1. What is liquidity?
Liquidity matters in trading because it indicates the level of buying and selling activity.
It functions like a magnet, attracting prices to areas with many buyers or sellers.
When prices fluctuate, they typically shift toward regions with high trading volume.
Liquidity matters in trading because it indicates the level of buying and selling activity.
It functions like a magnet, attracting prices to areas with many buyers or sellers.
When prices fluctuate, they typically shift toward regions with high trading volume.
1. Understanding and using liquidity is important for traders because it affects:
- Confluence
- Target
In basic terms, it influences your take-profit and stop-loss plans. x.com
- Confluence
- Target
In basic terms, it influences your take-profit and stop-loss plans. x.com
1. How to MASTER liquidity?
Step by step
Step 1
- Look for the LIQUIDITY SWEEP.
- Watch how the high time frame (HTF) Point of Interest (POI) reacts.
- Spot the Liquidity sweep.
- Pay attention to the important DOJI candle that appears during the liquidity grab.
- This indicates a change in trend.
Step by step
Step 1
- Look for the LIQUIDITY SWEEP.
- Watch how the high time frame (HTF) Point of Interest (POI) reacts.
- Spot the Liquidity sweep.
- Pay attention to the important DOJI candle that appears during the liquidity grab.
- This indicates a change in trend.
Step 2
- The price is likely to rise after the liquidity sweep.
- The large volume change / FVG allows for greater price movement.
- When the price nears resistance, it experiences a change. x.com
- The price is likely to rise after the liquidity sweep.
- The large volume change / FVG allows for greater price movement.
- When the price nears resistance, it experiences a change. x.com
Step 3
- The price breaks below short-term support.
- As a trader, you want to enter when FVG forms.
- If the price returns to the support level, it indicates a LONG position. x.com
- The price breaks below short-term support.
- As a trader, you want to enter when FVG forms.
- If the price returns to the support level, it indicates a LONG position. x.com
Step 4
- The price reaches the TAKE PROFIT level.
- The price gains momentum, leading to buying pressure, and hits TP.
- Observe where the TP is in relation to a liquidity gap/area.
- Set the STOP LOSS BELOW the liquidity sweep (STEP 1).
- Use liquidity as a supporting factor and target.
- The price reaches the TAKE PROFIT level.
- The price gains momentum, leading to buying pressure, and hits TP.
- Observe where the TP is in relation to a liquidity gap/area.
- Set the STOP LOSS BELOW the liquidity sweep (STEP 1).
- Use liquidity as a supporting factor and target.
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