# Liquidity Concept

This feature detects and highlights key liquidity zones. 

There are two types of liquidity: buy-side liquidity and sell-side liquidity. 

Buy-side liquidity represents a level on the chart where short sellers would typically place their stop-loss orders. 

Sell-side liquidity indicates a level on the chart where long-biased traders would set their stop-loss orders.

<div align="left"><figure><img src="/files/ZWOBxy4rQ6EeufmM0GRl" alt=""><figcaption></figcaption></figure></div>

These areas often act as support or resistance levels and can present potential entry opportunities. Some price actions when a Liquidity Zone occurs include the following:

Reversal: Typically, the price may reverse and move in the opposite direction, seeking the opposing liquidity zone.

<figure><img src="/files/YNZkzMj7H3DUc80jitTv" alt=""><figcaption></figcaption></figure>

Continuation: When a liquidity zone is broken, it signals that the price action is likely to continue following the prevailing trend.

<div align="left"><figure><img src="/files/yBgdJzPNgpFW6L7oSwJL" alt=""><figcaption></figcaption></figure></div>

<div align="left"><figure><img src="/files/fY0uy6LZgmYbpa24vXBP" alt=""><figcaption></figcaption></figure></div>

| Method           | Description                                                |
| ---------------- | ---------------------------------------------------------- |
| Liquidity Detect | Display the Liquidity zone in green when the price enters. |
| Lines            | Display the liquidity line on the chart.                   |


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