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EURUSD 18 Dec 2023 Intraday AnalysisThis is my Intraday analysis on EURUSD for 18 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bullish Reached EQ/Extreme 2. INT structure turned bullish as expected and we are currently in 4H Swing continuation targeting the Weak Swing High and maybe more above. After the iBOS we would expect a pullback but be mindful with the current solid bullish momentum and that we are currently Pro Swing and Pro Internal, pullbacks will not be deep so be patient and cautious and utilize LTF to guide you. 3. Swing low and last demand for potential buys. 4. Price is currently at the Daily/4H Supply zones and Weak Swing High. Price had mitigated the Daily/4H Supply zones formed when we started the Swing Pullback. Currently price at a 4H Demand zone and the Zone low is the current Liq which price could sweep and continue up again targeting the Weak Swing High. As we are approaching the end of the year, better to observe the market and prepare yourself to the next year runs. 15m Chart Analysis 1. Swing Bullish Internal Bearish 2. Price created a bearish iBOS which confirms a Swing High. We are currently in the Swing pullback phase which means we are in a short term bearish momentum to facilitate the Swing pullback. We have some potential supply zones for Shorts to play the Swing Pullback as long we didn't reach the Swing EQ/Discount. I prefer the upper 2 zones as they are positioned in the Premium and they can potentially categorized as FLIP zones. For Swing bullish continuation, I'm looking on the 4H/15m Demand zone to look for reaction from for Longs as long the Strong Swing Low will Hold. 3. Potential Demand Zone within the current internal and in the Swing Discount. 4. Extreme Demand zone to hold if the 15m Swing will continue Bullish.
by Amr-Sadek
Bitcoin @ key support level: $41.7k. High liquidity zone nearingToday I was trading NASDAQ:MARA puts expecting breach of $41.7k. While that didn't happen during the day, my puts still have a chance over the weekend. Let's take a look at the possibilities. Let's look at this chart below: First let's look at the diamond top - this is one of the most bearish patterns in my opinion and a strong indication of a major trend reversal. Followed by the "h-pattern" - this is a mix of bear flag/ headshoulders and not a very known bearish pattern since it's basically a combination of a few bearish patterns. Easily identifiable as a lowercase H. Our key support here is $41711-ish. Take a look at the wick zone that I highlighted. That'll be pretty difficult to breach at first but if we test that level again, will be a major stop loss raid. Should be clear skies with no support till 40.6k. The real challenge is 40.1k. That dip will get eaten up reaaaalllll quick. There might already be limit buys in that zone. Easy money if you're daytrading here. There's soft support @ 41.4k but it'll be taken down quickly if we breach 41.7k. I'd be a strong buyer @ low 38k. While it's possible, I don't see a reason to slide to that level yet, unless there's FOMO-selling. The bull case is that 41.7k acts as a high liquidity zone and instead of being breached, it rockets from here. Given that possibility, I didn't swing a whole lot in NASDAQ:MARA puts. We'll see. As always, follow/ like/ support for some nice trades when market is open. I usually target AMEX:SPY NASDAQ:TSLA NASDAQ:AMD NASDAQ:NVDA NASDAQ:QQQ Cheers & GL.
