Quarter Theory: Mastering Algorithmic Price Movements!Greetings Traders, and welcome back!
In today's video, we’ll dive deep into Quarter Theory—a powerful concept that can take your trading to the next level. We’ll break it down step-by-step, explain how it works, and show you how to implement it into your strategy.
Quarter Theory is all about studying the algorithmic price delivery within the markets. It’s grounded in Time and Price Theory, which suggests that significant market moves often occur at specific price levels and times. This foundational idea will help us predict price movements more effectively.
If you haven’t already, be sure to check out the previous videos in the High Probability Trading Zones playlist for the key concepts you’ll need to fully grasp today’s content. For those watching on TradingView, links to previous videos will be included to help you catch up.
Mastering Institutional Order Flow & Price Delivery:
Premium & Discount Price Delivery in Institutional Trading:
We’re kicking off a weekly series on Quarter Theory, with the goal of helping you build a robust trading model by the end. Stay tuned!
Best Regards,
The_Architect
Liquidity
Gold Spot (XAU/USD) Nears Key Resistance: Major Move Ahead?Gold Spot (XAU/USD) Market Analysis - August 13, 2024
Daily Chart Overview
- Broadening Wedge Pattern: The daily chart reveals a broadening wedge pattern, often associated with market indecision and potential reversal signals. This pattern, characterized by expanding volatility, suggests that the market is at a critical juncture, with the possibility of either continuing its uptrend or facing a significant correction.
- Ascending Channel (Bullish Flag): Within this broader wedge, a smaller ascending channel (bullish flag) has formed. While typically a continuation pattern, the flag is currently struggling to maintain its structure as price action approaches a significant resistance zone.
- Key Resistance Levels (Daily Liquidity Zone):
- The price is hovering just below the Daily Liquidity Zone (LQZ), ranging between 2,477.654 and 2,484.053. This area also aligns with the previous higher high, marking it as a critical resistance zone.
- A failure to break above this zone could lead to a reversal, while a successful breakout would open the path for continued bullish momentum.
- Support Levels:
- The Lower boundary of the ascending channel around 2,454.606 (which aligns with the 15M Liquidity Zone) serves as immediate support.
- A breakdown from this level could trigger a deeper correction towards the lower trendline of the broadening wedge, likely around the 2,420 - 2,430area.
4-Hour and 1-Hour Chart Insights
- Broadening Top Formation (4H): Echoing the daily pattern, the 4H chart displays a broadening top, indicating increased market volatility and a potential battle between buyers and sellers.
- Descending Channel (1H): A descending channel has formed within the broadening top on the 1H chart, suggesting a short-term bearish bias. This descending channel is pressing against the 4H and Daily LQZ, increasing the likelihood of a significant price movement soon.
15-Minute Chart Considerations
- Bear Flag Formation: The 15M chart shows a bear flag, a continuation pattern that could signal further downside. This pattern is forming near the 15M LQZ, reinforcing the importance of this support level.
- Potential Breakdown: The price is testing the lower boundary of this bear flag. A breakdown here could lead to a continuation of the downtrend, particularly if the 15M LQZ fails to hold.
Mass Psychology & Market Sentiment
- Indecision and Volatility: The broadening patterns across multiple time frames reflect growing market indecision and volatility. Traders should be cautious as this setup often leads to sharp and unpredictable price movements.
- Watch for Divergences: Keep an eye on potential bearish divergences on momentum indicators like RSI or MACD, particularly around the key resistance levels. These could provide early signals of a market reversal.
Trading Strategy Recommendations
- Wait for Confirmation: Given the critical resistance at the Daily LQZ, it’s prudent to wait for clear confirmation of either a breakout or a reversal. A strong daily close above the LQZ would be more convincing for bullish continuation.
- Short-Term Bias: On the lower time frames (15M and 1H), the bias remains bearish. Caution is advised for long positions until there's a definitive break above resistance.
- Risk Management: Considering the broadening patterns and associated volatility, tighter stop losses or reduced position sizes are recommended to manage risk effectively.
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Summary: Gold Spot (XAU/USD) is at a crucial inflection point, with significant resistance at the Daily LQZ and potential support at the 15M LQZ. Traders should closely monitor price action in the coming sessions, as a decisive move in either direction could set the tone for the next major trend.
