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Liquiditygaps

Dollar CPI Alert: Potential Buyside Draw for DXY🚨 High Impact News Alert! 🚨 News Release: Core CPI Time: 08:30 NY Time Attention traders! Core CPI news is slated for release at 08:30 NY Time . 🕣 Brace yourselves, as this news is known to inject significant volatility into the market. My analysis indicates a potential upward movement for DXY. The aim is to address inefficiencies lingering from last week's downward trend, which specifically targeted the Daily Sell Stops and mitigated the Daily Order Block. Adopting the perspective of Smart Money, we have the understanding that Smart Money used the Buy Stops for Order Pairing . Capitalizing on market inefficiencies such as Volume Imbalances and Liquidity Void will be the objective. Our target is the Daily Bearish Order Block, marking a return to Fair Value (Liquidation Zone). This strategic approach positions us to anticipate directional moves in USD-based pairs, potentially signaling a Bearish Idea, I will be looking at a Bearish Idea on GBPUSD. Stay tuned for a detailed video analysis and further updates as we navigate these dynamic market conditions. 📈💼 Kind Regards, The_Architect
TVC:DXYLong
by The_Archi-tect
Learn to identify liquidity levels. 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 points located on a chart? These points are found at the highs and lows. This is because at these points, many people are waiting for the zone to act as support or resistance, or for the price to break the zone (breakout) to continue its direction. I always use daily, weekly, and monthly timeframes to identify these zones. Why the liquid points are importante on a chart? Liquidity is extremely important because it is the direction in which the price moves. The price will always move towards these points to attract liquidity to the market. Without liquidity, financial markets cannot function. Which indicator can you use to identify liquidity levels? Previous Days Week Highs & Lows by sbtnc Certainly, this indicator will facilitate the process of identifying these points, but it will not identify all of them. -----Remember, like everything in trading, this needs to be combined with other confluences. It won't work by itself.----- Explanation of the example presented in the chart. I had some strong confluences indicating that the price was likely to have a bullish move. As seen in the COT report, there was aggressive selling of JPY. One of the things that helped me take this trade with confidence is that, as you can see in the circle, there was a weekly and monthly high together without being cleared. This created a double top pattern. Since this was such a liquid point, it gave me the confidence that the price would move towards this point before changing direction. And it did exactly that after consolidating for several days. These liquidity points can be used as confluence in our analysis, as well as a potential take profit level.
Education
by Wiiso
3
Intraday trading opportunities using liquidity gapsLiquidity gaps (price spikes) occur on the charts all the time and it doesn't matter what time frame you're looking at as you will find them everywhere. Now, not all liquidity gaps fill but depending on the market environment you're in, you can use these liquidity gaps to your favour to help discern where the market could go next sometimes with higher probability. What you have when you see a sharp spike in price are inefficient moves created in a direction where there is usually thinner liquidity present which is the reason for such a sharp drive in the first place, so when price starts to slow down after the move and show signs of weakness we can look for any topping or bottoming structures/patterns that may lead to price starting to fill the gap back to the original point where price took off from. As price starts to move back to the original position there is increased probability for price to fill the original drive higher or lower as there is not a lot of volume/transactions present in the price action to halt the move coming back towards the origin with great effect. Also, If price does fill back to the origin then there is a good chance that we could also see a bounce at this level again as this is where most of the order flow ignited the original spike higher/lower and additional volume could be present to help protect the original move. As you can see from the chart, we have shown 2 intraday moves on AUDUSD to show this natural movement in price that occurs very frequently both in a long and short example.
Education
by DavidVillagra
2
Long AudJpy (11/18) Liquidity gaps "Liquidity gaps" have been proving themselves over and over. Everytime there is a decent sized movement, price always seems to "fill in" or trade through those spots again. I've highlighted two spots in light yellow. (A third was a maybe). It looks like price is likely going to trade in to these "gaps" , I've highlighted. These are concepts learned from ICT. Also, I watched price fill the Weekly open last night and have noted this for a possible trading opp in the future. Any tips on Weekly opening gaps welcomed. In a small position long with a short term target and a longer term target.
Long
by PLAINVI3W
1