COINBASE:BTCUSD
by kingdips
EURUSD 18 - 22 Dec 2023 Weekly Analysis - 2 Weeks for 2023 End!This is my Weekly analysis on EURUSD for 18 - 22 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: Weekly Daily 4H Economic Events Weekly Chart Analysis 1. Swing Bearish Internal Bearish Reached Swing EQ 2. After the iBOS we expected pullback, price tapped into Liq on the lift and a Weekly demand zone which provided a pullback and formed a bullish CHoCH confirming INT Low. 3. Price had fully mitigated the weekly supply (FLIP Zone and swept the Liq above the zone. Expectations are set now that we are targeting the Weak INT Low following the Bearish INT Structure. Price is approaching a weekly demand area which can provide a reaction. 4. Extreme supply within the bearish INT structure with Liq below it. A potential zone located in the Swing premium for continuation down Daily Chart Analysis 1. Swing Bearish INT Bullish OF Bearish Reached EQ 2. After BOS we expect a pullback OF turned bullish to facilitate the Swing pullback and we formed bullish iBOS to confirm the Swing Low and the pullback. With that pullback we formed Weekly and Daily demand zones which are potential for longs after confirmation on LTFs. 3. After the Bullish iBOS we are expecting a pullback. First sign of the pullback maybe starting is a CHoCH which price did and confirmed INT High. Price reached a daily demand zone where we have seen a solid reaction from to target the Weak INT High. The mitigation of this daily demand zone could be the start of the Bullish continuation of the Daily INT Structure. But be mindful that the Daily Swing is Bearish, Reached the EQ and mitigated Daily/Weekly Supply zones, So we may have finished the Swing pullback and we are in the Swing bearish continuation to target the Weak Swing Low. Let's watch LTF to guide us. 4H Chart Analysis 1. Swing Bullish INT Bullish Reached EQ/Extreme 2. INT structure turned bullish as expected and we are currently in 4H Swing continuation targeting the Weak Swing High and maybe more above. After the iBOS we would expect a pullback but be mindful with the current solid bullish momentum and that we are currently Pro Swing and Pro Internal, pullbacks will not be deep so be patient and cautious and utilize LTF to guide you. 3. Swing low and last demand for potential buys. 4. Price is currently at the Daily/4H Supply zones and Weak Swing High. Price had mitigated the Daily/4H Supply zones formed when we started the Swing Pullback. Currently price at a 4H Demand zone and the Zone low is the current Liq which price could sweep and continue up again targeting the Weak Swing High. As we are approaching the end of the year, better to observe the market and prepare yourself to the next year runs. Economic Events for the Week
by Amr-Sadek
EURUSD 15 Dec 2023 Intraday AnalysisThis is my Intraday analysis on EURUSD for 15 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bullish 2. INT structure turned bullish as expected and we are currently in 4H Swing continuation targeting the Weak Swing High maybe more above. After the iBOS we would expect a pullback but be mindful the the current solid bullish momentum and that we are currently Pro Swing and Pro Internal, pullbacks will not be deep so be patient and cautious and utilize LTF to guide you. 3. Swing low and last demand for potential buys. 4. Price is currently at the Daily/4H Supply zones and Swing extreme. Our expectations that we will reach the Weak Swing High and extend more. But be mindful that there are no options for longs here as the move already started from the Swing Discount and currently we are at the extreme premium. As we are at the end of the week and the year, better to observe the market and prepare yourself to the next year runs. 15m Chart Analysis 1. Swing Bullish Internal Bullish 2. Price still in Bullish continuation after the BOS creating Bullish Internal structures. Price mitigated Daily/4H Supply zones and could start a pullback at anytime. A Bearish iBOS will be the signal that the pullback maybe starting. Be mindful that the current bullish momentum is going to extend to reach the 4H Swing high so still we have another leg up before a pullback. Always waiting for solid confirmation will be the right decision. 3. Potential Demand Zone within the current internal and in the Swing Discount.
