jhehli Liquidity

What are BSL and SSL?
In the context of Smart Money Concepts, liquidity simply refers to pending orders—specifically Stop Losses and Buy/Sell Stop orders—resting above old highs and below old lows.

BSL (Buy-Side Liquidity): This is found above Swing Highs. Retail traders who are short the market will place their "Buy Stop" protective orders here. Additionally, breakout traders place "Buy Limit" orders here. Smart Money views this area as a pool of willing buyers. To fill large sell orders, institutions must drive price up into this liquidity to pair their massive sell interest with these buy stops.

SSL (Sell-Side Liquidity): This is found below Swing Lows. Retail traders who are long the market place their "Sell Stop" protective orders here. Smart Money targets these levels to accumulate long positions. They need the market to sell off into these levels so they can buy from the willing sellers at a discount.

How this Indicator Works
This tool automates the process of market structure analysis by identifying key Swing Highs and Swing Lows.

Detection: It scans price action to find fractal highs and lows (classic swing points) where price has rejected a level.

Visualization: It projects a line from these points, clearly marking where the "stops" are likely residing.

Liquidity Raids: When price pierces these levels, it is considered a "Liquidity Raid" or "Stop Hunt."

How to Use This in Your Trading
Do not treat these lines simply as Support and Resistance. In the ICT methodology, old highs and lows are targets, not barriers.

For Reversals: Wait for a "Turtle Soup" or "Judas Swing." This occurs when price aggressively expands into a BSL or SSL level to trigger stops, only to quickly reverse back into the trading range. This indicates that Smart Money has finished their accumulation or distribution.

For Bias: If the higher timeframe trend is Bullish, expect SSL to be raided to fuel the move, while BSL becomes the target (Draw on Liquidity).

By using this indicator, you remove the guesswork of manually marking every swing point, allowing you to focus on price action and the reaction at these critical liquidity pools.