Smart Money Concepts -Liquidity Grab - Video 1
This video is intended mainly for the purposes of me to rewatch and so I can retain information.
In this video,
I analyze the GBPUSD on the 1H chart and explain the concept of how
a liquidity grab was performed and why it was performed.
The Purpose...
of this explanation video, is to serve as a reminder by explaining of one
of the key fundamentals of trading for accurate predictability by using the
Market Structure.
Why is this important?
The Foreign Exchange Market, any market even, requires 'Liquidity' or 'Volume' to
create the charts that you see on your computer screen in the first place.
'Liquidity' (essentially) = $$$ (Money in the form of your stop loss)
Large moves in the market require large liquidity, hence why so often you will
see a large spike in the market that seems to make no sense and may stop you out of your
position, before then moving in your predicted direction. With this in mind,
its very important to be mindful of how these 'Liquidity' Grabs are created and to
be able to differentiate, a Liquidity Grab, from a true price push, so this way you will
be able to trade with the trend accurately instead of against it.
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