by Amr-Sadek
EURUSD 14 Dec 2023 Intraday Analysis - EUR Interest Rate This is my Intraday analysis on EURUSD for 14 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. INT structure turned bullish as expected and we are currently in 4H Swing continuation targeting the Weak Swing High maybe more above. After the iBOS we would expect a pullback but be mindful the the current solid bullish momentum and that we are currently Pro Swing and Pro Internal, pullbacks will not be deep so be patient and cautious and utilize LTF to guide you. 3. Swing low and last demand for potential buys. 4. Price swept liquidity on the left but didn't mitigate any supply zone to initiate the pullback. We have the Daily/4H Supply zone that can provide reaction (Not expecting a deep reaction) that can provide a pullback before we reach the Weak Swing High. 5. Fundamentally: The Fed showed the acceptance to the market expectations on rate cuts next year which is bearish USD. We will continue bullish till next CPI/NFP reports which can provide more confirmation for the next FOMC meeting. 15m Chart Analysis 1. Swing Bullish Internal Bullish 2. Swing turned Bullish creating BOS. After a BOS we expect a pullback. First sign of the pullback maybe starting will be a CHOCH. Expectations that price can pullback to demand areas to continue bullish. But be mindful that with that solid bullish momentum, pullbacks will not be deep. Also price didn't mitigate any HTF POI yet to initiate the pullback, so most probably we will continue the leg up before any decent pullback. NOTE: Today is EUR Interest Rate Decision. 3. Potential Demand Zone within the current internal and in the Swing Discount.
by Amr-Sadek
ETH/USD - Ascending Triangle and a Double TopETH/USD is in an Ascending Triangle Pattern. We also have what could be a Double Top as well. Ascending Triangle Pattern = Potentially Bullish Double Top = Potentially Bearish Here is a closer look at this 1day chart. Note the Liquidity Void being filled up at the moment. Here is a closer look at the RSI. Momentum is downwards at the moment but note the over extension of the RSI on the attached Bollinger Bands. There could be interesting times ahead.
BITSTAMP:ETHUSD
by TradingThroughTheLens
1
EURUSD 13 Dec 2023 Intraday Analysis - US PPI/FOMC DayThis is my Intraday analysis on EURUSD for 13 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. INT structure turned bearish to liquidate the INT Low (Liquidity above the Daily Demand) and mitigated the daily demand zone. INT Structure is currently bearish, so we are still bearish and there is a high probability that we may break the Swing Low as per the Daily/Weekly Bearish Continuation. On the other side, 4H/Daily Swings are bullish and we are at the extremes. If we are going to continue these bullish structure then at least we need to see Bullish iBOS on the 4H. We also could benefit from LTFs to show us early if that daily mitigation could develop to be a Swing Continuation on the 4H/Daily. Waiting for LTF to show me more developments. 3. Swing low and last demand for potential buys. 4. Technically, we still bearish and potentially we can continue down. But looking on the current market fundamentals, Market is in indecision sentiment due to End of Year (December), Inflation Expectations and Rate Hikes/Cut. Volatility is the nature of December due to the lack of liquidity. 15m Chart Analysis 1. Swing Bearish Internal Bullish Reached EQ 2. Price failed to break the Strong Swing High and swept the liquidity above causing a bearish ChoCH. We still in bearish Swing and looking on the bigger picture we are still in the same range for almost 2 weeks now. Not much interested still in Shorting until we have a decent pullback to daily supply. From Intraday prospective, Shorts is the proper play following the 4H/15m Bearish Structure. Will wait for more development if there will be opportunity for Longs confirmation after the 15m Swing / 4H internal turns Bullish. 3. No Supply zones for Shorts that can be potential. 4. Risky Demand zone for longs. Solid confirmation needed before longs.
