Mastering Liquidity Dynamics: Understand the Dynamic True ValueDear Reader,
Thank you for reading—your time is valuable.
Use the chart's zoom-in/out (-/+) function for better visibility. This chart captures a large sample for your evaluation.
Below is the manual detailing the Smart Farmer System —a Dynamic True Value framework derived from real-time data to anticipate market intent and liquidity behavior .
If this resonates with you, drop a comment below— constructive insights are always welcome .
The Dynamic True Value - a Smart Farmer System: Terminology and Mechanics
: For now, I have firmed up POC - Price of Control, VAP - Value Average Pricing, SULB - Sell Upper Limit Bound, BLLB - Buy Lower Limit Bound.
Mechanic:
POC - Where fair value price dynamic is read.
VAP - Trading above indicates bullish sentiment of the cycle, and the opposite for bearish sentiment.
A crossed over of:
Grey POC above Green VAP - Signaling distribution, accumulation, consolidation, build-ups, correction, retracement .
Green VAP above Grey POC - Bullish strength and momentum consistency .
Pink VAP above Black POC - Bearish strength and momentum consistency .
Flip of Pink VAP to Green VAP - Sentiment flips from bear to bull, and the same goes for green flip to pink showing bull to bear.
Validation of entry signals requires:
Signal's candle must close past the opposite side of POC – flip sentiment .
The confirmation candle (is the closed next candle immediately after entry signal candle) must continue closed past the POC – maintain sentiment .
The progress candle (is the next candle closed right after the Confirmation Candle) shows traction, momentum build-up, and volume consistency .
Hint of invalidation:
Signal's candle is considered void if the next candle prints a new entry signal in the opposite direction. This often signals accumulation, sideways movement, build-up, uncertainty, or swings in range .
The immediate next candle closed past POC to the opposite side.
What to understand about Liquidity Trap, SULB, and BLLB:
Liquidity traps
Often occur at the recent/previous flatlines of Dynamic True Value (POC, VAP, SULB, BLLB) .
It is worth paying attention to the market’s intent and institutional positioning.
Signs of exhaustion, absorption, inducement, offloading, and accumulation are visible in the M1 (one-minute) TF, with significant confluence near the previous/recent flatlines of Dynamic True Value in the higher/macro-TFs.
An Anchored VWAP tool can be helpful for filtering noise in the market. This tool can be found in the drawing tab in the TradingView platform.
SULB
Details the dynamic of upper resistance where Bears remain in control below the dynamic level.
Below this limit bound (LB) , bears show strength – bear sentiment .
A converging price toward this LB indicates bulls are present.
Moving past this LB (a candle closed above) and successfully RETESTING newly formed support indicates a confirmed directional shift . Followed by printing a new BLLB in the next following candles with price continuing to rise above this failed SULB.
A rejection below LB (a rejection/exhausted candle closed below LB) and successful RETEST reaffirms the resistance holds , indicating downside continuation .
BLLB
Details the dynamic of lower support where Bulls remain in control above the dynamic level.
Above this LB, bulls show strength – bull sentiment .
A converging price toward this LB signifies bears are present.
Moving past this LB (a candle closed below) and successfully RETESTING newly formed resistance indicates a confirmed directional shift . Followed by printing a new SULB in the next following candles with price continuing to push lower below this failed BLLB.
A rejection above LB (a rejection/exhausted candle closed above LB) and successful RETEST reaffirms the support holds , indicating upward continuation .
Important Notes:
Select preferred Entry’s Signal TF (ex. M3 TF, M5 TF for scalping strategy, M15 for intraday/daily strategy, 4H TF for day-to-weekly strategy, etc.).
Always refer to the selected Entry’s TF for trading progress. Anticipate TP and SL by watching the range in this TF.
Non-entry TFs are not for entry purposes. These multi-TFs are used for measuring strength, momentum, liquidity, positioning, structure – The market intends . The Non-entry TF is used to anticipate institutional executions and liquidity pools.
These criteria MUST BE MET. A failed criterion suggests vague execution. Be patient and wait for clear validations.
Institutions excel in creating illusions.
SFS is designed to stand ready, calm, and execute with Clarity.
SFS cuts through noise, distraction, and stays independent of NEWS, GEOPOLITIC, RUMORS, and herd mentality because all these are designed to mislead retail traders into institutional traps.
When we see such ambiguity against the criteria, we know not to fall into the TRAP and become the liquidity FUEL.
Stay sharp, only respond when signals are firmed. SFS is designed to counter Smart Money capitalism. It is about time to level the playing field.
