Educational Series - Smart Money Concepts ( Liquidity )
Hi there guys!
I will be doing a short tutorial on Smart Money Concept's liquidity.
What is it?
- Liquidity acts as a driver to move the market in a specific price range.
- We can find liquidity in areas where many people place stop losses and buy/sell stops.
- Market makers will manipulate the price in order to break through these obvious zones and seize the liquidity.
How to look for them
- You will be looking for areas where price are of relative equal highs/lows.
- Areas where price has not gone to swept the "stop losses"
Why is it useful?
- Helps to forecast where price might potentially head to
- Potential areas for take profits upon clearing of liquidity
- Avoid placing your stop loss at liquidity areas
It takes some time to learn how to spot liquidity.
If you do enjoy this tutorial, feel free to follow me and boost this post! :)
Regards,
Chen Yongjin
I will be doing a short tutorial on Smart Money Concept's liquidity.
What is it?
- Liquidity acts as a driver to move the market in a specific price range.
- We can find liquidity in areas where many people place stop losses and buy/sell stops.
- Market makers will manipulate the price in order to break through these obvious zones and seize the liquidity.
How to look for them
- You will be looking for areas where price are of relative equal highs/lows.
- Areas where price has not gone to swept the "stop losses"
Why is it useful?
- Helps to forecast where price might potentially head to
- Potential areas for take profits upon clearing of liquidity
- Avoid placing your stop loss at liquidity areas
It takes some time to learn how to spot liquidity.
If you do enjoy this tutorial, feel free to follow me and boost this post! :)
Regards,
Chen Yongjin
Note
Feel free to message me if you guys need some help :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.