by Amr-Sadek
EURUSD 12 Dec 2023 Intraday Analysis - US CPI DayThis is my Intraday analysis on EURUSD for 12 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. INT structure turned bearish to liquidate the INT Low (Liquidity above the Daily Demand) and mitigated the daily demand zone. INT Structure is currently bearish, so we are still bearish and there is a high probability that we may break the Swing Low as per the Daily/Weekly Bearish Continuation. On the other side, 4H/Daily Swings are bullish and we are at the extremes. If we are going to continue these bullish structure then at least we need to see Bullish iBOS on the 4H. We also could benefit from LTFs to show us early if that daily mitigation could develop to be a Swing Continuation on the 4H/Daily. Waiting for LTF to show me more developments. 3. Swing low and last demand for potential buys. 15m Chart Analysis 1. Swing Bearish Internal Bearish Reached EQ 2. Swing turned bearish after NFP and tapped into a Daily Demand Zone where we started the 15m Swing/INT Pullback. Currently we are bearish in Structure on 15m and 4H. My expectations is that if we are going to continue down we need to respect the 15m Swing / 4H INT Highs and we can continue bearish. If we invalidated the 15m Swing / 4H INT Highs then we are going to play longs for the Daily Structure. 3. No Supply zones for Shorts that can be potential. 4. No significant Demand zones to hold price
by Amr-Sadek
EURUSD 11 Dec 2023 Intraday AnalysisThis is my Intraday analysis on EURUSD for 11 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. INT structure turned bearish to liquidate the INT Low (Liquidity above the Daily Demand) and mitigated the daily demand zone. INT Structure is currently bearish, so we are still bearish and there is a high probability that we may break the Swing Low as per the Daily/Weekly Bearish Continuation. On the other side, 4H/Daily Swings are bullish and we are at the extremes. If we are going to continue these bullish structure then at least we need to see Bullish iBOS on the 4H. We also could benefit from LTFs to show us early if that daily mitigation could develop to be a Swing Continuation on the 4H/Daily. Waiting for LTF to show me more developments. 3. Swing low and last demand for potential buys. 15m Chart Analysis 1. Swing Bearish Internal Bearish Reached EQ 2. Swing turned bearish after NFP and tapped into a Daily Demand Zone where we started the 15m Swing/INT Pullback. Currently we are bearish in Structure on 15m and 4H. My expectations is that if we are going to continue down we need to respect the 15m Swing / 4H INT Highs and we can continue bearish. If we invalidated the 15m Swing / 4H INT Highs then we are going to play longs for the Daily Structure. 3. No Supply zones for Shorts that can be potential. 4. No significant Demand zones to hold price.
by Amr-Sadek
EURUSD 11 - 15 Dec 2023 Weekly Analysis - FOMC Week!This is my Weekly analysis on EURUSD for 11 - 15 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: Weekly Daily 4H Economic Events Weekly Chart Analysis 1. Swing Bearish Internal Bearish Reached Swing EQ 2. After the iBOS we expected pullback, price tapped into Liq on the lift and a Weekly demand zone which provided a pullback and formed a bullish CHoCH confirming INT Low. 3. Price had fully mitigated the weekly supply (FLIP Zone and swept the Liq above the zone by not fully closing the candle above. Expectations are set now that we are targeting the Weak INT Low following the Bearish INT Structure. Price is approaching a weekly demand area which can provide a reaction. 