Understanding "Trend Line Liquidity" can give us an edge. Here’s the gist:
1. Spot the BOS: That's the "Break of Structure," where price action breaks past a key level, indicating a shift in market control. 🔽
2. Supply Zones: These are areas where sellers have previously entered the market, driving prices down.
3. Trend Lines & Stop Losses: We draw trend lines along the lows or highs, and savvy traders set their stop losses just beyond these lines for protection.
4. Watching Liquidity: When price makes a new low past our trend line, it’s often sweeping for liquidity—grabbing stop losses before reversing.
So, trend lines aren't just guides; they're also traps. By placing stop losses wisely and reading the BOS correctly, we can ride the wave without getting wiped out by the sweep. ✔️
Stay sharp and trade smart! 🕯💵