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This was a MOVIE! Prepare to be entertained.. To say the least!This video is as real and transparent as it gets in the trading world. Hope you appreciate it as much as I learned from it.
Final profit on this trade/video as we got cut off right at the drop - $560 and counting.
This was legit a movie - For anyone who watches this whole thing, I hope you enjoyed and learned some important lessons about the nature of the market, human psychology, and the importance of having a trading plan. Probably the most up & down wild hour of trading i've had in a long time. I will be rewatching this one for years to come. Lots of lessons learned in 1 video.
Happy Trading to everyone.
Can Gold Surpass Its Recent Highs? Expert Analysis Inside!Key Levels:
Higher High (HH): Marked near the top at around 2460.
Lower High (LH): Slightly lower high indicating a possible trend change.
Support/Resistance Zones: Key support/resistance levels are identified on the chart.
Lower Time Frame (LTF) Lower High: Indicated by a yellow line, suggesting a lower high on a smaller timeframe within the larger trend.
Liquidity Zones (LQZ): Marked on the 4-hour, 1-hour, and daily timeframes indicating potential areas of liquidity.
Market Structure:
Shorter Time Frame Higher Low: A higher low is indicated on a smaller timeframe, suggesting potential bullish continuation.
Barley Missed HH and then pushed down: Indicates a failure to achieve a higher high, followed by a downward movement.
Support Rejection: The market rejects off support, suggesting a possible formation of a new higher low (HL).
Observations:
The market is reacting to support and resistance levels, showing signs of potential trend continuation or reversal.
The presence of multiple liquidity zones suggests areas where price might seek liquidity, influencing future price movements.
This Simple Error Cost Me Big on XAUUSD! Learn From My Mistakes!Key Levels and Zones
Highs and Lows:
HH (Higher High) and LH (Lower High) are marked on the chart.
The chart shows a recent HH and LH indicating a bullish trend with a potential pullback.
Liquidity Zones (LQZ):
4HR LQZ at 2474.891: This zone might act as a significant resistance level.
4HR LQZ at 2432.126 - 2432.046: This zone was previously a resistance level that may now act as support.
4HR LQZ at 2348.453: Another support zone lower on the chart.
Daily Bull Flag:
A daily bull flag is drawn, suggesting a potential continuation of the bullish trend if the price breaks out upwards.
Trading Plan
Identify Key Zones:
Mark key support and resistance levels on your trading platform.
Wait for Confirmation:
Look for confirmation signals (candlestick patterns, volume spikes) before entering a trade.
Set Alerts:
Use trading alerts to get notified when the price reaches key levels.
Risk Management:
Always use a stop loss to protect your capital.
Ensure your risk-reward ratio is at least 1:2.
Review and Adjust:
Regularly review your trades and adjust your strategy based on market conditions.
Gold Breakout Imminent? Uncover the Explosive Potential of GOLD!Current Trend
Bull Flag Formation: The chart indicates a bull flag pattern, a bullish continuation pattern that usually occurs after a strong uptrend (flagpole). The consolidation within the flag is typically a pause before the next upward move.
Trendlines: The yellow trendlines outlining the flag suggest that the price is currently testing the upper boundary of this consolidation range.
Fibonacci Retracement Levels
78.60%: This level is around 2431.637 (coincides with a 4HR LQZ), acting as a strong resistance zone.
61.80%: Around 2410.880, which the current price has just crossed, potentially indicating bullish momentum.
50.00%: Around 2393.940, served as a support level during the consolidation.
38.20%: Around 2372.760, another support level during the consolidation.
Liquidity Zones (LQZ)
4HR LQZ at 2431.637: A significant resistance zone that aligns with the 78.60% Fibonacci retracement level. This is a critical area to watch for potential price reaction.
4HR LQZ at 2349.449: A key support zone which held during the recent consolidation phase.
Price Action
Current Price: At 2410.880, the price is approaching the critical resistance at the 4HR LQZ (2431.637).
Breakout Potential: If the price can break and hold above the 2431.637 level, it may confirm the continuation of the bullish trend, targeting higher liquidity zones.
