivot line for bearish side, or close below a low-pivot line for bullish side), the level is considered mitigated and stops plotting.

Drawing rules

• Unswept & unmitigated: draw dotted horizontal line from the pivot bar to the current bar.

• Swept: draw solid line from the pivot bar to the sweep bar, plus a semi-transparent rectangle marking the sweep.

• Visibility & performance: at most maxLineas lines per side are drawn; only pivots within the last limiteBarras bars are considered. Processing happens at bar close.

3) Reading the Signals on Chart

• Bearish liquidity sweep (above highs)
  You’ll see a solid red line from the pivot high to the sweep bar and a small red rectangle above the line. This suggests a failed breakout/stop run and potential mean reversion or downside reaction.

• Bullish liquidity sweep (below lows)
  You’ll see a solid green line from the pivot low to the sweep bar and a green rectangle below the line. This hints at a failed breakdown and potential upside reaction.

• When to be cautious

  • Strong trends can convert sweeps into continuation (sweep + immediate close through the level on subsequent bars).

  • Dense clusters of equal highs/lows can create multiple sweeps—use context and risk controls.

4) Inputs & Defaults (Configuration Guide)

Depth mapping (for quick tuning):

• profundidad = 1 → periodoPivote = 5, offset = 2 (fast/short-term)

• profundidad = 2 → periodoPivote = 13, offset = 6 (balanced/mid-term)

• profundidad = 3 → periodoPivote = 21, offset = 10 (slow/long-term)

5) ProBuilder Code (Paste & Go)

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