Heatmap Liquidity Zones [BigBeluga]๐ต OVERVIEW
Heatmap Liquidity Zones is a higher-timeframe volume heatmap tool designed to reveal where liquidity is concentrated inside institutional ranges.
Instead of plotting a traditional volume profile, this indicator builds a dynamic heatmap across each selected higher-timeframe candle.
It highlights high-volume price clusters, filters significant liquidity zones, and extends them forward as actionable support/resistance levels.
The result is a clean liquidity map that visualizes where participation is strongest โ and where reactions are most likely to occur.
๐ต CORE CONCEPT
HTF Range Segmentation โ Each higher-timeframe candle (D/W/M or custom) defines a new accumulation range.
ATR-Based Adaptive Binning โ Vertical bin size is derived from ATR to maintain consistent resolution across volatility regimes.
Volume Density Mapping โ Volume is distributed into price bins and normalized relative to the highest-volume bin.
Liquidity Filtering โ Only bins exceeding a configurable percentage threshold are promoted to active liquidity levels.
Self-Cleaning Zones โ Liquidity levels automatically disappear once breached by price.
๐ต HOW IT WORKS
1๏ธโฃ Higher-Timeframe Reset Logic
When a new selected HTF candle begins, the previous range is finalized.
A new accumulation range starts from that bar.
High and Low are tracked dynamically throughout the segment.
2๏ธโฃ ATR-Based Bin Construction
ATR defines the vertical bin size (ATR ร Multiplier).
The total range is divided into up to Max Bins.
This ensures bin resolution adapts automatically to volatility.
3๏ธโฃ Volume Distribution
For each completed segment, volume is distributed into bins based on proximity to bin midpoint.
Volume per bin is normalized relative to the maximum bin.
Each bin is assigned a heat color based on relative density:
Low Density โ Purple
Mid Density โ Cyan
High Density โ Yellow
4๏ธโฃ Liquidity Zone Creation
If a bin exceeds the Liquidity Filter %, it becomes a tracked liquidity level.
Liquidity levels extend forward as horizontal lines.
The thickness is controlled by Liquidity Level Width.
Stronger zones display larger markers and percentage labels.
๐ต HEATMAP VISUAL STRUCTURE
Completed segments display full heatmap boxes across the range.
Active segment updates in real time.
Color intensity reflects liquidity concentration.
High-density zones stand out clearly for institutional reference.
๐ต OPTIONAL MOVING AVERAGE
Optional smoothing MA overlay (SMA, EMA, RMA, WMA, VWMA).
Hidden by default.
Can be used for confluence with liquidity zones.
๐ต KEY FEATURES
Higher-timeframe segmented liquidity mapping.
ATR-based adaptive resolution.
Three-stage heatmap gradient.
Configurable liquidity filtering.
Auto-expiring support/resistance levels.
Dynamic zone thickness based on volume strength.
Real-time developing heatmap.
Optional MA overlay.
๐ต HOW TO USE
Focus on yellow (high-density) zones for strongest liquidity pools.
Watch reactions at filtered liquidity levels.
Use HTF segmentation (Weekly/Monthly) to identify institutional positioning.
Combine with breakout tools for liquidity sweep setups.
Lower ATR multiplier โ more granular liquidity clusters.
Higher Liquidity Filter % โ only strongest zones remain.
๐ต INTERPRETING LIQUIDITY
High density near highs โ potential distribution.
High density near lows โ potential accumulation.
Clustered zones โ compression areas before expansion.
Thin zones โ low participation, faster price movement potential.
๐ต CONCLUSION
Heatmap Liquidity Zones transforms higher-timeframe volume into a structured liquidity map.
By combining ATR-adaptive binning, density-based heat gradients, and intelligent liquidity filtering, it highlights where institutional participation is concentrated โ and where meaningful reactions are most likely.
This makes it especially powerful for identifying liquidity pools, sweep zones, and structural turning points.
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