Liquidity Hunter - FattyTrades

How it works

The indicator plots liquidity levels across multiple timeframes including 1H, 4H, Daily, Weekly, and Monthly charts to identify potential market maker targets. It uses two primary methods: first, identifying multi-timeframe highs and lows as potential liquidity zones, and second, detecting fair value gaps or imbalances that market makers might target.

When liquidity is purged, the indicator displays these zones as dotted lines, allowing traders to visualize potential price movement areas. The fair value gap component can be configured to show gaps from higher timeframes alongside the current chart, helping traders understand potential intraday movement targets.

Why it may be useful

This indicator provides traders with a strategic view of potential market maker liquidity targets, helping them understand where price might move based on institutional trading behavior. By visualizing liquidity zones across different timeframes, traders can make more informed decisions about potential entry and exit points.

The ability to see both multi-timeframe liquidity and fair value gaps in one view reduces the need for constant timeframe switching, allowing traders to maintain focus on their preferred trading timeframe while still considering broader market dynamics.

When to explore it

The indicator is most effective during periods of market consolidation or when looking to identify potential breakout or reversal points. Traders can use it to spot areas where market makers might be likely to trigger liquidity and cause significant price movement.

It works particularly well for intraday trading strategies, especially in markets with clear institutional participation like forex, futures, and major stock indices. Traders should combine this indicator with other technical and fundamental analysis tools to confirm potential trade setups.

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