Plotting Higher-Timeframe Highs and Lows as Liquidity Levels
Summary
This indicator marks the previous high and low from selected chart timeframes as horizontal levels. It supports up to five configurable timeframes, with monthly, weekly, and daily levels enabled by default and shorter intervals available as options. When price moves above a stored high or below a stored low, the indicator treats that level as purged, changes its visual style, and can trigger an alert. Purged levels are retained separately and cleared on a configurable timeframe rotation.
The method provides a charting aid for tracking prior-period extremes and possible areas where resting liquidity may be taken. It does not define entries, exits, position sizing, or a complete trading strategy, and the document provides no performance analysis. The levels are based on completed higher-timeframe bars; users should still consider how chart timeframe, instrument data, and the indicator’s level-clearing settings affect what remains visible. The source code is an implementation description, not evidence that these levels predict future price movement.
Key ideas
- The indicator plots prior-period highs and lows for up to five selected timeframes.
- A high is marked as purged when price trades above it, and a low when price trades below it.
- Purged levels receive a distinct style and may be removed on a configurable timeframe change.
- Alerts notify users when upper or lower levels are crossed.
- The indicator visualizes price levels but does not provide tested trade rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.