Liquidity Heatmap: Complete Setup Guide
Liquidity Heatmap analyzes trading activity across a grid of price levels over a customizable lookback period, measuring how much volume or candle interaction has occurred at each level. A percentile filter displays only the most significant liquidity clusters, color-coded by position relative to the current price.
What It Does
Green zones below price indicate support liquidity, red zones above indicate resistance liquidity, with intensity reflecting concentration magnitude. The multi-timeframe capability computes the analysis on a higher timeframe and projects it onto your current chart, revealing where significant liquidity pools exist across different time horizons.
Key Features
Liquidity Concentration Mapping
Analyzes trading activity across price levels and identifies where the highest concentrations of volume and candle interaction exist.
Smart Filtering
Filters out low-significance levels and displays only the most meaningful liquidity clusters, keeping the chart clean and actionable.
Multi-Timeframe Projection
Runs the entire liquidity analysis on a configurable higher timeframe and projects the results onto your current chart for cross-timeframe insight.
Intensity Color Gradient
Color-coded from green (support below price) to red (resistance above), with multiple intensity tiers for the strongest concentration zones.
In Action
Liquidity Heatmap applied across different markets.
Settings & Parameters
Key settings you can configure in TradingView.
| Parameter | Type | Default | Description |
|---|---|---|---|
| Liquidity Filter | int | 85 | Percentile threshold for displaying zones. At 85, only the top 15% of liquidity concentrations are shown. Lower values show more zones. |
| Block Size | string | Large | Controls the grid resolution: Large for broader zones, Medium for moderate detail, Small for fine-grained price levels. |
| Volume-Based Cloud | bool | true | When enabled, evaluates liquidity based on volume concentration. When disabled, uses candle count within each zone. |
| Lookback Period | int | 300 | Number of past candles to analyze. Larger values capture more history but may include less relevant older data. |
| Higher Timeframe | timeframe | 60 | Runs the liquidity analysis on this timeframe and projects results onto your chart. |
How to Use It
Read the Color Coding
Green zones below the current price represent support liquidity where buyers are concentrated. Red zones above represent resistance liquidity where sellers are waiting. The brighter the color, the stronger the concentration.
Identify High-Liquidity Clusters
Look for the brightest, most concentrated zones near the current price. These represent areas where the most trading activity has occurred and where price is most likely to react.
Use as Target Zones
Price tends to gravitate toward high-liquidity areas. Use the brightest zones as potential profit targets for your trades, as price often stalls or reverses at these concentrations.
Apply Multi-Timeframe Context
Set the Higher Timeframe input to see where liquidity exists on broader time horizons. This reveals the bigger picture of where institutional liquidity pools are positioned.
Best Practices
Keep the Filter High
The default 85 percentile filter ensures only the most significant zones appear. Lowering it too much creates visual noise that defeats the purpose of the heatmap.
Use Volume-Based Mode in Liquid Markets
For high-volume markets like BTC, ES, or major forex pairs, volume-based analysis gives the most accurate liquidity picture. Switch to candle-based for lower-volume instruments.
Adjust Block Size to Your Chart
Large blocks work well on higher timeframes for a broad liquidity overview. Switch to Small on lower timeframes for more precise zone identification.
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