LiquidityZones

LiquidityZones is a built-in TypeScript strategy from @tradejs/strategy-liquidity-zones.

It builds liquidity zones from swing highs/lows, waits for retests, and trades reactions from those zones.

Visual overview

The illustrations are schematic, not market data. Exact thresholds, confirmation rules, and risk parameters come from the active strategy config.

Entry Logic

1. Builds active liquidity zones from pivots.
2. Skips until a zone retest signal appears.
3. Selects LONG or SHORT side config from signal direction.
4. Builds a stop buffer from zone height and LIQUIDITY_ZONES_STOP_BUFFER_PCT.
5. Places stop outside the retested zone.
6. Computes target from LIQUIDITY_ZONES_TARGET_R_MULT.
7. Sizes quantity from MAX_LOSS_VALUE / riskDistance, using the RISK_FEE_RATE, RISK_SLIPPAGE_BPS, and RISK_MARKET_IMPACT_BPS estimates.
8. Returns entry with zone figures and liquidityZonesContext.

Entry codes:

• LIQUIDITY_ZONES_BULLISH_RETEST
• LIQUIDITY_ZONES_BEARISH_RETEST

Exits

When a position exists:

• LIQUIDITY_ZONES_OPPOSITE_RETEST_EXIT when LIQUIDITY_ZONES_EXIT_ON_OPPOSITE_RETEST=true and the opposite retest appears.
• otherwise POSITION_EXISTS.

Configuration keys

The keys are grouped by purpose. A listed _LONG or _SHORT key overrides the unsuffixed value for that direction.

Group	Keys	Purpose
Runtime and decision services	ENV, INTERVAL, MAKE_ORDERS, CLOSE_OPPOSITE_POSITIONS, BACKTEST_PRICE_MODE, AI_ENABLED, AI_MODE, MIN_AI_QUALITY, ML_ENABLED, ML_THRESHOLD	Select the runtime mode and candle interval, control order placement, and enable optional AI or ML decisions.
Shared indicators	MA_FAST, MA_MEDIUM, MA_SLOW, OBV_SMA, ATR, ATR_PCT_SHORT, ATR_PCT_LONG, BB, BB_STD, MACD_FAST, MACD_SLOW, MACD_SIGNAL	Set the periods used to build shared market context and signal filters.
Zone construction	LIQUIDITY_ZONES_PIVOT_LOOKBACK, LIQUIDITY_ZONES_SWING_AREA_MODE, LIQUIDITY_ZONES_FILTER_MODE, LIQUIDITY_ZONES_MIN_FILTER_VALUE, LIQUIDITY_ZONES_SHOW_SWING_HIGH_ZONES, LIQUIDITY_ZONES_SHOW_SWING_LOW_ZONES	Define swing zones, choose wick or full-range bounds, filter by count or volume, and enable high or low zones.
Zone age and retest	LIQUIDITY_ZONES_MIN_ZONE_AGE, LIQUIDITY_ZONES_MAX_AGE, LIQUIDITY_ZONES_REACTION_CLOSE_BEYOND_ZONE, LIQUIDITY_ZONES_REQUIRE_REACTION_BODY, LIQUIDITY_ZONES_MAX_RETEST_PENETRATION_PCT	Set the valid zone age and the required reaction and maximum penetration on retest.
Reaction quality	LIQUIDITY_ZONES_MIN_REACTION_CLOSE_DISTANCE_PCT, LIQUIDITY_ZONES_MAX_REACTION_CLOSE_DISTANCE_PCT, LIQUIDITY_ZONES_MAX_REACTION_CLOSE_DISTANCE_PCT_LONG, LIQUIDITY_ZONES_MAX_REACTION_CLOSE_DISTANCE_PCT_SHORT, LIQUIDITY_ZONES_REQUIRE_RANGE_RECLAIM, LIQUIDITY_ZONES_REQUIRE_SWEEP_RECLAIM, LIQUIDITY_ZONES_MIN_REJECTION_WICK_SCORE, LIQUIDITY_ZONES_MIN_VOLUME_REL20	Limit reaction distance and require range or sweep reclaim, rejection wick quality, and relative volume.
Target, stop, and exit	LIQUIDITY_ZONES_STOP_ZONE_BUFFER_MULT, LIQUIDITY_ZONES_STOP_BUFFER_PCT, LIQUIDITY_ZONES_TARGET_R_MULT, LIQUIDITY_ZONES_EXIT_ON_OPPOSITE_RETEST	Set the stop outside the zone, target distance, and opposite-retest exit.
Figures and side policy	LIQUIDITY_ZONES_MAX_FIGURE_ZONES, MAX_LOSS_VALUE, LONG.*, SHORT.*	Limit chart zones, set the loss budget, and configure each direction.

Signal Payload

The strategy stores:

• additionalIndicators.liquidityZonesContext
• zone figures from buildLiquidityZonesFigures(...)
• stop outside the retested zone
• one take-profit at the computed target

Common Skip Reasons

• NO_LIQUIDITY_ZONE_RETEST
• POSITION_EXISTS
• DEV_TRADE_COOLDOWN
• STRATEGY_DISABLED
• INVALID_STOP
• INVALID_QTY
• RISK_RATIO:<value>

Validation Notes

Compare wick_extremity vs full_range carefully. Zone width, provider wick quality, and retest penetration settings can change signal frequency.