šIn this COMPLETE THREAD I will explain āTrading Liquidityā
š„PART 2š„
ā1. Who moves $BTC ?
ā2. What are Market Makers?
ā3. High frequency bots
ā4. āLiquidityā explained in chart
ā5. How trading bots identify Liquidity
š3.1 High frequency bots
Their high-frequency bots are programmed to detect manipulation opportunities and make profits.
This occurs when there is not enough liquidity and there is no evidence that other bots can operate in the opposite direction.
š3.2 High frequency bots
The focus of reading these algorithms is to find sensitive areas of liquidity and monitor their competition (other bots).
How do you detect your competitors?
High frequency always leaves traces, they run a lot of volume at milli-second levels
š4. āLiquidityā in a chart
High-frequency bots look for, and they are concentrated liquidity areas.
The little liquidity they detect is necessary to be able to execute many market orders and move the price.
First in this chart they liquidate LONG positions, then SHORT.
š4.1 āLiquidityā in a chart
That is why they need a final area of great liquidity to be able to close their high volume positions.
We call these areas the Liquidation Pool.
Within a heat map, the algorithm detects where the liquidation and SL should be located.
š5. Trading bots identifying Liquidity
This areas that are attractive for high-frequency bots, to be able to take advantage of all that liquidity.
This is why the price always forced to make novice market traders lose.
Thatās why the market flushes you in one wick.
š5.1 Trading bots identifying liquidity
In conclusion, the Strong Hands high frequency bots are the ones that move the price 80% of the time.
In smaller time frames, the price is always trying to liquidate.
š I hope this THREAD has helped you understand what āLiquidityā means.
š„CHECK MY PROFILE FOR THE PART 1!
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