4. Extreme supply within the bearish INT structure with Liq below it. A potential zone located in the Swing premium for continuation down Daily Chart Analysis 1. Swing Bearish INT Bullish OF Bearish Reached EQ 2. After BOS we expect a pullback OF turned bullish to facilitate the Swing pullback and we formed bullish iBOS to confirm the Swing Low and the pullback. With that pullback we formed Weekly and Daily demand zones which are potential for longs after confirmation on LTFs. 3. After the Bullish iBOS we are expecting a pullback. First sign of the pullback maybe starting is a CHoCH which price did and confirmed INT High. With that pullback we had formed a Supply zone that can act as a potential zone to play the pullback phase. Price reached a daily demand zone where we have seen a reaction from on Friday after NFP news. The mitigation of this daily demand zone could be the start of the Bullish continuation of the Daily INT Structure. But be mindful that the Daily Swing is Bearish, Reached the EQ and mitigated Daily/Weekly Supply zones, So we may have finished the Swing pullback and we are in the Swing bearish continuation to target the Weak Swing Low. Let's watch LTF to guide us. 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. INT structure turned bearish to liquidate the INT Low (Liquidity above the Daily Demand) and mitigated the daily demand zone. INT Structure is currently bearish, so we are still bearish and there is a high probability that we may break the Swing Low as per the Daily/Weekly Bearish Continuation. On the other side, 4H/Daily Swings are bullish and we are at the extremes. If we are going to continue these bullish structure then at least we need to see Bullish iBOS on the 4H. We also could benefit from LTFs to show us early if that daily mitigation could develop to be a Swing Continuation on the 4H/Daily. Waiting for LTF to show me more developments. 3. Swing low and last demand for potential buys. Economic Events for the Week
by Amr-Sadek
EURUSD 8 Dec 2023 Intraday Analysis - NFP Day!This is my Intraday analysis on EURUSD for 8 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bullish Reached EQ 2. INT structure turned bullish which is a sign that the Swing pullback my had finished and we could continue up following the Bullish Swing. We didn't mitigate any HTF POI till now for this INT structure to hold. May be the daily range on the left could be the reason of the INT to turn bullish! We will see after. Currently we are mitigating the 4H demand that caused the Bullish iBOS and as long we respect the INT Low the possibility of moving up from his is high. Waiting for LTF to show me more developments. 3. Swing low and last demand for potential buys. 15m Chart Analysis 1. Swing Bullish Internal Bullish Reached EQ 2. Swing turned bullish after a series of bearish structures which indicates that the 4H Swing pullback may ended and we may continue the Bullish 4H Swing move. Current bullish Swing structure is a sign of bullishness but looking on the left, we still in a range which is not convincing much and could be a a pause in the market before heading down again. Away from that, as long i trust the structure and accept the outcome from it, i'll be looking for longs to continue that bullish Swing as long we don't break the Swing low and form again a bearish Structure. 3. 15m Demand within the 4H Demand which could provide opportunity for longs as long we respect the Swing Low.
by Amr-Sadek
EURUSD 7 Dec 2023 Intraday Analysis -EUR GDP / US Jobless ClaimsThis is my Intraday analysis on EURUSD for 7 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. Price had created a Bearish INT Structure and it could be targeting the 4H Demand within the Swing extreme. Currently price is in Swing pullback phase and the Bullish continuation could start at anytime from the Swing Discount. It's preferred to mitigate a Demand zone to give more confidence. Will be waiting for LTF (15m) to support the decision with bullish structure formation. 3. Swing low and last demand for potential buys. 15m Chart Analysis 1. Swing Bearish Internal Bearish 2. Price still in a series of bearish structures (Swing/Internal) as we didn't mitigate yet any HTF POI. We formed Swing Low yesterday after a Bullish iBOS but it didn't hold for a pullback phase. My expectations is price may continue down to a HTF POI and we can see after a change to a bullish structure to confirm that the 4H Swing pullback is over and we may continue the Bullish Swing. Currently Shorts is the play with the current Bearish Swing from Supply zones that are well positioned in Premium. For Longs, i'll wait for the mitigation of a HTF Demand zone or the 15m Swing/Internal turn bullish.
