> For the complete documentation index, see [llms.txt](https://docs.valhallaindicator.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.valhallaindicator.com/smc-indicator/htf-liquidity-pools.md).

# HTF Liquidity Pools

Valhalla SMC tracks session highs and lows from two configurable higher-timeframe candles as liquidity pools, the levels where retail stops cluster and institutions target for sweeps.

#### <mark style="color:cyan;">How Levels Are Collected</mark>

When a new HTF candle closes, the **previous** session's high and low are pushed into an active pool. Two timeframes can be configured (defaults: 4H and Daily), providing liquidity levels from multiple structural scales. Duplicate levels within 10% of ATR are automatically deduplicated, and the pool caps at 10 active levels per side.

#### <mark style="color:cyan;">Purging</mark>

A liquidity level is "purged" (removed from the active pool) when price trades through it, the wick or close exceeds the level. This mirrors the institutional concept of liquidity sweeps: once the stops at a level have been taken, that level is no longer an active magnet.

#### <mark style="color:cyan;">Role in Smart Targets</mark>

The nearest unpurged liquidity level in the trade direction becomes TP3 in Smart mode.&#x20;

For a long trade, the indicator finds the closest active session high above entry; for a short, the closest active session low below entry. This gives TP3 a fundamentally different character than TP1 and TP2, it represents where institutional order flow is likely to target, rather than where structure has formed.

<figure><img src="/files/qJRD4EWhVpMepDWIXpC3" alt=""><figcaption></figcaption></figure>

#### <mark style="color:cyan;">Settings</mark>

| Setting                     | Default | Purpose                                       |
| --------------------------- | ------- | --------------------------------------------- |
| `TP3 Liquidity Timeframe`   | 4H      | Primary timeframe for session high/low levels |
| `TP3 Liquidity Timeframe 2` | D       | Secondary timeframe for additional levels     |