Institutional Liquidity Engine [Pointalgo]

PointAlgo – Institutional Liquidity Engine is a price-overlay market structure and liquidity visualization tool designed to help traders analyze supply & demand behavior, liquidity zones, and price inefficiencies using rule-based logic inspired by modern market structure concepts.
This indicator focuses on where price aggressively moved from, where liquidity may remain, and how those zones evolve over time, without generating direct buy/sell signals.
The script is fully open-source, free to use, and intended strictly for educational and analytical purposes.

Core Analytical Concepts :

This indicator visualizes:

• Market structure pivot points
  
• High-volatility displacement zones
  
• Supply & demand (order-block–like) areas
  
• Liquidity mitigation behavior
  
• Fair Value Gaps (price inefficiencies)
  
• Zone lifecycle management (active vs mitigated)
  

It does not claim to detect actual institutional orders.

How the Indicator Works :

• Volatility-Filtered Structure Detection
  
• Uses ATR-based volatility filtering
  
• Zones are only created when price displacement exceeds normal volatility
  
• Helps reduce noise from weak or random candles
  

Demand & Supply Zone Identification
A demand zone is detected when:

• A pivot low forms
  
• The candle before the move is bearish
  
• Price rapidly expands upward after the pivot
  
• Volatility conditions are met
  

These zones highlight areas where price previously reacted strongly upward.

Supply Zones (Bearish)
A supply zone is detected when:

• A pivot high forms
  
• The candle before the move is bullish
  
• Price drops aggressively after the pivot
  
• Volatility conditions are met
  

These zones highlight areas where selling pressure previously dominated.

Smart Mitigation Engine (Automatic Zone Management)
One of the key design goals of this indicator is chart cleanliness.

• Each zone is continuously monitored:
  
• If price returns into the zone, it is considered mitigated
  

Users can choose to:

• Automatically remove mitigated zones
  
• Or gray them out for historical reference
  

Old and irrelevant zones far from price are also automatically deleted.
This prevents the chart from filling with outdated boxes.

Fair Value Gap (Liquidity Void) Detection
Optional Fair Value Gaps (FVGs) are displayed when:

• Price moves so fast that wicks do not overlap
  
• The gap size exceeds a user-defined ATR threshold
  

These gaps visually represent price inefficiencies where liquidity may be revisited.
Types:
🔵 Bullish FVG
🟠 Bearish FVG

Real-Time Dashboard
A small dashboard displays:

• Active demand zones
  
• Active supply zones
  

This provides a quick structural overview without scanning the entire chart.

Customization Options
Users can configure:

• Pivot sensitivity
  
• Zone colors
  
• Mitigation behavior
  
• Fair Value Gap visibility
  
• Minimum gap size (ATR-based)
  

This makes the indicator adaptable across:

• Forex
  
• Indices
  
• Crypto
  
• Stocks
  
• Futures
  

How to Use This Indicator

This tool is best used for:

• Market structure analysis
  
• Supply & demand studies
  
• Liquidity mapping
  
• Confluence with price action
  
• Higher-timeframe bias alignment
  

Recommended complementary tools:

• Support & Resistance
  
• Trend analysis
  
• Volume profiling
  
• Risk management rules
  

Important Disclaimer
This indicator is provided for educational and analytical purposes only.
It does not provide trading signals, investment advice, or profit guarantees.
Market structure and liquidity concepts are interpretive in nature.
Users are solely responsible for their own trading decisions and risk management