Liquidity Break Probability [PhenLabs]

📊 Liquidity Break Probability [PhenLabs]
Version: PineScript™ v6

The Liquidity Break Probability indicator revolutionizes how traders approach liquidity levels by providing real-time probability calculations for level breaks. This advanced indicator combines sophisticated market analysis with machine learning inspired probability models to predict the likelihood of high/low breaks before they happen.

Unlike traditional liquidity indicators that simply draw lines, LBP analyzes market structure, volume profiles, momentum, volatility, and sentiment to generate dynamic break probabilities ranging from 5% to 95%. This gives traders unprecedented insight into which levels are most likely to hold or break, enabling more confident trading decisions.

🚀 Points of Innovation

• Advanced 6-factor probability model weighing market structure, volatility, volume, momentum, patterns, and sentiment
  
• Real-time probability updates that adjust as market conditions change
  
• Intelligent trading style presets (Scalping, Day Trading, Swing Trading) with optimized parameters
  
• Dynamic color-coded probability labels showing break likelihood percentages
  
• Professional tiered input system - from quick setup to expert-level customization
  
• Smart volume filtering that only highlights levels with significant institutional interest
  

🔧 Core Components

• Market Structure Analysis: Evaluates trend alignment, level strength, and momentum buildup using EMA crossovers and price action
  
• Volatility Engine: Incorporates ATR expansion, Bollinger Band positioning, and price distance calculations
  
• Volume Profile System: Analyzes current volume strength, smart money proxies, and level creation volume ratios
  
• Momentum Calculator: Combines RSI positioning, MACD strength, and momentum divergence detection
  
• Pattern Recognition: Identifies reversal patterns (doji, hammer, engulfing) near key levels
  
• Sentiment Analysis: Processes fear/greed indicators and market breadth measurements
  

🔥 Key Features

• Dynamic Probability Labels: Real-time percentage displays showing break probability with color coding (red >70%, orange >50%, white <50%)
  
• Trading Style Optimization: One-click presets automatically configure sensitivity and parameters for your trading timeframe
  
• Professional Dashboard: Live market state monitoring with nearest level tracking and active level counts
  
• Smart Alert System: Customizable proximity alerts and high-probability break notifications
  
• Advanced Level Management: Intelligent line cleanup and historical analysis options
  
• Volume-Validated Levels: Only displays levels backed by significant volume for institutional-grade analysis
  

🎨 Visualization

• Recent Low Lines: Red lines marking validated support levels with probability percentages
  
• Recent High Lines: Blue lines showing resistance zones with break likelihood indicators
  
• Probability Labels: Color-coded percentage labels that update in real-time
  
• Professional Dashboard: Customizable panel showing market state, active levels, and current price
  
• Clean Display Modes: Toggle between active-only view for clean charts or historical view for analysis
  

📖 Usage Guidelines
Quick Setup

• Trading Style Preset
• Default: Day Trading
  
• Options: Scalping, Day Trading, Swing Trading, Custom
  
• Description: Automatically optimizes all parameters for your preferred trading timeframe and style
  
• Show Break Probability %
• Default: True
  
• Description: Displays percentage labels next to each level showing break probability
  
• Line Display
• Default: Active Only
  
• Options: Active Only, All Levels
  
• Description: Choose between clean active-only view or comprehensive historical analysis
  

Level Detection Settings

• Level Sensitivity
• Default: 5
  
• Range: 1-20
  
• Description: Lower values show more levels (sensitive), higher values show fewer levels (selective)
  
• Volume Filter Strength
• Default: 2.0
  
• Range: 0.5-5.0
  
• Description: Controls minimum volume threshold for level validation
  

Advanced Probability Model

• Market Trend Influence
• Default: 25%
  
• Range: 0-50%
  
• Description: Weight given to overall market trend in probability calculations
  
• Volume Influence
• Default: 20%
  
• Range: 0-50%
  
• Description: Impact of volume analysis on break probability
  

✅ Best Use Cases

• Identifying high-probability breakout setups before they occur
  
• Determining optimal entry and exit points near key levels
  
• Risk management through probability-based position sizing
  
• Confluence trading when multiple high-probability levels align
  
• Scalping opportunities at levels with low break probability
  
• Swing trading setups using high-probability level breaks
  

⚠️ Limitations

• Probability calculations are estimations based on historical patterns and current market conditions
  
• High-probability setups do not guarantee successful trades - risk management is essential
  
• Performance may vary significantly across different market conditions and asset classes
  
• Requires understanding of support/resistance concepts and probability-based trading
  
• Best used in conjunction with other analysis methods and proper risk management
  

💡 What Makes This Unique

• Probability-Based Approach: First indicator to provide quantitative break probabilities rather than simple S/R lines
  
• Multi-Factor Analysis: Combines 6 different market factors into a comprehensive probability model
  
• Adaptive Intelligence: Probabilities update in real-time as market conditions change
  
• Professional Interface: Tiered input system from beginner-friendly to expert-level customization
  
• Institutional-Grade Filtering: Volume validation ensures only significant levels are displayed
  

🔬 How It Works
1. Level Detection:

• Identifies pivot highs and lows using configurable sensitivity settings
  
• Validates levels with volume analysis to ensure institutional significance
  

2. Probability Calculation:

• Analyzes 6 key market factors: structure, volatility, volume, momentum, patterns, sentiment
  
• Applies weighted scoring system based on user-defined factor importance
  
• Generates probability score from 5% to 95% for each level
  

3. Real-Time Updates:

• Continuously monitors price action and market conditions
  
• Updates probability calculations as new data becomes available
  
• Adjusts for level touches and changing market dynamics
  

💡 Note: This indicator works best on timeframes from 1-minute to 4-hour charts. For optimal results, combine with proper risk management and consider multiple timeframe analysis. The probability calculations are most accurate in trending markets with normal to high volatility conditions.