PROTECTED SOURCE SCRIPT
Majors Liquidity Fade [Plazo Sullivan Roche Capital]
Purpose:
This indicator exploits the two-phase structure of the New York session — early liquidity sweeps (fakeouts) followed by momentum continuations aligned with institutional order flow.
Liquidity Fade (8:00–10:30 AM ET)
Detects stop hunts beyond Asian/London highs or lows.
Looks for weak momentum and wick dominance to confirm fading exhaustion.
Entry bias is counter-trend for quick mean reversion.
Continuation Phase (10:30 AM–2:00 PM ET)
Once early liquidity is absorbed, the algorithm looks for price reclaiming VWAP or breaking a minor structure.
It then signals trades in direction of higher timeframe bias.
This captures institutional trend continuation during peak U.S. volume.
Result:
Two distinct opportunities per NY session:
Fade setups exploit false breaks.
Continuation setups ride institutional expansion.
Bias Filters & Context Alignment
H1 20 EMA
Determines short-term directional bias. Prevents counter-bias entries.
HTF Filter (H4 & Daily)
Confirms alignment using 200/20 SMA and 50 SMA. Matches trades with macro direction.
DXY Strength Check
Optional confirmation (USD trending). Adds macroeconomic correlation logic.
VWAP Mean Deviation
Measures institutional value zones via session VWAP ±σ. Detects overextensions and reversions.Bias Filters & Context Alignment
H1 20 EMA
Determines short-term directional bias. Prevents counter-bias entries.
HTF Filter (H4 & Daily)
Confirms alignment using 200/20 SMA and 50 SMA. Matches trades with macro direction.
DXY Strength Check
Optional confirmation (USD trending). Adds macroeconomic correlation logic.
VWAP Mean Deviation
Measures institutional value zones via session VWAP ±σ. Detects overextensions and reversions.
Protection Mechanisms
Session Gating
Limits entries to NY liquidity windows (8:00–14:00 ET). Avoids low-volume fakeouts.
ADR Guard
Disables signals if intraday range > 1.5× ADR. Filters out overextended or news-driven days.
CVD Divergence
Confirms price–volume divergence at liquidity grabs. Detects fake moves and exhaustion.
Small Body + Wick Confirmation
Ensures trap candle characteristics before signaling. Increases fade accuracy.
RSI Confirmation (5m)
Confirms momentum shift (above/below 50). Adds order-flow timing filter.
News Safety Toggle
Manually pause entries pre-FOMC/NFP/etc. Prevents false signals from macro spikes.
How to Read the Chart
🔺 Green Triangle Fade Long (after sweep of low) Countertrend buy scalp
🔻 Red Triangle Fade Short (after sweep of high) Countertrend short scalp
🟢 Green Circle Continuation Long Trend-following buy
🔴 Maroon Circle Continuation Short Trend-following sell
⚙️ Best Practices
✅ Trade the NY session only.
The logic is calibrated for U.S. market liquidity between 8:00–14:00 ET.
✅ Check higher-timeframe alignment.
Only take trades aligned with HTF bias and VWAP position.
✅ Use 0.5% or less risk per trade.
Combine with external execution rules (e.g., partials at VWAP return, full close at ADR midpoint).
✅ Avoid high-impact news.
Pause News Safety manually around CPI, FOMC, or NFP.
✅ Prioritize confluence.
Best trades occur when:
Fade aligns with CVD divergence + wick dominance.
Continuation aligns with VWAP reclaim + RSI > 50 (for longs).
✅ Ideal pairs:
EUR/USD, GBP/USD, XAU/USD, and NASDAQ (US100 CFD).
Avoid exotic or illiquid pairs.
🧭 Summary Formula
Institutional Flow = (Bias Alignment) × (Liquidity Sweep) × (Confirmation Signals)
When all three align, the setup is statistically favorable.
This indicator exploits the two-phase structure of the New York session — early liquidity sweeps (fakeouts) followed by momentum continuations aligned with institutional order flow.
Liquidity Fade (8:00–10:30 AM ET)
Detects stop hunts beyond Asian/London highs or lows.
Looks for weak momentum and wick dominance to confirm fading exhaustion.
Entry bias is counter-trend for quick mean reversion.
Continuation Phase (10:30 AM–2:00 PM ET)
Once early liquidity is absorbed, the algorithm looks for price reclaiming VWAP or breaking a minor structure.
It then signals trades in direction of higher timeframe bias.
This captures institutional trend continuation during peak U.S. volume.
Result:
Two distinct opportunities per NY session:
Fade setups exploit false breaks.
Continuation setups ride institutional expansion.
Bias Filters & Context Alignment
H1 20 EMA
Determines short-term directional bias. Prevents counter-bias entries.
HTF Filter (H4 & Daily)
Confirms alignment using 200/20 SMA and 50 SMA. Matches trades with macro direction.
DXY Strength Check
Optional confirmation (USD trending). Adds macroeconomic correlation logic.
VWAP Mean Deviation
Measures institutional value zones via session VWAP ±σ. Detects overextensions and reversions.Bias Filters & Context Alignment
H1 20 EMA
Determines short-term directional bias. Prevents counter-bias entries.
HTF Filter (H4 & Daily)
Confirms alignment using 200/20 SMA and 50 SMA. Matches trades with macro direction.
DXY Strength Check
Optional confirmation (USD trending). Adds macroeconomic correlation logic.
VWAP Mean Deviation
Measures institutional value zones via session VWAP ±σ. Detects overextensions and reversions.
Protection Mechanisms
Session Gating
Limits entries to NY liquidity windows (8:00–14:00 ET). Avoids low-volume fakeouts.
ADR Guard
Disables signals if intraday range > 1.5× ADR. Filters out overextended or news-driven days.
CVD Divergence
Confirms price–volume divergence at liquidity grabs. Detects fake moves and exhaustion.
Small Body + Wick Confirmation
Ensures trap candle characteristics before signaling. Increases fade accuracy.
RSI Confirmation (5m)
Confirms momentum shift (above/below 50). Adds order-flow timing filter.
News Safety Toggle
Manually pause entries pre-FOMC/NFP/etc. Prevents false signals from macro spikes.
How to Read the Chart
🔺 Green Triangle Fade Long (after sweep of low) Countertrend buy scalp
🔻 Red Triangle Fade Short (after sweep of high) Countertrend short scalp
🟢 Green Circle Continuation Long Trend-following buy
🔴 Maroon Circle Continuation Short Trend-following sell
⚙️ Best Practices
✅ Trade the NY session only.
The logic is calibrated for U.S. market liquidity between 8:00–14:00 ET.
✅ Check higher-timeframe alignment.
Only take trades aligned with HTF bias and VWAP position.
✅ Use 0.5% or less risk per trade.
Combine with external execution rules (e.g., partials at VWAP return, full close at ADR midpoint).
✅ Avoid high-impact news.
Pause News Safety manually around CPI, FOMC, or NFP.
✅ Prioritize confluence.
Best trades occur when:
Fade aligns with CVD divergence + wick dominance.
Continuation aligns with VWAP reclaim + RSI > 50 (for longs).
✅ Ideal pairs:
EUR/USD, GBP/USD, XAU/USD, and NASDAQ (US100 CFD).
Avoid exotic or illiquid pairs.
🧭 Summary Formula
Institutional Flow = (Bias Alignment) × (Liquidity Sweep) × (Confirmation Signals)
When all three align, the setup is statistically favorable.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.