3 Liquidity indicators. The liquidity indicators really need to be used together; they all give you great insight into the changes happening under the surface of the price action.
1. Liquidity sentiment indicator. This indicator shows you the strength of liquidity during a move up or in a pull back. It’s not moderated so it shows a relative strength of liquidity over all time scales. This is the most important of the indicators for staying in a trade as you actually see how much of the strength of the liquidity had dissipated during a move in price, it’s great for all time scales.
2.Time layered Liquidity Indicator gives you an idea of how long a change in liquidity strength takes to play out. The thickest line showing the current liquidity on the surface(nearest time period), but if this has been preceded by very strong liquidity at the surface for an extended period of time the moving average of the different layers of the liquidity will give you a good idea of how long that move has to play out until the liquidity makes a neutral level from the recent strong surface liquidity.
3. Irregular liquidity is vital to trading futures in short time periods that bridge different time zones over the Globex Futures markets, and securities(ones only trade during lit hours) over longer periods that bridge more than one day. This is because the lit hours of NYSE have so much more liquidity than the other globex hours, and different days of the week or month also have different patterns of liquidity because of hedging. The irregular liquidity indicator moderates any time period with the last 15 either days or week periods depending on the setting you choose, and smooths them to a moving average of 8 time periods. The day moderation is for a 4 hour time period and less setting on your TradingView. The weekly setting is for smoothing when you have your time period set to days. The Irregular Liquidity indicator also has a line in its moderation scale that is set at neutral to give you a relative feel of how far above or below an average liquidity the current measurement is.
1. Liquidity sentiment indicator. This indicator shows you the strength of liquidity during a move up or in a pull back. It’s not moderated so it shows a relative strength of liquidity over all time scales. This is the most important of the indicators for staying in a trade as you actually see how much of the strength of the liquidity had dissipated during a move in price, it’s great for all time scales.
2.Time layered Liquidity Indicator gives you an idea of how long a change in liquidity strength takes to play out. The thickest line showing the current liquidity on the surface(nearest time period), but if this has been preceded by very strong liquidity at the surface for an extended period of time the moving average of the different layers of the liquidity will give you a good idea of how long that move has to play out until the liquidity makes a neutral level from the recent strong surface liquidity.
3. Irregular liquidity is vital to trading futures in short time periods that bridge different time zones over the Globex Futures markets, and securities(ones only trade during lit hours) over longer periods that bridge more than one day. This is because the lit hours of NYSE have so much more liquidity than the other globex hours, and different days of the week or month also have different patterns of liquidity because of hedging. The irregular liquidity indicator moderates any time period with the last 15 either days or week periods depending on the setting you choose, and smooths them to a moving average of 8 time periods. The day moderation is for a 4 hour time period and less setting on your TradingView. The weekly setting is for smoothing when you have your time period set to days. The Irregular Liquidity indicator also has a line in its moderation scale that is set at neutral to give you a relative feel of how far above or below an average liquidity the current measurement is.
Email me at bruce@nakeddelta.com or find me on twitter at @naked_delta !
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Email me at bruce@nakeddelta.com or find me on twitter at @naked_delta !
Find us at nakeddelta.com
Find us at nakeddelta.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.