Support Levels: The price needs to stay above the 61.80% Fibonacci retracement level (2410.880) to maintain bullish momentum. A drop below could lead to further consolidation or a bearish reversal.
Daily Bull Flag
Upper Trendline: The price nearing the upper trendline of the daily bull flag indicates potential breakout if breached.
Lower Trendline: Support if the price pulls back.
Trading Strategy
Long Entry:
Upon a confirmed breakout above the 4HR LQZ at 2431.637, with a potential target of the next daily liquidity zone at 2475.281.
Use the 50.00% retracement level (2393.940) as a support for placing stop-loss to protect against downside risk.
Short Entry:
If the price fails to break above the 4HR LQZ and shows bearish reversal signs, a short trade could be considered with a target back to the lower 4HR LQZ at 2349.449.
Use the current price level (2410.880) as a resistance for stop-loss placement.
Risk Management:
Utilize appropriate position sizing and risk management to account for volatility and potential price fluctuations.
Summary
Bullish Outlook: If the price breaks above the 2431.637 level, indicating a continuation of the bull flag pattern, with targets at 2475.281 and beyond.
Bearish Outlook: If the price fails to break above 2431.637 and shows a reversal, potential downside targets include 2393.940 and 2349.449.
Monitoring the price action around these critical levels will be crucial in determining the next significant move for XAUUSD.
Missed the XAUUSD Move? Here’s What You Overlooked!1. Daily Trendline
Description: The yellow trendline running across the chart represents the overall upward trend on the daily timeframe. It shows that despite the recent fluctuations, the long-term trend has been bullish.
Significance: This trendline serves as a dynamic support level. Traders often look for price action around this trendline to gauge the strength of the ongoing trend. A break below this trendline could signal a potential reversal or a stronger bearish movement.
2. Ascending Channel
Larger Ascending Channel:
Description: This channel is characterized by two parallel lines (yellow) sloping upwards. The price has been moving within this channel for a considerable period.
Significance: The upper boundary acts as resistance, while the lower boundary serves as support. The price breaking below the lower boundary can indicate the end of the bullish trend and the beginning of a bearish trend.
Smaller Ascending Channel:
Description: A smaller channel within the larger context, indicating a shorter-term upward movement.
Significance: The break below this smaller channel, as shown on the chart, signifies a potential reversal or correction within the larger trend.
3. Support/Resistance
Description: Horizontal lines marked as support and resistance represent key price levels where the price has historically faced buying or selling pressure.
Significance: These levels are crucial for identifying potential entry and exit points. The support level acts as a floor where buying interest is strong enough to prevent the price from falling further. Conversely, the resistance level acts as a ceiling where selling interest prevents the price from rising further.
4. Higher High (HH) and Lower High (LH)
HH (Higher High):
Description: A peak higher than the previous peak, indicating the continuation of an uptrend.
Significance: The formation of a higher high typically signals bullish momentum. However, in this case, the subsequent failure to maintain this level and the formation of a lower high (LH) suggests weakening bullish strength.
LH (Lower High):
Description: A peak lower than the previous peak, indicating potential trend reversal.
Significance: The lower high after a higher high is a bearish signal, suggesting that buyers are losing control and sellers are gaining strength.
5. 15M/5M Bear Flag Entry
Description: A bear flag pattern on the 15-minute and 5-minute timeframes is highlighted. This pattern consists of a sharp decline followed by a short consolidation in the form of an upward-sloping channel (flag).
Significance: The bear flag is a continuation pattern, indicating that after a brief consolidation, the price is likely to continue its downward movement. The breakout from this flag pattern provides a potential entry point for short positions.
6. Target Profit Levels (TP 1 and Daily LQZ/TP 2)
TP 1 (2,347.560):
Description: The first target profit level is set at 2,347.560.
Significance: This level is likely determined based on historical support levels or a measured move from the recent price action. Traders might look to take partial profits or exit their positions at this level.
Daily LQZ/TP 2 (2,265.195):
Description: The second target profit level is set at 2,265.195, which aligns with the daily liquidity zone.
Significance: This is a more ambitious target, potentially indicating a stronger bearish move. The liquidity zone suggests an area with significant trading volume, which could act as a magnet for the price.
