Liquidity Heatmap Settings

The Liquidity Heatmap component in the ILPAC indicator provides settings that allow traders to customize the display of liquidity zones and adjust the heatmap’s responsiveness based on their preferred analysis time frame. Here’s an overview of its configurable options:

• Liquidity Heatmap: Toggle this option to enable or disable the Liquidity Heatmap on the chart. When enabled, the heatmap displays areas of liquidity on the chart, highlighting potential support and resistance zones that may influence price action.

• Heatmap Look-Back: Sets the look-back period used to calculate liquidity zones. Higher values result in a longer-term heatmap, capturing broader liquidity zones, while shorter values highlight more recent liquidity areas, providing a closer focus on short-term liquidity flows.

• Resolution: Defines the level of detail in the heatmap gradient. Higher resolution values produce more granular color gradients but may take longer to load, particularly on extended time frames. Lower resolutions simplify the gradient but may load faster, offering a quick overview of major liquidity areas.

• Liquidity Scale Colors: Customizes the color gradient used in the heatmap to indicate liquidity intensity. This setting allows you to define colors for the Top (high liquidity), Middle, and Bottom (low liquidity) levels of the heatmap scale. By adjusting these colors, you can visually differentiate high liquidity zones from low liquidity areas, helping to pinpoint zones where price is more likely to encounter resistance or support.

These settings allow traders to tailor the Liquidity Heatmap to match their trading strategy, whether focused on short-term liquidity or broader market zones. By adjusting the look-back period, resolution, and color gradient, traders can enhance their view of liquidity flows on the chart, providing valuable context for market positioning and potential reversal zones.