Liquidity is what moves the market. Liquidity and liquidity pools are created and targeted by the markets and a lack of understanding on this topic is the main reason why the trading mind fails even if the analyst mind is correct. Traders who have been victim to their stop losses being taken by a wick before price running in their favor are the perfect example of having the correct analytical mind but a weak trading one. Liquidity is unlike an order block or price inefficiency or anything else that can be physically identified on a chart. It is invisible, however, it is still possible to identify without the need of indicators or anything other than price action alone.
In the current scenario, we are witnessing a small correction aimed at mitigating the inefficiencies in the discount array. Once this mitigation takes place, we can anticipate a pump that will help mitigate the weekly breaker around the 34,000 regions. The reaction of the price at this weekly breaker is of utmost importance for BTC, as any adverse reaction could lead to the creation of new lows.
At present, our expectation is for a pump towards the 34,000 regions (from a Day time frame point of view) in order to clear buy-side liquidity and effectively mitigate the weekly breaker.
Supply/demand is a zone, where price rapidly pushes away from (lots of orders placed), creating inefficiency (IFC) , breaks structure (BOS) and change of character [ Structure shift from bullish to bearish or bearish to bullish].
1) In order to find the best supply or demand zone:
* find areas where IFC has been created
* find the last recent candle before the IFC , it doesn't have to be an opposite direction candle! (for example: if the IFC was created on the long side, you can choose an upside move candle, it doesn't have to be a downside move candle.)
2) What's mitigated /unmitigated : when price taps into a d/s zone, that has not been tapped yet, it becomes mitigated from unmitigated. These unmitigated zones could be our TP points after CHoCH, or entry points .
1. Develop a solid trading plan 2. Focus on risk management 3. Maintain a trading journal 4. Stay disciplined & patient 5. Continuously learn and adapt 6. Master your emotions 7. Treat trading like a business, not a hobby.
As expected external liquidity (inducement) is taken out and the price reverse from the fvg of the discount array. Currently taking out minor external liquidity and accumulating orders from the below order block. Higher-high ($ 4834) of the weekly structure is confirmed after taking out inducement. In the upcoming week, we can see a good movement to the fvg at $2400 if the smart money accumulation zone holds.
Currently at 1st potential reversal zone, after collecting external liquidity we can expect an reversal to collect above internal liquidity. If btc fail to reverse from these zone then we can expect more down side move to collect orders from discount fvg or second prz zone. Currently at accumulation stage and daily structure is clearly bullish.
First you must have a clean consolidation which you are anticipating that it will be taken once market come up . Secondly you must have an old low Significant OB which market is chasing it(magnetic) and you know that aftermarket taken out that old low then it will reverse quickly to come up to attack your consolidation. And finally you will investigate if you have any bearish SMT divergence that will give you a confidence that market will chase that old low.
When trading the markets structure is key. This helps you know what trend you are in and will help you identify which direction to trade in. Here's a simple diagram of how to map it. When we get a break of a high we track back to the furthest point before the break. Then when we get a decent sized pull back in comparison to the break we can then mark out the high. Then you just repeat these steps every time you get a break. Now lets look at a more realistic diagram .
As we all know the markets don't move in a simple 123 pattern. There will be times where the pull back will be more complex. However the same rules apply. Once you have the BOS track back to the furthest point before the break that will be your low. Then when you get a decent pull back compared to the break then you can mark out the high.
As I mentioned earlier price close down below 25700, and the structure is still bearish ( Lower Low: 25323, Lower High: 28436), We have inducement liquidity above 27477 after taking out idm we can look for possible sell entries at 27500 to 28000 regions (with lower time frame confirmations), if a candle close above 28436 then the structure shift into bullish.
LIVE
AJ
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Bearish
BTC 4H ANALYSIS #technicalanalysis
Btc 4H structure is bearish. After taking out inducement(idm) liquidity BTC may down below 25760, or build more liquidity above 29000 and then dump below 25760. Btc structure will turn bullish if a candle close above the major swing high which is at 31100. In the current situation, the possibility of going below 25760 is high. You can choose 15 m for taking entries if you choose 4H as the major time frame.
Sellsideliquidity : Firstly, looking at the chart below we can see the support zone which is a zone for buyers to start taking long positions then we know there is volume at that zone ,2ndly we also know that if the market wants to grab liquidity, they do that with order blocks below the liquidity. The entry would be at the order block candle below the liquidity, If you don’t have this type of knowledge, you might also be trying to trade the support zone and unfortunately, you would be taken out because your SL will be exactly below the zone and you become the liquidity.
Buysideliquidity : The liquidity was formed while resistance was created and the entry would be exactly at an order block right above the liquidity. Market will always repeat the same thing over and over again.
Fair Value Gaps(Fvg) occur when a Price leaves a specific level where there’s less trading activity seen and only has a one-directional price movement. Fvg can present new trading opportunities especially when coupled with Supply/Demand.Before diving into the practical use of the Fair Value Gap in trading, it's crucial to have a clear understanding of what it is and how to identify it on your charts. The Fair Value Gap, or FVG, is a widely utilized tool among price action traders to detect market inefficiencies or imbalances. Sometimes you will even see them labeled as inefficiencies by other traders. These imbalances arise when buying or selling pressure is significant, resulting in a large upward or downward move, leaving behind an imbalance in the market.
Btc 4H structure is bearish. After taking out inducement(idm) liquidity BTC may down below 25760, or build more liquidity above 29000 and then dump below 25760. Btc structure will turn bullish if a candle close above the major swing high which is at 31100. In the current situation, the possibility of going below 25760 is high. You can choose 15 m for taking entries if you choose 4H as the major time frame.