Conclusion
The chart presents a comprehensive analysis of the XAUUSD (Gold Spot) with multiple technical indicators suggesting a potential bearish outlook. The breakdown from the ascending channels, the formation of a lower high, and the bear flag pattern all point towards a continuation of the downward trend. The identified support and resistance levels, along with the target profit zones, provide clear benchmarks for managing trades.
Gold's Next Big Move: Will XAUUSD Break Resistance or Crash? Chart 1: 4-Hour Timeframe
Trend Analysis:
The chart shows a clear upward trend, forming higher highs and higher lows.
A wedge pattern is visible with converging trend lines indicating a potential breakout scenario.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240.
Major Resistance: The upper trendline around 2480.
Recent Price Action:
The price has recently tested the lower trendline support and is currently retracing upwards.
A lower high (LH) has formed around 2480, suggesting a potential reversal or consolidation phase.
Potential Scenarios:
Bullish: If the price breaks above the 2412 resistance, it may retest the upper trendline around 2480.
Bearish: A break below the 4hr LQZ at 2348.248 could signal further downside towards the daily LQZ at 2267.320.
Chart 2: 1-Hour Timeframe
Trend Analysis:
A shorter-term view confirming the upward trend with higher highs and higher lows.
The formation of a wedge pattern indicates consolidation within a narrowing price range.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240, coinciding with the previous chart.
Recent Price Action:
Price recently bounced off the 4hr LQZ support level and is now hovering near the 2412 resistance.
The lower high (LH) indicates sellers are stepping in around the 2412 level.
Potential Scenarios:
Bullish: Breaking and closing above 2412 could lead to further upside towards 2480.
Bearish: Rejection at 2412 and a break below recent lows could target the 4hr LQZ support at 2348.248.
Chart 3: 15-Minute Timeframe
Trend Analysis:
Short-term consolidation observed within a wedge pattern.
Recent price action indicates potential for a breakout or breakdown from this pattern.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240.
Recent Price Action:
Price is consolidating just below the 2412 resistance level, forming a wedge pattern.
The 15-minute timeframe shows the price struggling to break above 2412.
Potential Scenarios:
Bullish: A breakout above the wedge and 2412 resistance could lead to a quick move towards 2480.
Bearish: A breakdown from the wedge could revisit the 4hr LQZ support at 2348.248.
Conclusion
The overall trend across multiple timeframes remains bullish with key resistance at 2412 and significant support at 2348.248. A break above 2412 could signal further upside towards 2480, while a failure to break and sustain above this level may lead to consolidation or a pullback to the 4hr LQZ support. Monitoring price action around these key levels will provide insights into the next directional move.
Gold’s Next Big Move: Critical Levels You Can’t Afford to Miss!Hey Traders, welcome back to my channel! 🚀
Today, we're diving deep into the latest XAUUSD analysis, and trust me, you don't want to miss this one. With gold prices poised for a significant move, understanding these key levels could make all the difference in your trading strategy.
Let's get started with the 1-hour chart (shown below). 📊
Chart 1: XAUUSD 1-Hour Time Frame Analysis (July 21, 2024)
Key Observations:
Daily Bull Flag Formation:
The chart highlights a daily bull flag pattern, which indicates a continuation pattern following a strong uptrend. On the daily TF sometimes this can take a bit longer to see due to how big this flag is on the (LTF)
The price has been consolidating within this flag formation.
Reversal Structure (Lower High - LH):
There is a reversal structure where the price made a lower high (LH), suggesting a potential bearish reversal in the short term.
Structure LTF (Lower Time Frame):
The price structure on the lower time frame indicates an area where price could pull back and reject off of this area indicating the continuation of the Overall move.
The second way this could play off of this area is we could get a clear impulsive move above this structure and then a rejection looking for higher moves in the Shorter Time Frame.
15-Minute Time Frame:
The 15-minute time frame shows a detailed view of the consolidation and break down from the flag formation. where you could see how close we are to the LQZ shown on the 1HR
1HR Liquidity Zone (LQZ):
Identified at 2,390.966, this zone may act as a significant support area and also our first Take Profit we gave last week.
