Liquidity Sell Signal V2 [StrategyLAB_]

Liquidity Sell Signal V2

Liquidity Sell Signal V2 is a TradingView indicator designed to help you spot high-probability Sell setups (reversal / pullback entries) using liquidity concepts around Buy-Side Liquidity (BSL) , combined with a bearish confirmation candle pattern.
XAUUSD
This script will:

Automatically detect and plot BSL (Swing High) levels based on your selected Swing Strength.

Visually “fade” levels once price has broken above them.

Print a down triangle when a valid Bearish Liquidity Triangle forms at a qualified BSL area.

How it works
1) Identify Buy-Side Liquidity (BSL)

The indicator detects pivot highs using Swing Strength.

Each pivot high is drawn as a horizontal BSL level, keeping up to Max Buy Side Liquidity (BSL) Levels.

2) Bearish confirmation (Liquidity reaction)

A Sell signal triggers only when a bearish candle structure appears, suggesting strong selling pressure and a potential reversal after a liquidity sweep near/above BSL.

3) Noise filter (Avoid “body-cut” levels)

The script checks whether the BSL level has been repeatedly cut through candle bodies in prior bars.

If the level is considered “dirty” based on olderBodyLookback, it is filtered out to reduce false signals.

How to use
Suggested settings

Swing Strength

Lower (5–8): more levels, faster signals, but more noise.

Higher (12–20): fewer levels, cleaner zones, better for swing.

Max BSL Levels: increase if you want to keep more historical liquidity levels.

Filter lookback older bodies: increase to filter more aggressively (fewer signals, cleaner quality).

Entry idea (example)

Wait for a Sell triangle to appear (signal prints on candle close).

Prefer signals that align with:

a major swing high / key resistance,

clear rejection (wick / bearish reaction),

confluence with HTF supply, trendline, session, etc.

SL/TP idea (example)

SL: above the most recent swing high / above the BSL zone with a safety buffer.

TP: toward imbalance fill, previous lows (SSL), or a fixed RR such as 1:2 / 1:3.

Important notes

This is a probability tool, not a guaranteed signal.

Best results come from combining with market structure (BOS/CHOCH), supply/demand, HTF levels, and session context.

The script uses barstate.isconfirmed, so signals appear only after the candle closes (non-repainting signals).
EURUSD