Liquidity pool
Cluster of swings at almost the same price.
Several swings sit at almost the same price. Resting stop orders are assumed behind them. This is candle geometry, not the order book.
Clustering is by price proximity, not by order — but only across candles that left the level alone. Two highs with a higher candle between them are not equal highs: the stops above the first were already taken before the second printed, so the second opens a new pool instead of joining the old one. The find is knowable only once the last swing in the cluster is confirmed — with ZigZag that can take a while, and the as-of slider is where you see it.
A pool ends in one of two ways, and the find says which. Swept: a candle traded beyond the level, the orders are gone — that is what Level pierce reads. Superseded: a third swing joined, and the pool with one touch more takes over; the level is still there, only the description changed.
Names
Neutral: Liquidity pool / Liquiditäts-Pool. ICT: Equal Highs / Lows, short EQH/EQL. Not "Buyside / Sellside Liquidity": in ICT that is any liquidity behind a high or low, a single swing included, while this rule asks for at least two touches.
Settings
Cluster tolerance is how far apart two swings may sit and still count as the same level. Threshold measured against picks what that distance is compared to: Price (default) reads the tolerance as a fraction of the price (0.0008), Bar range as a multiple of the median candle range over the last reference window candles (1.0 over 20 candles). Under Bar range the yardstick is taken at the swing that opened the pool, so the band stays where it was drawn.
The switch matters most here. With the fixed fraction the same setting found 22 pools on a 15-minute series and only 12 on the hourly one — the candles grew, the tolerance did not, and a level that was "equal" on one chart was two levels on the other. Against the median range the same setting finds 22 and 24.
Minimum touches defaults to 2. Max. distance in pool defaults to 40 bars. Swing method defaults to N-bar fractal with lookback 3. Williams fractal and ZigZag are available too; ZigZag uses a reversal of 0.005 of price by default. Lookback only applies to N-bar; ZigZag reversal only applies to ZigZag.