by Amr-Sadek
BLUR: Manipulative Moves ! 🌐📉🚀Today, let's cast our spotlight onto a fresh contender in the crypto arena—BLUR. Despite recently joining the Binance exchange, BLUR has wasted no time in showcasing its distinctive character, creating waves with its unconventional market behavior. Join me as we unveil the stealthy moves of this intriguing newcomer. 🔄💼 Deciphering BLUR's Market Dynamics: New Kid on the Block: Recent Binance Listing: BLUR has recently entered the illustrious realm of Binance, gaining attention for its unique market tactics. Sweep of Low – Market Mastery: Strategic Maneuver: BLUR employs a fascinating tactic known as the "sweep of low," a calculated move to capture liquidity at lower price levels. Ruthless Efficiency: This maneuver can lead to swift market exits for unsuspecting participants, creating an environment where only the vigilant thrive. Strategic Insights and Trading Considerations: Market Caution: Inherent Volatility: BLUR's market behavior suggests a level of volatility that demands caution. Sharp Movements: Be prepared for sudden and sharp price movements, especially during and after a sweep of low. Analyzing the Patterns: Watchful Eye: Keep a watchful eye on BLUR's chart for patterns associated with liquidity sweeps and subsequent price surges. Learning Opportunities: Understanding these patterns may present unique opportunities for traders who can navigate BLUR's market dynamics effectively. Community Vigilance: Stay Informed: Community Awareness: Keep an ear to the ground within the BLUR community for insights and announcements. Dynamic Market: The dynamic nature of BLUR's market requires continuous monitoring and adaptability. Conclusion: BLUR emerges as a unique and enigmatic player in the crypto space, showcasing unconventional strategies and market behavior. Traders and enthusiasts alike should approach BLUR with a discerning eye, appreciating the potential opportunities that arise from its distinctive moves. May your crypto endeavors be as mysterious and rewarding as the journey with BLUR! ❗️Get my 3 crypto trading indicators for FREE! Link below🔑
by AlexWhale
2
EURUSD 6 Dec 2023 Intraday Analysis - EUR Retail Sales / US ADPThis is my Intraday analysis on EURUSD for 6 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. Swing low and last demand for potential buys. 3. Price created a bearish iBOS which confirmed the Swing High and the Pullback started. Price tapped into the Discount and we may start the Pullback for the bearish INT Structure. Price could sweep the Liq. above the CHoCH and continue down. But be mindful that the Swing is Bullish and we could see the Swing bullish continuation at anytime. There is no high probability demand that price can start the pullback from and the only one available currently at the Swing extreme. Due to that, better to see structure change on LTF before looking for Longs. 15m Chart Analysis 1. Swing Bearish Internal Bearish 2. Swing structure turned bearish creating a BOS. After a BOS we expect a pullback. INT structure is bearish which means we still in the bearish continuation until we have a Bullish iBOS. Also we didn't mitigate any HTF POI to initiate a pullback yet. I'll be waiting for Bullish iBOS to play the 15m Swing pullback or wait for the 4H Bearish iBOS to confirm the 4H Swing Pullback started to play Shorts. Currently the 15m INT is in a series of bearish structures so most probably we will continue bearish till we reach a HTF POI.
by Amr-Sadek
Market Maker sell model target weekend liquidity and NWOGPossible market maker sell model for today in the New York session. I would expect the price to seek liquidity below the weekend consolidation. The context is based on the analysis of ETH1! from CME futures, where we can observe a breaker block and NWOG at discounted prices and an MKS on the 4-hour chart, so I would anticipate a retracement to that zone (Image attached below). We also have a volatility injection at 10 AM (NY time).
BINANCE:ETHUSDShort
by NarcotikT
EURUSD 5 Dec 2023 Intraday AnalysisThis is my Intraday analysis on EURUSD for 5 Dec 2023 based on Smart Money Concept (SMC) which includes the following Time Frames: 4H 15m 4H Chart Analysis 1. Swing Bullish INT Bearish Reached EQ 2. Swing low and last demand for potential buys. 3. Price created a bearish iBOS which confirmed the Swing High and the Pullback started. Price tapped into the Discount and we may start the Pullback for the bearish INT Structure. Price could sweep the Liq. above the CHoCH and continue down. But be mindful that the Swing is Bullish and we could see the Swing bullish continuation at anytime. There is no high probability demand that price can start the pullback from and the only one available currently at the Swing extreme. Due to that, better to see structure change on LTF before looking for Longs. 15m Chart Analysis 1. Swing Bearish Internal Bearish 2. Swing structure turned bearish creating a BOS. After a BOS we expect a pullback. INT structure is bearish which means we still in the bearish continuation until we have a Bullish iBOS. I'll be waiting for Bullish iBOS to play the 15m Swing pullback or wait for the 4H Bearish iBOS to confirm the 4H Swing Pullback started to play Shorts.
