Overview:

The Smart Wick Analyzer (SWA) is designed to help traders identify potential liquidity grabs and high-probability reversal zones based on extended wicks combined with volume and trend confirmation. It visually marks significant upper and lower wick events and highlights possible turning points in the market using wick-to-body ratios and other market context filters.

How It Works:

This indicator evaluates wick-to-body ratios to detect candles with disproportionately long upper or lower wicks — a common signature of stop hunts or liquidity grabs. To improve signal reliability, it incorporates:
• Trend Filter using a Simple Moving Average (SMA).
• Volume Confirmation relative to average volume.
• Cooldown Period to avoid repetitive signals in tight price zones.

When all conditions align, the indicator plots a Buy Signal (triangle up) for long lower wicks in an uptrend, and a Sell Signal (triangle down) for long upper wicks in a downtrend.

Additionally, it draws open/close dotted lines extending from signal candles to provide context for future price interaction zones.

Key Features:
• Wick-to-body ratio detection logic.
• Trend confirmation using user-defined lookback SMA.
• Volume threshold multiplier filter.
• Cooldown mechanism to prevent signal clustering.
• Visual cues: Triangles, bar coloring, and signal lines.
• Built-in alert conditions for Buy/Sell signal detection.
• Clean chart representation with minimal noise.

How to Use:
• Use it as a reversal confirmation tool near support/resistance or liquidity zones.
• Combine with your existing price action or structure-based strategies.
• Works effectively across timeframes, but best results are often seen on 15min to 1H charts.
• Ideal for discretionary scalpers or swing traders looking to refine entry points.

Why This Combination?

Wick traps alone can be misleading. By combining price wick behavior, trend alignment, and volume confirmation, this tool aims to filter out noise and highlight only the most contextually relevant wick-based reversal signals. The cooldown period further enhances signal quality by avoiding back-to-back triggers.

Why It’s Worth Using:

Smart Wick Analyzer is not just a wick detector—it’s a multi-layered reversal signal filter that offers clear visual guidance without cluttering your charts. Whether you’re catching traps or refining your entries, it helps add structure and consistency to your decision-making.

Note:

This script follows TradingView’s publishing guidelines. It does not include performance guarantees or promotional content and is designed for educational and analytical purposes only.