Weak Highs and Weak Lows as Liquidity References

Treat unprotected or repeatedly unclaimed swing extremes as potential liquidity objectives, not certainties.

What makes an extreme “weak”?

In the source framework, an unsuccessful swing or a sequence of nearby unswept extremes can be interpreted as liquidity left behind by the current move. For automation, the useful part is the observable geometry: confirmed swings, near-equal prices, repeated failures and whether the level remains untouched.

Target map

The engine can maintain candidate liquidity targets above and below price and score them by timeframe, recency and clustering. A target should expire after it is meaningfully swept or after the structural context changes.

Connection to stop management

If a newly confirmed swing is also immediately adjacent to a strong unswept liquidity cluster, tightening a stop directly behind it may be fragile. That information can be logged as a stop-quality warning without automatically widening risk.

if confirmed_swing and clustered_extremes and not swept:
    liquidity_target = ACTIVE
if proposed_trailing_sl_near(liquidity_target):
    diagnostic += "STOP_NEAR_LIQUIDITY_POOL"

Educational engineering material. These are testable market models and implementation ideas, not investment advice or guarantees of performance.