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Liquidity

The DIP in Bitcoin confirms and persists...Last week I posted about the suspiciously bearish signal in Bitcoin. Turns out it was correct. *back pat*. The one day spike was followed immediately by a -5.85% reversal. Nothing beats liquidity. The question now is do we go up from here? My eggs are in the 'no' basket. While it's true that overall we're in a bullish flow state, the yellow countertrend signals should always be respected. After all, they are precursors to trend changes. ... and the times it doesn't signal a trend change, it still portends a short-term move or contextualizes one that has recently occurred. So my expectation is that we see $28K before $35K. And hey, if the dip reverses with a green bounce, well then probably a good idea to pile in because that would be -- as the kids would say -- bullish af.
BITSTAMP:BTCUSDShort
by sacredprofit
GOLD/XAUUSD BUY AND THEN SELL or BUY?🔰 Pair Name : XAU/USD 🔰 Time Frame : 1 HOUR 🔰 Scale Type : MID SCALE 🔰 Direction: BUY THEN SELL During the US 4th of July bank holiday, Gold experienced minimal price movement. On Monday, the price reached $1930.76, which corresponds to the Fibonacci level, and then spent the following two days retesting the 78.6% Fibonacci level within the range of $1922.64. If you are uncertain about trading within channels, it may be beneficial to analyze demand and supply zones, as well as Fibonacci tools. Currently, Gold exhibits a robust bullish momentum towards the Fibonacci level at $1938.99, precisely aligned with its recent one-hour key high. With the imminent release of the FOMC minutes later today, we expect the Gold price to continue rising towards the $1938.99 area, representing the Fibonacci extension level of 121.7%. However, there is a possibility of a false breakout occurring at the key high level, leading to the extraction of remaining liquidity that has accumulated over the past week and a half. Subsequently, we may witness a decline towards at least $1930.76, followed by $1926.43 at the Fibonacci levels of 100% and 88.6% respectively. Depending on market conditions, there is a chance that the price may either drop further to $1892 or rise to the Fibonacci extension level of 161.8% to address the significant market imbalance between the $1939 to $1950 range. The subsequent price action will heavily depend on the outcome of the FOMC meeting tonight and any significant news announcements expected tomorrow. We recommend staying updated with our team's insights and analysis.
TVC:GOLDLong
by Moon_SmartMoney
1
Shift In Market Structure Or Liquidity Grab By Smart Money????Look at the Us30, GBPUSD and EURUSD charts attached to this post, what do you see???? GBPUSD Do you see a shift in market structure or Liquidity grab by smart money algorithm? In financial market trading, one key to determine where the liquidity that the market will run next is located is to ask yourself who are those making money from the current move.... Where are they likely to trail their stops to. Whatever your answer is, that is the liquidity the algorithm will most likely run first to continue in the intended direction... With this understanding, you should now be able to understand that not all structure shift in a bullish or bearish market is a shift in market structure. The majority are liquidity grabs by smart money algorithm. US30
Education
by Elijahenoch7
STRONG confluence between Bitcoin and the Dollar Over the last couple of weeks, we've been focusing on BTC and USD. This is due to that fact that they are both on the verge of large moves. Given their inverse correlation, it's useful to follow both together as an indication for how liquidity is affecting the markets. On June 30, we pointed out the flow signal that appeared on the weekly and daily candles for Bitcoin. This is usually followed by a +30% move within 30 days. This was followed a week later by a daily high tide signal, which indicated a slow down in price momentum often followed by a drop towards the next support area. We did get a drop, but it was only -5.4%. Does this mean there's more upward pressure than is immediately visible? The monthly current is continuing its march upwards as it is now forming a higher high versus its last one in April. Plus we're still in bullish flow territory. More interesting to me is the ebb signal on USD that appeared yesterday. And with the high tide signal a six weeks ago, this would be right on trend to send the dollar to its lustrum in the 97 area and Bitcoin way up. I do find myself hesitating, though. Dollar down, bitcoin up in perfect unity to perfectly predictable levels... markets like to inflict max pain on participants. The dollar blasting higher would do that. But I'll admit that by the looks of it, the dollar's got some bearish flavours working for it.
BITSTAMP:BTCUSD
by sacredprofit
GOLD/ XAUUSD LONG/BUY🔰 Pair Name : XAU/USD 🔰 Time Frame : 4H 🔰 Scale Type : MID Scale 🔰 Direction : SELL THEN BUY Undoubtedly, Gold remains subjected to significant selling pressure. Nonetheless, considering the technical aspects, it is crucial to emphasize that Gold is presently in the process of rebalancing the market through the accumulation of liquidity within the range of 1937-1940. As the price nears the 1921 level and subsequently retests the manipulation zone of 1909-1910, it indicates that Gold is likely prepared to capitalize on the liquidity available at the 1H Supply Zone, specifically around its hourly key high near 1937. This situation presents a favorable opportunity for a retracement, aiming to rectify the market imbalances that have developed over recent weeks. Based on our projections, the potential price target is expected to reside within the range of 1937-1940. Considering these observations, it is paramount to exercise caution and make well-informed trading decisions, while maintaining a vigilant approach to the dynamics of the market.
