VOL High Liquidity Multiplier

his indicator, named "VOL High Liquidity Multiplier," is designed to highlight candles with high liquidity in a chart. The script is written in Pine Script (version 5) for use in TradingView. Here's an explanation of the key components:

Inputs (Settings):

highVolumeMultiplier: A multiplier (default value 3) used to identify candles with high liquidity. It compares the current volume to the average volume of the last 20 periods.
candleColor: The color used to highlight candles with high liquidity (default is yellow).
showShadedZone: A boolean to enable or disable highlighting the high liquidity area (zone).
zoneColor: The color of the shaded area (default is a transparent blue).
lineStyle: Allows the user to choose between solid, dashed, or dotted lines for high liquidity zone boundaries.
showBox: A boolean that, when enabled, will highlight the high liquidity zone using a box instead of lines.
candleLineStyle: Defines the style of the lines drawn around high liquidity candles (solid, dashed, or dotted).
candleLineWidth: The width of the lines drawn around high liquidity candles.
High Liquidity Calculation:

avgVolume: Calculates the average volume of the last 20 periods (using ta.sma()).
isHighLiquidityCandle: Identifies a candle with high liquidity if its volume is greater than the average volume multiplied by the highVolumeMultiplier.
Drawing the High Liquidity Candle:

The script uses barcolor to change the color of the bars (candles) that meet the high liquidity condition.
Tracking High Liquidity Candle Data:

The variables lastHighLiquidityHigh, lastHighLiquidityLow, and lastHighLiquidityIndex store the high, low, and bar index of the most recent high liquidity candle.
Drawing the High Liquidity Zone:

When showShadedZone is enabled, the script draws a shaded area around the high liquidity zone. The area is either a box (showBox) or a line-based boundary.
The box is drawn using box.new() and updated dynamically based on the high and low of the most recent high liquidity candle.
Line Styling:

The user can choose the line style (solid, dashed, or dotted) to represent the boundaries of the high liquidity zone. The lines include the high, low, and middle levels of the zone.
Highlighting High Liquidity Candles:

If a candle has high liquidity, the script draws lines around it to highlight the candle's boundaries, using the candleLineStyle and candleLineWidth settings.
Overall Purpose:
This indicator helps to visually identify candles with significant trading volume (high liquidity) and highlight these areas on the chart, allowing traders to quickly spot potential zones of interest where there is increased market activity.