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Liquidity sequences: LQ-B*, LQ-S* and the chain

The 15-minute liquidity layer (see Liquidity) marks levels, takes and sweeps. This page covers the two features built on top of it: the LQ-B*/LQ-S* labels and the origin chain. Both describe a sequence of events after liquidity is taken. They are setup context, not instructions: no entry, stop or target levels are drawn or sent.

Important: Both features run only on 1- to 5-minute charts, with Enable origin-TF liquidity layer on, on closed bars. They draw only inside the last Draw marks in the last N bars bars (2,000 by default).

In this layer, B marks the long side (a low was taken and price came back above it) and S marks the short side (a high was taken and price came back below it). B labels are green, S labels are red.

LQ-B* label and origin chain labels after a sweep of a 15-minute low
LQ-B* label and origin chain labels after a sweep of a 15-minute low

LQ-B* and LQ-S*

An LQ-B* or LQ-S* label appears on a sweep bar (an SWP sweep of a 15-minute level or a chart swing) when:

  1. the bar's volume is at least Big volume: bar volume ≥ k × average (2.0) times the average volume of the previous Big volume: average length (bars) (60) bars, or, with Next bar may confirm (mark one bar later) on, the next bar has that volume;
  2. the star * means the structure side agrees: the recent sequence of chart swings already leans the same way as the sweep.
LabelPlacementMeaning
LQ-B*Below the low, greenA low was swept with high volume and price closed back above it; structure leans long.
LQ-S*Above the high, redA high was swept with high volume and price closed back below it; structure leans short.
LQ-B, LQ-S (no star)FadedSame, but structure does not agree. Shown only with Also show LQ-S / LQ-B without * on.

Hover the label to see its tooltip, for example LQ-B* | Long setup context | sweep + close back + big bar volume + structure side agrees.

No labels are added inside the news window (News blackout (UTC)).

The origin chain

The origin chain follows one liquidity take through a sequence of steps, using closed 5-minute and 15-minute candles. Only one chain runs at a time. Turn it on or off with Run the origin chain.

The settings group is called OL3 · Origin chain (8 steps). Only steps 1, 3, 5 and 7 draw labels. Step 2 is the ✓50 flag on the taken level, step 4 is not used, and steps 6 and 8 are timers.

StepLabelWhat happened
1 · Take1·TAKE B <class> or 1·TAKE S <class> (plus ✓50 if the level had that flag)A 15-minute level of at least 1 · minimum 15m level class was taken. A low taken starts a B chain; a high taken starts an S chain. Faint label.
3 · Momentum3·MOM B · 5·IND or 3·MOM B · 5·BOS (S mirror)Within 3 · momentum within N closed 5m candles (3), a closed 5-minute candle moved in the chain's direction with a strong body (3 · body / range ≥, 0.55) and a large range (range ≥ × ATR(5m), 0.8), closing beyond the taken level. If this does not happen in time, the chain fails and the TAKE label is removed.
5 · Structure5·BOS, 5·IND or 5·MIT5·BOS: price closed beyond the last 5-minute pullback swing. 5·IND: not yet (induction). 5·MIT: price pulled back to 5 · mitigation level (share of impulse) (0.5) of the momentum move.
6 · Induction horizonnoneIf the chain is still in IND after 6 · induction horizon (minutes) (240), it fails.
7 · Acceptance7·ACC B OVL<n> or 7·ACC S OVL<n>After 5·MIT, a candle in the chain's direction with a body of at least 7 · accept candle body / range ≥ (0.5) that closes beyond the previous bar and beyond the mitigation level. Once per chain. Solid label.
8 · Bias locknoneAfter step 3, takes on the opposite side are ignored for 8 · bias lock (minutes) (240).

The chain also fails if price trades beyond the extreme of the original sweep.

OVL count

OVL<n> on the 7·ACC label counts how many extra references overlap the chain, from 0 to 3:

  • +1 if the taken level had the ✓50 flag,
  • +1 if the prior day high or low sits in the chain's zone,
  • +1 if another level on the opposite side was taken since the take and sits in that zone.

The tooltip reads, for example, 7·ACC | Long setup context | OVL = overlap count (0-3).

How to read the sequence

  • The chain is a way to structure what you see after a sweep: was there a decisive move away (MOM), did structure shift (BOS) or not (IND), did price come back to the middle of the move (MIT), and did a candle then hold that area (ACC)?
  • A step label describes what already happened on closed candles. It does not predict the next step. A chain can stop at any step, and a chain that fails at step 3 removes its TAKE label.
  • Read it together with the map. A chain that starts at a weekly level is a different picture from one in the middle of the day's range.

Alerts

With the global alert switch on, the layer sends messages that start with AKFB Full | Liquidity layer:

  • alert(): LQ-S* / LQ-B* (on): a part such as LQ-B* XAUUSD 5 Long setup context.
  • alert(): chain momentum / accept (on): parts such as 3·MOM Short setup context XAUUSD @ <price> and 7·ACC Long setup context XAUUSD @ <price>.

Several parts on one bar are joined into one message. The price is the bar's close, shown for context. See Alerts.

Settings

SettingDefaultWhat it does
Show LQ-S* / LQ-B*OnDraws the labels.
Also show LQ-S / LQ-B without *OffAdds faded labels when structure does not agree.
Big volume: bar volume ≥ k × average2.0Volume multiple needed on the sweep (or next) bar.
Big volume: average length (bars)60Bars in the volume average.
Next bar may confirm (mark one bar later)OnLets the bar after the sweep supply the volume; the label then appears one bar later.
alert(): LQ-S* / LQ-B*OnIncludes these labels in liquidity-layer alerts.
Run the origin chainOnRuns the chain and draws its labels.
1 · minimum 15m level classmLowest level class (m, L2, MAJ) that can start a chain.
3 · momentum within N closed 5m candles3Time allowed for the momentum candle.
3 · body / range ≥0.55Body share the momentum candle needs.
range ≥ × ATR(5m)0.8Range the momentum candle needs, in 5-minute ATR.
5 · mitigation level (share of impulse)0.5How deep the pullback must reach for 5·MIT.
6 · induction horizon (minutes)240Time limit for the IND state.
7 · accept candle body / range ≥0.5Body share the acceptance candle needs.
8 · bias lock (minutes)240How long opposite-side takes are ignored after momentum.
alert(): chain momentum / acceptOnIncludes 3·MOM and 7·ACC in liquidity-layer alerts.

Education only. Not financial advice. Trading futures and CFDs carries a high risk of loss.