The ICT-LS-MTF (Liquidity Sweeps) indicator is a powerful tool designed for traders who utilize top-down analysis, particularly those following ICT (Inner Circle Trader) methodologies. It allows you to seamlessly overlay up to six distinct higher timeframes (HTF) directly onto your current chart, eliminating the need to constantly switch between different time views. The core feature of this indicator is its ability to automatically detect and plot liquidity sweeps—a key concept where price moves above an old high or below an old low to grab liquidity before reversing. These events are clearly marked on both the HTF overlay and the main lower timeframe (LTF) chart, providing clear visual cues for potential market reversals. By integrating HTF context with LTF precision, this tool helps traders identify high-probability setups with greater confidence.
2. Logic
The indicator's logic is built on the principles of multi-timeframe analysis and liquidity concepts.
2.1. Multi-Timeframe Overlay The indicator fetches data from up to six user-defined higher timeframes and displays them as distinct candle charts in the right margin of your screen. This provides an immediate, at-a-glance view of the broader market structure and trend across different resolutions.
2.2. Liquidity Sweep Detection A liquidity sweep is identified when the wick of a new candle extends beyond the high or low of a previous candle, but its body closes back within the range of the prior candle.
A bullish sweep occurs when price wicks below a prior low and then closes higher.
A bearish sweep occurs when price wicks above a prior high and then closes lower.
These sweeps are marked with a solid line, signaling a potential grab of liquidity.
2.3. Sweep Invalidation A sweep is considered invalidated if a subsequent candle's body closes beyond the level of the sweep. For example, a bearish sweep is invalidated if a candle body closes above the high that was swept. Invalidated sweeps are marked with a dashed line, helping traders recognize when a potential reversal signal has failed.
2.4. Lower Timeframe (LTF) Mapping To bridge the gap between higher and lower timeframes, the indicator can project key price levels (Open, Close, High, and Low) from a selected HTF directly onto the main chart. This helps in identifying areas of support and resistance derived from the higher timeframe structure.
3. Settings & Options
The indicator offers extensive customization to tailor its functionality and appearance to your specific trading style.
3..1 Timeframes
HTF I to VI: Six slots to enable and configure different higher timeframes. For each, you can set the timeframe (e.g., 15m, 1H, 4H), the number of historical candles to display, and toggle 'M' to map its data onto the LTF chart.
Anchor to NY Midnight: When enabled, this option synchronizes the start of all HTF candles to 00:00 New York time, which is crucial for ICT-based daily bias analysis.
3.2. HTF (Higher Timeframe Display)
Coloring: Customize the colors for bullish, bearish, and wick/border elements of the HTF candles.
Offset: Adjust the distance of the HTF candle overlays from the main chart's most recent candle.
Space: Set the spacing between individual HTF candles within a group.
Margin: Control the distance between different HTF groups (e.g., between the 1H display and the 4H display).
Size: Change the width of the HTF candles (Tiny, Small, Medium, Large, Huge).
Labels: Toggle the visibility of timeframe labels (e.g., '1H', '4H'), and customize their size, position (Top, Bottom, or Both), and color.
3.3. LTF (Lower Timeframe Mapping)
H/L Line: Show or hide lines marking the high and low of the mapped HTF candle on your main chart. Customize the line style, width, and color.
O/C Line: Display or hide a vertical line representing the open/close range of the mapped HTF candle. Customize its style, width, and color.
3.4. Sweep
Sweep: Globally enable or disable the sweep detection feature. You can independently toggle visibility on the LTF and HTF charts.
I-Sweep (Invalidated Sweep): Globally enable or disable the invalidated sweep feature, with separate visibility toggles for LTF and HTF.
Line Styles: Customize the line style (solid, dashed, dotted), width, and color for both valid and invalidated sweeps.
Real-time: Toggle the visibility of sweeps that are forming or being invalidated on the current, unclosed candle.
3.5. Alerts
Sweep Formation: Enable this to receive a TradingView alert whenever a new liquidity sweep is confirmed on a closed candle.
Sweep Invalidation: Enable this to receive an alert when a previously identified sweep becomes invalidated.