EQH/EQL Liquidity Zones [LuxAlgo]The EQH/EQL Liquidity Zones indicator automatically detects and tracks Equal Highs (EQH) and Equal Lows (EQL) to identify significant areas of resting liquidity. It provides a visual framework for understanding where market participants have placed stop-orders, offering dynamic targets for price action to gravitate toward and eventually "sweep."
🔶 USAGE
Equal Highs and Equal Lows are key structural patterns used in Smart Money Concepts (SMC) to represent liquidity. When price forms two or more peaks or troughs at approximately the same price level, it creates a "retail" resistance or support line. The script highlights these as zones, as price often seeks to move beyond these levels to activate the liquidity (stop-orders) residing there.
🔹 Identifying Liquidity
The script scans historical pivots to find matching prices within a user-defined threshold. When a match is found, a zone is drawn from the original pivot point and extended until the level is "swept" (price moves above an EQH or below an EQL).
🔹 Volume and Clusters
To help traders prioritize zones, the indicator displays the volume associated with the specific pivot points forming the liquidity. If multiple liquidity zones are situated very close to one another, the script dynamically merges their labels to show a "cluster" count (e.g., 2x EQH) and the total accumulated volume at that level.
🔹 Sweep Behavior
Once price breaches the maximum high or minimum low of a zone, the zone is considered "swept." Users can choose to have these zones deleted immediately or kept on the chart with a greyed-out visual style to study historical price reactions.
🔶 DETAILS
The indicator uses a pivot-based detection system combined with a percentage-based threshold. This ensures that even if two highs are not exactly equal to the decimal point, they can still be classified as Equal Highs if they are within a tight proximity (the "Equality Threshold").
The script tracks "Active Zones" up to a configurable limit. For high-volatility environments or lower timeframes (like the 1m chart), users can increase the maximum active zones to ensure all relevant resting liquidity is accounted for during fast-moving market conditions.
🔶 SETTINGS
🔹 Liquidity Detection
Pivot Left/Right Length: Determines the number of bars required to confirm a structural high or low.
Equality Threshold (%): The maximum percentage difference allowed between two pivots to classify them as "Equal."
Max Active Zones: Controls the maximum number of unswept zones tracked simultaneously.
🔹 Visuals
Bullish/Bearish Zone Color: Sets the colors for EQL (supportive liquidity) and EQH (resistance liquidity).
Zone Transparency: Adjusts the opacity of the liquidity boxes.
Show Midline: Toggles a dashed line at the average price of the equal pivots.
Show Volume: Displays the volume captured at the specific pivot points.
Delete on Sweep: If enabled, removes the zone from the chart immediately once price breaches the level.
Indicatore Pine Script®






















