# Liquidity Zone Reaction Indicator

Automatically detects liquidity zones on a higher timeframe and triggers alerts when price returns to these zones with a confirmed reversal pattern.

Canonical: https://prismaticalgos.com/compendium/algo/242-liquidity-zone-reaction-indicator
Record ID: 242
Catalog rank: 718 (reading order, not performance)
Snapshot: 2026-10-31 15:46 UTC
Family: Price Action & Market Structure (E)
Source: https://www.mql5.com/en/articles/21581
Evidence label (unverified): source_code

## Scope and limitations

These are machine-extracted research records, not verified trading systems. Catalog rank measures specification detail and claimed evidence, not profitability. The catalog extraction pipeline did not independently backtest these records. Its separate selected testing ledger does not validate the wider corpus. Rules, labels and parameters can be incomplete or wrong; consult the original source and its reuse terms.

No endorsement, ownership claim or source-code reuse permission is implied.

## Extraction warnings

No automated warnings recorded; this is not validation.

## Recorded profile

- symbols: any
- timeframes: H1
- sessions: any
- market_regime: any

## Indicators

- Liquidity Zone Indicator: {"BufferStyle": "STYLE_DASH", "BufferWidth": 1, "DemandZoneColor": "clrLimeGreen", "ExtendBars": 50, "FillRectangles": true, "LookbackBars": 1000, "RatioMultiplier": 3.0, "ShowBuffers": true, "SupplyZoneColor": "clrRed", "ZoneOpacity": 40}; applied to: close

## Recorded long-entry rules

- price range intersects with a higher timeframe zone and a confirmed engulfing candle pattern

## Recorded short-entry rules

- price range intersects with a higher timeframe zone and a confirmed engulfing candle pattern

## Recorded exit rules

- not explicitly stated in the source

## Recorded filters

- not explicitly stated in the source

## Risk controls

- Stop loss: not explicitly stated in the source
- Take profit: not explicitly stated in the source
- Position sizing: not explicitly stated in the source