4HR Liquidity Zone:
Marked at 2,349.179, another major support area that aligns with the daily LQZ. If price end up breaking the 1HR LQZ impulsively then we could look for this area as Take Profit and then once we get down to this area we could potentially see a pullback.
Daily LQZ:
The daily liquidity zone is at 2,286.809, a crucial support level for the longer-term perspective.
Recommendations:
Watch for Reactions at Support Levels:
Monitor the price action around the 1HR, 4HR, and daily LQZs for potential entry points.
Set Alerts:
Set alerts for breakouts above the recent highs and breakdowns below the key support levels.
Manage Risk:
Ensure proper risk management by setting stop-losses below support levels and taking profits at resistance levels.
How I found and identified Five 100%+ return swing trades!It's not too late! My job i to identify the liquidity being built and since we're trading options, time the breakout as best we can. As you can see on these 3 equities, in addition to 2 more I'm trading (PYPL, UPS), we've built sufficient liquidity over the past few months in order to make these breakouts.
So keep an eye out for controlled selling and re-entry opportunities - it's never too late to catch another breakout!
Happy Trading :)
Liquidity is KEY to the MarketsIn this video I go through more about liquidity and why it is important.
The markets move because of liquidity. Without liquidity, there is no trading. The larger the trader, the larger the liquidity required. Understanding the concept of liquidity and the fractal nature of price, trading becomes very interesting. A whole new world opens up to you and you no longer have to keep guessing where price is going. You no longer have to keep chasing candles.
I hope you find this video insightful.
- R2F
Bitcoin at a Critical Level: What Investors Need to KnowBitcoin ( BITSTAMP:BTCUSD ) is currently at a crucial juncture. The 3-month chart suggests that if Bitcoin drops below the $50,000 level before moving above $70,000, we could see further downside, potentially to the $40,000 - $35,000 range.
Election Impact
This potential scenario might coincide with the upcoming election, which could have a significant impact on market sentiment and liquidity. Political events often introduce volatility and uncertainty, affecting investor confidence and market stability.
Investment and Trading Strategy
For investors, a potential dip to the $40,000 - $35,000 range presents a buying opportunity. However, traders should consider hedging their positions to profit in case of further declines. This approach can help manage risks and take advantage of market fluctuations.
Long-term Outlook
Over the next 6 to 8 months, these market dynamics could lead to increased buy-side liquidity and higher prices. This period of stabilization might create a more favorable environment for Bitcoin and other cryptocurrencies.
Conclusion
While the short-term may bring challenges, particularly due to the election, the long-term outlook remains positive. Investors and traders should prepare for potential short-term declines but remain optimistic about increased liquidity and higher market prices in the future.
Premium & Discount Price Delivery in Institutional TradingGreetings Traders!
In today's educational video, we will delve into the concepts of premium and discount price delivery. The objective is to provide you with a comprehensive understanding of institutional-level market mechanics. Before we proceed, it is crucial to define what we mean by "institutional level" and "smart money," as these terms are often misunderstood. We will also address the common misconceptions about who the liquidity providers are in the market.
By grasping these foundational concepts, you will gain a new perspective on the market, realizing that its movements are not random but calculated and precise, orchestrated by well-informed entities often referred to as smart money.
If you have any questions, please leave them in the comment section below.
Best Regards,
The_Architect
Mastering Institutional Order Flow & Price DeliveryGreetings traders!
Welcome back to today's video! In this educational session, we'll delve into the concept of institutional order flow. Our objective is to accurately identify market reversals and trend continuations. By mastering the draw on liquidity, we will gain a clearer understanding of whether the market is experiencing bullish or bearish institutional order flow. To accomplish this, we will analyze the behavior of smart money and trace their footprints.
Join us as we uncover these crucial insights together.
If you haven't seen the " Premium & Discount Price Delivery in Institutional Trading " video, here is the link:
Happy Trading,
The_Architect
ICT's Market Maker Model - An Easy to Understand GuideIn this video I try to explain ICT's Market Maker Model as simply as I can.
This model basically depicts how smart money efficiently facilitates their positions in the marketplace. It is important to understand some concepts beforehand, such as liquidity, AMD/PO3, market efficiency, crowd mentality, and the fractal nature of price.
