Institutional Liquidity Indicator for Large Caps & ETFs for Large Caps & ETFs

The Institutional Liquidity Indicator for Large Caps & ETFs is designed to help traders identify areas where institutional buying and selling occur. By analyzing support and resistance levels, large block trades, relative volume, and bid/ask spreads, this tool highlights key liquidity zones that can help traders make informed trading decisions.

How It Works

This study incorporates several critical data points to assess institutional activity:

• Support & Resistance Levels: Detects key levels based on a 20-bar rolling high/low range, shown as yellow horizontal lines.
• Large Block Trades: Identifies trades over 6,000 shares, with red arrows for selling pressure and green for buying.
• Relative Volume (RVOL) Spikes: Highlights strong institutional activity when volume exceeds the average (RVOL > 1.2).
• Bid/Ask Spread Analysis: Indicates liquidity conditions, with yellow for tight spreads signaling stability.

How to Use This Study

Trade Setup Guidelines:

• ✅ Long Entry (Buying): Look for a yellow support line, green up arrows, and a bullish reversal candle. Increased RVOL confirms strength.
• ✅ Short Entry (Selling): Spot a yellow resistance line, red down arrows, and a bearish rejection candle. High RVOL enhances confidence.
• 🚫 No Trade Zone: If price is between liquidity zones without strong signals, avoid trading.

Benefits of This Study

• ✔ Enhances Trade Accuracy: Focuses on real liquidity zones where institutions are active.
• ✔ Reduces False Signals: Filters out noise by emphasizing significant volume shifts.
• ✔ Improves Risk Management: Helps define stop-loss and take-profit areas based on institutional activity.
• ✔ Works on Large Cap Stocks & ETFs: Ideal for tickers like SPY, QQQ, AAPL, NVDA, TSLA, and more.

Customization Options

• Timeframe Selection: Adjust period to AggregationPeriod.HOUR, AggregationPeriod.DAY, etc.
• Show/Hide Support & Resistance: Toggle visibility of yellow liquidity lines.
• Adjust Block Trade Threshold: Modify settings to detect only larger institutional trades.
• Filter by Symbol: Customize the script to track liquidity in specific stocks or ETFs.

Final Thoughts

By following the rules of this Indicator, traders can avoid random trades and focus on high-probability setups where institutions are active. This tool helps traders align with smart money, improving trade execution and confidence.

🚀 Use this guide to refine your trading strategy and maximize your edge!