by Amr-Sadek
TRADING FOUNDATION: WHY DOES PRICE MOVE (PART 1 - LIQUIDITY)WHY DOES PRICE MOVE IN THE FOREX MARKET? A simple answer to this question is... price moves for 2 major reasons To take liquidity To fill imbalances or price inefficiencies I will break this into two parts and discuss Liquidity first. 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 the patterns of price movement. Liquidity can be found throughout the market, although certain areas may have higher levels than others. The good news is that it is indeed possible to learn how to identify and recognize liquidity patterns. Liquidity comprises a variety of orders that gather in the market, including limit orders, stop loss orders, and stop limit orders. These orders come into play when prices reach specific levels of supply or demand in the market. Understanding liquidity is essential in comprehending how prices move. Why do you need to understand Liquidity? Liquidity is crucial for predicting price movements. Analyzing liquidity, along with market structure, supply and demand, and order flow, provides insights into potential price directions. It's important to consider liquidity alongside trend analysis and supply and demand to understand market conditions effectively. Highly liquid markets can be manipulated by large banks or institutions, leading to liquidity shortages, price slippage, and poor trade execution. Recognizing liquidity pools during slow sideways price movements is key. What are the main types of Liquidity in Forex trading? 1. Buy-side liquidity (see chart for example) Buy-side liquidity refers to the accumulation of orders above a range or high, including buy-stop limits and stop losses placed by sellers and breakout traders. Banks and financial institutions (BFIs) may target these orders to fuel temporary or sustained bullish price movements. Buy-side liquidity can be divided into 3 a. Relatively equal highs liquidity b. Previous high liquidity c. Trendline liquidity a. Relatively equal highs: This is when the price fails to break a level within a minimum of two tries. When this happens, there is a high tendency that orders will be above that level i.e. stop-losses or buy-stop orders. Due to this, large institutions will target that level to liquidate their orders or fill new orders. see the example below. b. Previous high: A previous high is the top of a level or range from which a retracement in price started. Every high in the market holds liquidity. Usually not as appealing at the relatively equal highs. see the example below. c. Trendline: This liquidity setup is usually as appealing as the relatively equal highs as it provides enough liquidity in the market to liquidate orders of large funds or fill in more orders. Anytime you notice a buy-side trendline liquidity building up, expect that price will move radically fast towards it. see example below 2. Sell-side liquidity (see chart for example) Sell-side liquidity refers to the collection of orders situated below a range or low, including sell-stop limits and stop losses placed by buyers and breakout traders. Banks and financial institutions (BFIs) can target these orders to generate temporary or sustained bearish price movements. Similar to buy-side liquidity, sell-side liquidity serves a crucial role in the market dynamics. Sell-side liquidity can be divided into 3 a. Relatively equal lows liquidity b. Previous low liquidity c. Trendline liquidity a. Relatively equal lows: This is when the price fails to break a level within a minimum of two tries. When this happens, there is a high tendency that orders will be below that level i.e. stop-losses or sell-stop orders. Due to this, large institutions will target that level to liquidate their orders or fill new orders. see the example below. b. Previous low: A previous low is simply put at the top of a level or range from which a retracement in price started. Every low in the market holds liquidity. Usually not as appealing at the relatively equal lows. see the example below. c. Trendline: This liquidity setup is usually as appealing as the relatively equal lows as it provides enough liquidity in the market to liquidate orders of large funds or fill in more orders. Anytime you notice a sell-side trendline liquidity building up, expect that price will move radically fast towards it. see example below Note : This does not mean you should just trade based on where you see liquidity, you should also do a proper multi-timeframe analysis, and if your narrative aligns with where liquidity is resting, there is a higher chance for it to go there. I will make a post on the Part 2 - Imbalances. Ensure to follow so you see what it is and how to make good use of it. Cheers, Jabari
OANDA:XAUUSDEducation
by jabariofafrica