Greetings Traders! Welcome back to today’s video! In this session, we're revisiting the critical concept of draw on liquidity. I'll guide you on how to take advantage of it with extreme market precision, focusing on when to trade, when to avoid the market, and how to increase your chances of high-probability trade outcomes. If you're looking to enhance your...
In this video, I'll delve into the concept of Institutional Market Structure, a vital tool for trend analysis. Specifically, we'll explore the Smart Money Tool/Technique (SMT), which provides insights into whether a market will continue its trend or potentially reverse. Understanding these concepts is crucial for effective trading strategies. Sit back, relax, and...
Fair Value Gap Trading Strategy To implementing a fair value gap as a trading strategy you need to understand these three basic components of this trading strategy. Time Liquidity Hunt Market Structure Shift Fair Value Gap Let’s begin by discussing the importance of time in trading. According to ICT Trader, time is considered to be fractal, meaning that...
Ethereum Classic (ETC) and Ethereum (ETH), two prominent cryptocurrencies, often find themselves compared due to their shared history. An intriguing aspect of their comparison is the formation of a similar liquidity pool from below, providing valuable insights into their respective price actions. 📉 Common Liquidity Pool Formation: Both ETC and ETH experienced the...
Here's how you can easily use liquidity to create wealth 🤑 Knowing how to identify liquidity is an important aspect of trading that shouldn't be overlooked, BUT contrary to popular belief, it's not the greatest thing since sliced bread... It does have its significance and it's place, but understanding WHY "liquidity" is formed is more important than the WHERE...
Liquidity serves as the driving force behind all markets. The fundamental driver of any price shift involves the creation and aggregation of liquidity, with the objective of accumulating or distributing positions among market participants. Accumulating positions necessitates counter liquidity to fulfill orders and initiate positions in the desired volume....
HOW TO MANUALLY DRAW THE MASTER PATTERN CONCEPTS # STEP 1 - Identify the Contraction Phase The contraction phase consists of a tightening of price where there is a simultaneous lower high and higher low, this is where the supply and demand equalize in the market. This is a leading indication that volatility is coming next. You want to look for places where...
Trading liquidity sweeps 🌊 and identifying fake liquidity grabs 🕵️♂️ can be valuable skills for traders. These strategies involve capitalizing on market inefficiencies and understanding how institutional traders and algorithms influence price movements. In this guide, we'll explore what liquidity sweeps and fake liquidity grabs are and how to trade them...
🔥Liquidity is what moves the market. Liquidity and liquidity pools are created and targeted by the markets and a lack of understanding on this topic is the main reason why the trading mind fails even if the analyst mind is correct. Traders who have been victim to their stop losses being taken by a wick before price running in their favour are the perfect example...
Before we begin, we need to understand what liquidity is. A market with high liquidity is one where there is a large number of buyers and sellers willing to trade in that particular asset. This means that there is a high availability of buy and sell orders, allowing transactions to be executed quickly and with minimal impact on prices. Where are the most liquid...
What is Liquidity in Forex Trading? Liquidity is the presence of orders at specific prices in the market, ensuring that transactions can take place without disruptions. When traders talk about liquidity, they are usually referring to the resting orders in the market. These orders can be absorbed or targeted by banks and financial institutions (BFIs) to influence...
Small and big players tend to acquire larger positions in the market than they can afford, in an attempt to benefit from the leverage. This is where the concept of liquidity grab comes into play. Large trades and institutional investors need to locate liquidity areas in the market to complete their trades. Stops and stop-loss orders are critical for survival in a...
There is a trick that market makers use and that is to create consolidations in order to induce retail entries. In text book practice, retail traders will always view a resistance or support level that has been tested more than once as a strong area to do entries because they feel it will hold price. As a result they put stop losses above or below the entry and...
This chart shows the common stop-loss touch and bounce pattern. And this happened because I was liquidity. The stop-loss was set at an "obvious" invalidation level, the previous supply level ($20,800). So, right below it, there was heavy bidding. The stop-loss hunters will place their bids just slightly below presumed ask levels.
✔️ The FOREX market is a zero sum game, which means that for a trader/institution to buy/sell 1 currency pair it's necessary that there is another trader/institution with an opposite position. If Smart Money (Banks) want to buy a currency pair they will need sellers in the market, the existing facility to place these positions In the market is called LIQUIDITY....
Why price reacts to s&d zones before breaking them. We tend to see a reaction for one simple reason; - BFI's need liquidity to accumulate a sizable position. So, how would a reaction provide them with this liquidity? - Retail traders will enter aggressively at these s&d zones expecting price to move away from them. Now, BFI's will use all this liquidity to...
Hello everyone! Liquidity is the main force that moves all markets, understand it well, and everything becomes clearer... Liquidity, simply, is "where orders are resting". Sometimes it is clear, other times not. So you have to look really well into where we have relative equal highs (sell-side) or lows (buy-side).Does that mean to jump into buying below relative...
Ever thought a price moves because it's on support level or below a resistance level? Or because your favourite indicators show a buy/sell signal and you want the price to see the same and move in you favourite direction? A Big No, dear. That simply won't happen... The main gyrator of the market is "Liquidity" What is liquidity? Liquidity, in very simple terms, is...