📄️ Getting Started
Liquidity Detective get its data from higher timeframes and includes seven modular timing and trend signals, all serving the concept of Relative liquidity strength and cycles, also it extending the concept of relative signal breakouts and combined multifactorial signal. It provides traders with reliable momentum oscillation analysis, trading opportunities, and market momentum signals.
📄️ RSH & ColorBars
The RSH (Relative Strength Histogram) is an effective trend momentum tool that translates the RSI from higher timeframes into a layer-2 indicator, addressing the low success rate and high false positive of simple RSI strategies. By observing the length and color of the histogram bars, traders can intuitively understand strength changes in buy/sell cycles, identify shifts in trend momentum, and detect early reversal signals, providing opportunities for early market entries and exits.
📄️ ADX & Trendline
In Liquidity Detective, the complex signals of ADX and Trendline have been simplified through the color changes of two fixed horizontal lines. These lines are displayed in red and white, providing more intuitive trend analysis. Additionally, the Liquidity Detective uses data from a timeframe that is twice the chart's timeframe to calculate the ADX trend, offering more sustainable analysis.
📄️ CycleWave
CycleWaves breaks down market trends into multiple cycles. Utilizing the standardized Liquidity Detective framework, CycleWaves incorporates concepts of overbought, oversold, and midline levels, allowing further analysis through patterns such as double tops, double bottoms, and breakouts. In addition to providing detailed cycle analysis, CycleWaves automatically plots support and resistance lines in the background and marks key breakout points, offering additional timing signals. Like other Liquidity Detective tools, CycleWaves analyzes data based on higher timeframes to ensure more consistent and reliable market insights.
📄️ Background Color
BG Colors in the Liquidity Detective are generated through a relative strength algorithm. Although they appear in the same form as Apex BG Colors, they are not solely dependent on RSI calculations. This algorithm filters out minor fluctuations in the trend, helping traders stay in the trend longer and avoid missing opportunities due to hesitation.
📄️ Apex
After the RSI enters an overbought or oversold state, the price often reacts quickly, with increased volatility, resembling the sharp rise or fall of a raptor. This state typically lasts for a short time, but Liquidity Detective extends this strong state threefold using HTF data, making it more durable. In short, what was originally a velociraptor turns into a super-velociraptor.
📄️ Reversal Signal
In Liquidity Detective, all signals and states generated by tools such as ADX, trend lines, RSH, RSI breakouts, CycleWave breakouts, and volume harmony are re-analyzed and integrated. This has created a relative sentiment analysis system based on timing, which constructs a composite reversal signal to help traders achieve balanced trading decisions by considering multiple aspects and factors.
📄️ Real-Time vs Confirmed Signals
When using MethodAlgo indicators, the confirmation of all signals depends on the closing of the candle. A signal is only confirmed as valid after the candle has closed. Before the candle closes, signals may change as the price fluctuates. For example, if a signal’s trigger condition requires an upper wick to reach exactly 20%, but this condition is not met by the time the candle closes, the signal will disappear. Therefore, the confirmation of a signal relies on the data after the candle has closed, rather than any realtime signals generated during its formation.