Mapping Liquidity Swings with Pivot Zones, Touches, and Volume

Summary

This document explains an indicator that marks potential support and resistance around historical swing highs and lows. It detects pivots over a configurable lookback, defines each zone using either the candle wick area or its full range, and tracks price interactions. A zone records the number of touches, the volume associated with those touches, and whether price later closes beyond it. Zones with enough touches are drawn as chart areas; broken levels are distinguished from levels that remain active. Resistance and support can be displayed separately, and a higher touch threshold is suggested to reduce clutter.

The document includes a ProRealTime implementation and describes its visual conventions, but it gives no backtest or evidence that the zones predict future price behavior. The accompanying explanation presents the tool as a way to inspect price interaction, not a complete entry, exit, or risk management system. Results may also depend on pivot lookback, zone boundaries, and touch filtering; traders would need to validate those choices for their markets and data.

Key ideas

• The indicator identifies candidate zones from pivot highs and lows over a configurable lookback.
• It tracks zone touches, touch volume, and whether price later crosses the level.
• Zone boundaries can use wick areas or the candle’s full range.
• Separate display settings control support and resistance zones, while touch filtering reduces chart noise.
• The document supplies code but no evidence of predictive performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.