Buyside & Sellside Liquidity and FOMO & PANİK]

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We Added Advanced Features to LuxAlgo’s Buy-Side and Sell-Side Liquidity Indicator

Buy-Side and Sell-Side Liquidity (Liquidity Hunt) indicators are an important tool for understanding market maker manipulations and analyzing price movements in high-volume areas. This indicator from LuxAlgo allows users to better evaluate the market’s liquidity flow. However, we have made some strategic improvements and additions to further enhance the functionality of this powerful tool.

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Features We Added to the Indicator

1. Liquidity Threshold and Analysis by Time Frames

The user can analyze liquidity movements in different time frames by determining short, medium and long-term periods.

Thanks to the Liquidity Threshold (%) parameter, long (buy) and short (sell) levels are determined according to price change rates.

Volume threshold controls are applied for each period and only high volume movements are taken into account.

2. Detection of Long and Short Liquidity Zones

Buy-Side (Long) Liquidity Zones: Long entry levels below the price are determined and reaction signals are created when the price reaches this level.

Sell-Side (Short) Liquidity Zones: Short entry levels above the price are determined and the levels are visualized on the chart.

These zones are used to detect market maker manipulations in places where liquidity traps may occur.

3. Coloring of High Volume Candles

With volume analysis, high volume candles are marked with different colors to observe the dynamics of price movements more clearly.

For example, candles exceeding volume threshold levels are highlighted with distinct colors such as white, yellow or blue.

4. Analysis of Wick and Volume-Based Long/Short Traps

Long trap and short trap traps are detected based on the length ratios of candle shadows (wick), ATR (Average True Range) and volume change.

These traps are clearly marked on the chart and supported by market psychology signals such as FOMO (fear of missing out) and Panic to the user.

5. Proximity to Liquidity Zones and Alarm Systems

We have added an algorithm that measures how close the price is to the specified liquidity zones. In this way:

Price movements that are less than 2% away from the upper liquidity zone are analyzed.

The same methodology is used for proximity to the middle liquidity zone and lower liquidity zone.

The user is warned when a long trap or short trap occurs with the alarm system.

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FOMO and Panic Algorithm

These updates include additional parameters to analyze investor psychology:

FOMO (Fear of Missing Out):

A FOMO signal is generated when the RSI level is high, the price is near the upper or middle liquidity zones, and sudden price/volume increases are seen.

This signal allows the investor to avoid making unconscious purchases.

Panic:

A panic signal is triggered when the RSI level is low, the price is near the lower or middle liquidity zones, and sudden decreases are seen.

This is designed to prevent investors from selling hastily.

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Benefits of the Developments

1. Prevention of Manipulations:

Price movements are analyzed according to liquidity zones, aiming to protect investors against market maker manipulations.

2. Stronger Strategy with Reaction Levels:

Visualization of long and short liquidity zones provides more reliable signals in trading strategies.

3. Understanding Psychological Barriers:

The impact of investor behavior on the market is better analyzed with FOMO and Panic signals.

4. Advanced Filtering Based on Volume and Volatility:

Volume and volatility analysis minimizes false signals.

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Conclusion

With these updates, LuxAlgo’s original Buy-Side & Sell-Side Liquidity indicator has been made a more powerful tool. Users can make more informed trades by identifying important levels that market makers may target. Combining multiple variables such as volume, liquidity, RSI and psychological barriers, this system provides a more robust analysis, especially in the cryptocurrency market.