I hope you find the video insightful and that it helps you utilize Market Maker Models in your trading.
- R2F
Trade Like A Sniper - Episode 9 - NQ1- (31st May 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions.
A couple of things to note:
- I cannot see news events.
- I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range.
- I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks
In this session I will be analyzing E-mini NASDAQ, starting from the Weekly chart.
- R2F
Let's Talk Liquidity! ⚒️At first, Liquidity may seem like an abstract and confusing concept reserved for only those Finance nerds and geeks to tackle. Turns out it's really not too sophisticated after all and can be though of in terms of Fomo. Fomo if you are not aware already is simply a concept related to chasing the market because of a Fear of missing out. Any action out of fear is typically not the best choice. In trading, this is especially true.
Liquidity is what the market needs prior to a big move. Liquidity doesn't necessarily mean that the market needs to pin an extreme low or high from the previous session. Liquidity is also gathered when the market ranges/consolidates for awhile. If you go back and backtest, you will observe that preceding a large move, the market usually consolidates first. Liquidity also dries up during Asian session. You can observe that the volatility is much smaller than London/Ny session as the market moves alot less # of pips. Liquidity dries up prior to news annoucnemnts becuase of uncertainty obviously. This is the very reason why the market moves so much during news is because of lower participation from larger market participants, therefore an increased chance of wild and random price movements.
This is explained more in depth in this concept video, Let's talk Liquidity.
GBPUSD Weekly Outlook: High Impact News & Sell-Side Draw📈 Trading Alert: High Impact News Incoming this Week on the Dollar!!!
March Market Insights:
Diving into High Impact Dollar News & Today's Trading Analysis! This week, brace yourself for major announcements like Unemployment Rate and NFP . Join me as we dissect the week ahead , exploring potential market movements amidst a flurry of impactful news releases. Gain invaluable insights into my analysis process, including key concepts in ICT. Don't miss out on this opportunity to enhance your trading knowledge and strategies.
Leave your questions in the comments for personalized responses. Let's navigate the markets together!
Kind Regards,
The_Architect
A further breakdown of how I read the market and all the "lines"Key words to understand:
- Tapering
- Liquidity
- Tapering
- Tapering
It's important to understand how liquidity plays a role in moving price and what it actually means. In order for price to make a solid move anywhere, there has to be liquidity built up for price to grab (use) to break out of strong resistance levels (i.e. levels with lots of sellers ready to short when price gets there).
Tapering is a way of seeing a lack of liquidity by a certain side - if we begin tapering from a strong buying channel to a less strong buying channel, it typically means we are lacking liquidity to break out of that strong selling level (i.e. the top of a more tapered channel acts as a level of resistance because the more tapered it is (or the more horizontal it is), the more it lines up for all sellers to get in at the same price win the battle.
This all makes so much sense to me and it is the key for you to unlock the market . To be able to tell a story in every chart and understand who is in charge, why there in charge, and what each side has to do in order to win their next battle.
Please reach out with any questions, comments, etc. I am here for you !
Happy Trading :)
High Impact Dollar News Signals Sellside Draw for NAS100USD📈 Market in Focus: Core PPI m/m and PPI m/m Data Release Awaited 🕒
🕣 Time: 08:30 NY Time
📰 Event: Core PPI m/m and PPI m/m Release
Today, all eyes are on the imminent release of Core PPI m/m and PPI m/m data , offering insight into changes in the price of finished goods and services sold by producers, with the exclusion of food and energy.
Currently, we find ourselves at premium price levels on NAS100USD , having mitigated into a significant H4 Inducement Order Block. This situation suggests a potential sellside draw towards discount H4 Sell Stops . Stay tuned for further developments.
Kind Regards,
The_Architect
High Impact Dollar News Signals Potential Buyside Draw for DXY 📈 Trading Alert: High Impact News Incoming!
🕣 Time: 08:30 NY Time
📰 Event: Core PPI m/m and PPI m/m Release
Today marks a pivotal moment in the market as we await the release of Core PPI m/m and PPI m/m data. These indicators shed light on the change in the price of finished goods and services sold by producers, excluding food and energy.
Based on meticulous analysis, my prediction points towards a favorable response for the Dollar. I anticipate a robust bullish draw in the DXY for the remainder of the month.
