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LiquidityZones

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

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

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, with FEE_PERCENT buffer.
  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.

Config Parameters​

Zone model:

  • LIQUIDITY_ZONES_PIVOT_LOOKBACK
  • LIQUIDITY_ZONES_SWING_AREA_MODE (wick_extremity or full_range)
  • LIQUIDITY_ZONES_FILTER_MODE (count or volume)
  • LIQUIDITY_ZONES_MIN_FILTER_VALUE
  • LIQUIDITY_ZONES_SHOW_SWING_HIGH_ZONES
  • LIQUIDITY_ZONES_SHOW_SWING_LOW_ZONES
  • LIQUIDITY_ZONES_MAX_AGE
  • LIQUIDITY_ZONES_REACTION_CLOSE_BEYOND_ZONE
  • LIQUIDITY_ZONES_REQUIRE_REACTION_BODY
  • LIQUIDITY_ZONES_MAX_RETEST_PENETRATION_PCT
  • LIQUIDITY_ZONES_STOP_ZONE_BUFFER_MULT
  • LIQUIDITY_ZONES_STOP_BUFFER_PCT
  • LIQUIDITY_ZONES_TARGET_R_MULT
  • LIQUIDITY_ZONES_EXIT_ON_OPPOSITE_RETEST
  • LIQUIDITY_ZONES_MAX_FIGURE_ZONES

Shared groups:

  • runtime: ENV, INTERVAL, MAKE_ORDERS, BACKTEST_PRICE_MODE
  • AI/ML: AI_ENABLED, AI_MODE, MIN_AI_QUALITY, ML_ENABLED, ML_THRESHOLD
  • risk: FEE_PERCENT, MAX_LOSS_VALUE, LONG.*, SHORT.*
  • shared indicators: MA, OBV, ATR, BB, MACD fields

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.