1. What is “Liquidity”?
2. How to understand and use Liquidity.
3. How to MASTER Liquidity.
1. What is “Liquidity”?
It’s a key concept in trading. Liquidity will indicate you the actual buying/selling pressure.
Liquidity acts as a magnet. When the price moves, is more likely to go to take out areas with a lot of liquidity in it.
2. How to understand and use Liquidity?
As a trader, you will use LIQUIDITY for:
- Confluence
- Target
In other words, Take profit and Stop loss.
3. How to MASTER liquidity.
Step by step;
1.1 Wait for the LIQUIDITY SWEEP and the reaction to the level HTF POI.
Important to identify the Liquidity sweep. Important candle (DOJI) on that liquidity grab, that meant a change of trend.
1.2 Price should move higher from the liquidity sweep.
The displacement with that high volume, allows the price to go higher. Price reaches to resistance and makes a shift.
1.3 Price losses the temporary LTF support.
As a trader, you want to enter on the FVG formed.
If the price reclaims again the shift (temporary support, it’s a LONG)
1.4 Price reaches TAKE PROFIT.
Price reclaim the shift, and buying pressure kicks in. Price reaches to TP.
Important: LOOK at how the TP is placed on a liquidity hole/area.
SL is placed BELOW the Liquidity sweep (STEP 1)
USE LIQUIDITY AS CONFLUENCE AND TARGET.
Like and Share
#Ansarmahais #BTC #TrendingTopic #Liquidated #Portal $BTC $ETH $BNB