Yesterday's analysis proved prescient, accurately forecasting the impact of the High Impact News release during the NY Session . As anticipated, price filled the H4 Order Block and the Liquidity Void left by Tuesday's CPI release. This sets the stage for continued bullish momentum throughout the month.
For a comprehensive understanding, please refer to yesterday's DXY analysis and my Long-Term DXY Bullish Narrative analysis below . Stay tuned for further insights and updates.
Refer: Yesterdays DXY Analysis
Refer: Long-Term DXY Bullish Narrative Analysis
Kind Regards,
The_Architect
Understanding LIQUIDITYIn this video I try to explain liquidity as it pertains to training in a simple manner.
Liquidity are basically orders in the marketplace. Since trading is a zero-sum game, without liquidity, there is no trading. Simply put, If you wanted to BUY, then you would need someone to SELL to you, and vice versa.
Smart Money has deep pockets and needs a large amount of liquidity to facilitate their positions. They want to be able to get in and our of their trades, as well as to be able to trade with capital that would be worth the reward.
The largest pools of liquidity usually reside above swing highs and lows, and equal highs and lows (double/triple tops and bottoms). Support and Resistance ideologies dominate the market, and besides that, psychologically it makes sense to put stoplosses at such areas rather than at some random area within a range. There are also breakout traders who see price breaking out of an area as a sign of strength (or weakness if bearish) and they set their entries above/below these levels. This is how liquidity is "engineered" in the market and sentiment manipulated. These pools of liquidity can be seen as a magnet, drawing price to these levels, either to grab liquidity before reversing or continuing in its current direction.
- R2F
High and Low Liquidity Pivots. Which ones do I choose?Welcome to the coffee shop everybody this is your host and Baristo Eric, and I'm here today to let you guys know about the difference between high liquidity and low liquidity pivots and when I say pivots I mean price levels in the market. I want you to keep in mind that this trick works on all time frames it doesn't matter what time frame you're looking at but it certainly works best if you're comparing the high time frame to the low time frame that you're trading on.
This is a price action trick and strategy that you do not need an indicator for. Which means you can never get this wrong as you long as you follow these rules but the minute you try using an indicator for this you're going to miss out on some important details.
Now obviously there's a few rules that you need to follow when you're looking for high liquidity or low liquidity pivots and in the image above you should be able to see it but in the text below I'll give you my breakdown of the 123 rule that you can really follow to understand what you're looking for.
Here's a few rules to follow:
1. Bullish candles make high pivots
2. Bearish candles make low pivots
3.the length of the Wick of the candle is the trigger to tell you what you're looking for.
You cannot find low or high liquidity in a market during the trend. You can only see it after the trend has finished and you are either currently ranging or you are in the alternate trend meaning you were in a downtrend and now you're in an uptrend or a sideways market. You want to look for these liquidity types in the previous trend but using the strategy in this video you can also find high and low liquidity in arranging markets simply by looking at the ranging market that previously took place.
The trick to finding liquidity in the market goes like this:
Finding Sell Liquidity (Resistance) in previous market moves.
If you were in a downtrend and now it has completed you can look backwards at that downtrend and find all the bullish candles that will reflect the rules you were looking for.
Look at the downtrend and find the bullish candles.
You want the bullish candles that had swing highs and their upper Wick is longer than their lower Wick.
If the previous market was an uptrend you simply wanna do the opposite:
and previously up trending market you wanna find all the bearish candles and those bearish candles need to have a swing low Wick plus the Wick on the bottom must be longer than the Wick on top. These will reflect your SUPPORT levels (Buy Liquidity)
One of the questions often asked is what do you do with these levels once you find them.
Once you find low liquidity levels you wanna mark them this way you can treat them as plausible breakout areas meaning that with low liquidity in these areas price will reach those areas later on and price will continue to move through them because there are very few participants trying to buy or sell in a low liquidity area.
High liquidity area however simply means there is a lot of volume lot of activity and when price reaches back to these levels that price will either stall or reverse at these levels.
High liquidity areas also mean that these are banks and institutions trading at these levels so price can pull away from it retest and then come back to it for a very large move initiated by that same level.