Ultra Liquidity Heatmap v2 [JopAlgo]

Ultra Liquidity Heatmap v2 [JopAlgo] — map where price is likely to pause, ping, or pivot
Core idea

This study paints “liquidity shelves” on your chart—zones where unusually high traded volume likely clustered. In practice, those zones behave like magnets and barriers:

Magnets → price tends to revisit them.

Barriers → price often stalls / wicks there, or breaks only when there’s real pressure.

Think of each colored box as a footprint from prior transactions: “a lot of business got done here.” Price frequently checks back to these footprints to find counterparties again.

What you’ll see

Colored boxes that extend to the right from a bar’s range (high→low).
The color shows how extreme that bar’s volume was versus a long baseline.

Two streams of boxes:

High-side maintenance (built off highs)

Low-side maintenance (built off lows)
Both extend forward and update as price interacts.

Transparency control so you can keep price visible under the heatmap.

Read it fast → Where are the densest clusters of boxes? Are we approaching one from above/below? Did we wick into a box and snap back, or accept inside it?

What “liquidity” means here (plain language)

In order to move, price needs counterparties.

Areas that printed unusually high volume in the past are places where both sides engaged.

Those areas often become future decision spots: either absorb incoming orders (hold) or reject them (wick/reverse) or, if overwhelmed, price pushes through and trends.

This indicator does not show the live order book. It uses a robust proxy: statistical outliers in completed volume to infer where the book tended to be deep (and may be again).

Color scale (how extremes are decided)

We compute a Z-score for the previous bar’s volume against a 610-bar baseline:

Z > 4.0 → Extra High (default yellow) → major shelf

Z > 2.5 → High (default orange) → strong shelf

Z > 1.0 → Medium (default white)

Z > −0.5 → Normal (default lime)

else → Low (default aqua)

You can toggle which tiers to show and use gradient coloring to see intensity inside a tier.

Practical tip → For a clean map, start with Extra High and High only. Add Medium on thin markets or higher timeframes.

How the boxes behave

Each detected bar spawns a box from that bar’s high to low and extends it right.

As new bars print:

If price pushes above a high-based box, that box is retired (it didn’t hold).

If price pushes below a low-based box, that box is retired.

Otherwise, the box can adjust to the latest interaction so it stays relevant to the current range.

Meaning → The map evolves with price. You always see the still-relevant shelves, not stale ones.

The three main behaviors at a shelf

Magnet → price drifts into the box (fills in), then decides: continue or reverse.

Reject → sharp wick into the box and immediate reversal → great location to fade if other signals agree.

Accept → clean close inside/through the box and follow-through → look for break-and-retest to trade with the move.

Decide with arrows →

Approach from above → watch for reject ↘ or accept ↘

Approach from below → watch for reject ↗ or accept ↗

How to trade it (simple playbook)
1) Frame the day / swing

Map Extra High / High shelves on your higher TF (e.g., 4H / 1D).

Note clusters (multiple boxes overlapping) → stronger magnets.

2) Execute at the shelf, not mid-air

Continuation
→ Price accepts ↗ through a shelf, then retests from above and holds → long toward the next shelf.
→ Mirror ↘ for shorts.

Reversion
→ Price tags a shelf and rejects ↘ (coming from above) or rejects ↗ (from below) with confirmation → fade back to the prior range node.

3) Confirm the decision

CVDv1 (optional) →
Accept = taker flow with the break (Alignment OK).
Reject = taker attempts absorbed at the shelf (Absorption).

Volume Profile v3.2 →
Prefer trades when shelves align with VAH/VAL/POC/LVNs (location first).

Anchored VWAP →
Reclaim/reject at AVWAP that sits inside or on the edge of a shelf is high-quality timing.

4) Risk & targets

Stops → just beyond the shelf extreme you used for entry (if it’s a reject) or under/over the retest (if it’s an accept).

Targets → the next shelf; partials at intermediate VP nodes; trail if shelves are stair-stepping.

Settings that matter (and how to tune)

BG Transparency → make boxes readable without hiding price.

Box Index → where a box begins on the x-axis.

Set to 501 to anchor boxes exactly at their creation bar.

Lower values shift the start to keep the chart tidy on fast TFs.

Show tiers → start with Extra High / High; add Medium only if the map looks sparse.

Gradient coloring → keep on to see intensity; turn off for a flatter, cleaner palette.

Reading examples (quick arrow notes)

Approach from below → accept ↗ → retest holds ↗ → continuation long to next shelf.

Approach from above → wick inside → reject ↘ → rotation back toward prior node.

Multiple shelves stacked tight → expect pause / chop; wait for clear accept ↗/↘ plus retest.

Common mistakes this helps you avoid

Trading mid-range with no shelf in play.

Fading a shelf without a reject ↘ / ↗ confirmation.

Chasing a break without an accept ↗/↘ + retest.

Treating any colored box as equal—Extra High matters more than Normal/Low.

Best combos (kept simple)

Volume Profile v3.2 [JopAlgo] → shelves that coincide with VAH/VAL/POC/LVNs are higher-probability decision spots.

Anchored VWAP [JopAlgo] → reclaimed/rejected AVWAP inside a shelf = strong confirmation.

CVDv1 [JopAlgo] (optional) → confirms accept ↗/↘ (with flow) or reject (absorption).

FAQ (quick clarity)

Is this the live order book? → No. It’s a volume-based proxy for likely liquidity.

Why do boxes disappear? → When price invalidates them (pushes past their boundary), they’re retired—keeps the map current.

Which timeframe? → Build the map on your execution TF (e.g., 4H/1H) and confirm with one higher (1D/4H). Thin markets may benefit from adding Medium tiers.

Disclaimer

This indicator and description are for education only, not financial advice. Trading involves risk; results vary by market, venue, and settings. Test first, act at defined levels, and manage risk. No guarantees or warranties are provided.