ChartLuma
Liquidity StructureLQZ

Liquidity Zones

Extend liquidity-volume panels from confirmed swings with Bull, Bear and Delta metrics.

Indicator overview

Use Liquidity Zones to mark the most important target areas above and below price. Red zones above often hold sell-side liquidity and can become upside targets or resistance. Green zones below often hold buy-side liquidity and can become downside targets or support.

They are useful for planning profit targets, placing stops beyond obvious clusters, and watching how price reacts on arrival. Bull, Bear, and Delta show which side was stronger while the zone formed, but the zone is only a likely destination or pause area—not a guarantee of reversal.

QQQ Daily Liquidity Zones

How to read the chart

Upper red zone
Sell-side liquidity formed from a confirmed swing high
Lower green zone
Buy-side liquidity formed from a confirmed swing low
Bull / Bear split bars
Directional volume shares measured while the zone forms
Right-side Delta box
Bull minus Bear volume, green when positive and red when negative
Dotted midpoint and gray base
Panel bounds, separation and extension geometry from the reference

Signal confirmation

Sell-side zone

An upper liquidity area that can act as a target, resistance, or stop-liquidity reference

Buy-side zone

A lower liquidity area that can act as a target, support, or stop-liquidity reference

Volume dominance

Bull/Bear shares and Delta show which side dominated during formation

Zone retirement

The panel stops extending when price crosses its outer edge or maximum age is reached

Further viewing

Watch on YouTube

This video is for feature guidance only. Use the output and parameters shown on this page as the source of truth.

How to use it

  1. 01

    Treat upper sell-side and lower buy-side liquidity as targets first, not automatic reversals

  2. 02

    Delta describes formation dominance; require BOS, CHoCH, or displacement for direction

  3. 03

    Use the far zone edge for invalidation and the next liquidity zone for staged targets

  4. 04

    Evaluate premarket and regular-session volume separately when their microstructure differs

Avoid when:

Missing reliable volume, large tick sizes, extremely thin premarket trading, or frequent gaps.

Parameter guide

Pivot left5

Bars compared to the left; higher values select larger swings

Pivot right2

Explicit confirmation delay that prevents future-data backfill

Zone thickness ATR0.15

Minimum volatility-adjusted thickness of each liquidity panel

Maximum age200

Maximum bars an unbroken zone can extend rightward

Maximum zones4

Maximum latest active liquidity zones retained together

For technical-analysis education only, not investment advice. Use independent judgment and risk controls.