Liquidation
USDJPY DAILY - SHORTPrices tapped into the daily supply zone, made a shift breaking out of structure. However, it failed to make a lower higher, and therefore failed to transition into a lower low to make a downtrend.
This resulted in prices having the intention to mitigate higher prices within the daily supply, into refined areas like the H4 and H8 supply zones. In a similar fashion, look for the transfer of strong hands into weak hands before taking potential SELLS.
UNDERSTANDING LIQUIDITYIn this quick and easy lesson, I will break down the concept of liquidity.
If you retain the thought that liquidity stands for an area where stop losses are you will grasp this concept quickly.
We often see spikes into areas of liquidity before true moves continue, this is so that banks can capture as many orders as possible before they depart from the area.