Fractals are local highs or lows that have 2 bars as "shoulders" on each side. An up-fractal exists when a bar's high is strictly higher than the 4 surrounding bars (2 before + 2 after). Down-fractals are analogous for lows. Important: a fractal is only confirmed after 2 more bars — the last 2 bars in the chart are therefore still "pending" and can change retroactively (which is why they're slightly greyed out).

Liquidity waves form when 3 consecutive fractals point in the same direction. Three rising down-fractal lows (each low higher than the previous) create an up-wave. Three falling up-fractal highs create a down-wave. If the move continues, the existing wave is extended rather than a new one being started.

Trend determination: if the current close sits above the most recent down-wave high AND above the most recent up-wave low → clear up-trend. Both anchors broken below → clear down-trend. In the "mixed region" between anchors, the younger wave wins.

Candle gradient: in up-trend, candles run from yellow (near up-wave low) to green (toward the high), depending on close position between the anchors. In down-trend from magenta (near the high) to red (toward the low). In sideways markets neutral grey.

What this is good for (and what it isn't): Phantomflow is a visualisation tool, not a signal generator. You see at a glance whether BTC is structurally making higher lows or lower highs — the classic trend definition. It's not a buy/sell signal and doesn't replace your own research.