TVC:GOLDLong
by Moon_SmartMoney
How to work with liquidity grab?Hello everyone👋 Today we will discuss how to effectively work with areas of increased liquidity. Actually, it would be appropriate to make this post after we have examined how order flow is formed in the market in order to understand the technical aspect of working with liquidity. Therefore, first, we will provide some introductory information using a long position as an example. When a trader buys an asset, they usually set a stop loss at a certain level or, if they don't use protective orders, their position will have a liquidation price depending on the chosen leverage. Based on this, when a specific price level is reached (stop loss or liquidation), their asset will be sold with a market order that will match the nearest limit order. Hence the conclusion: any exit from a losing position, as described above, is someone else's entry into a position with a limit order, often at a favorable price. This is how the positions of all major market participants are accumulated. So, we simply need to estimate where the maximum number of active stop losses is located and make a trading decision based on that. Most often, stop orders are located in the following zones: 1️⃣Obvious levels with equal highs/lows. 2️⃣Above/below any high/low in an obvious trend. After identifying such zones using our indicator or independently, you can take trades in the direction of liquidity grab (counter-trend trades with high potential but also high risk) or wait for actual liquidity grab and confirmation to enter a trend trade. In the next post, we will explore the technical aspect of liquidity grab for a deeper understanding of the topic. We look forward to your questions. Happy trading!
Education
by PhantomFlow
GBP/JPY SHORT/ SELL🔰 Pair Name : GBP/JPY 🔰 Time Frame : 4H 🔰 Scale Type : MID Scale 🔰 Direction : SELL GBP/JPY has experienced a bullish run in recent weeks, leaving significant liquidity and market imbalances in its wake. This week, the price broke above the upper trend channel on the daily chart, indicating a potential shift in direction. Currently, it appears that the price is preparing to retest the previous uptrend channel. As professional traders, we anticipate a retracement towards the 180.5 daily support level, followed by a move towards 179.03 to refill the market imbalance. By revisiting these levels, the price will potentially find support and re-establish a balanced market structure. It is important to monitor price action closely and evaluate any signs of a reversal or continuation during this retracement. Stay vigilant and adapt your trading strategy accordingly as the price retraces and seeks equilibrium within the established uptrend channels.
Short
by Moon_SmartMoney
Does Bitcoin SLIDE into a bounce?Notice that there is no strong buying signal (green dot) on the candle following the strong selling (red dot). This is generally negative on the price indicating that there's more short-term downside to come. However, it should be noted that the monthly current is still moving upwards suggesting that support is steadily increasing. As this continues, it makes a drop to the seasonal current that much less likely. Once again, because the flow signal has not yet been negated, the overall trend is still bullish. We'd need to see a yellow dip signal indicating a withdrawing of liquidity to start looking more seriously towards the downside.
BITSTAMP:BTCUSD
by sacredprofit
Bitcoin Next BIG MoveFollowing up on my earlier post, it's evident that the strong high tide signal persists, signaling upward resistance based on momentum dynamics. Bear in mind, the flow signal remains unchallenged, as demonstrated by the price ascending back to the local high before retreating. This indicates the presence of a selling zone that must be surpassed before the price can progress upwards. Looking at today's candle, there's a definitive sell signal exhibited by Energy (symbolized by a red dot over the candle). This implies that there's still substantial room for today's candle to decrease before the energy begins to fade.
BITSTAMP:BTCUSDShort
by sacredprofit
Market Makers Buy And Sell ModelThe market Makers' Buy and Sell Model is a strategy that reveals the market maker algorithm model for price delivery. Basically, there are 3 things market makers' algorithms do with price in every trading session, day, week, and month Those 3 things are; Accumulation, Manipulation, and Distribution. AMD: A: Accumulation M: Manipulation D: Distribution 1. Accumulation: They accumulate liquidity through the delivery of a ranging market. The purpose of delivering a ranging market is to induce both buyers and sellers to enter the market thinking that price will go in their direction. How to Identify a Ranging Market: You know price is in a ranging market when you see obvious relative equal highs and lows price range. In a ranging market, price swing points have relatively equal highs and lows, that is, the price is neither delivering a higher high nor a higher low. 2. Manipulation: After accumulating both buy and sell orders, they then manipulate the market to further induce another set of traders which are breakout traders. But, that particular manipulation move is not their intended direction for the day. They only use it to gather liquidity, Which will then lead them to the next action which is to move and distribute prices in their real direction for the day. Usually, when price breaks out of a ranging market, the break-out is a manipulation to further induce a new set of traders to enter the market, further proving liquidity for market makers' real intended direction. 3. Distribution: After manipulating the price to a particular direction different from their plan, they then distribute the price to their original intended direction. e.g to buy, they will first sell the market and then buy at the discount price level. You know a price distribution through clean candles that left imbalances behind and then break market structure away from the previous manipulation move structure high or low to form a new structure. Example of Market Makers Buy and Sell Model as described on the chart. AMD: A: Accumulation M: Manipulation D: Distribution Accumulation: Price range for some time, accumulating liquidity on both sides of long and shorts. Manipulation: Price broke the high of the accumulation to take out Buyside liquidity and then create a new higher high and higher low. But it's a manipulation move. Distribution: Price moves away from the FVG leading to a shift in market structure, plus a short pullback, follow by a massive move to the downside to take out sell-side liquidity below. Entry: Your entry should be inside the FVG created by price before the shift in market structure, you can set a limit order inside the fvg and place your stop loss at the high of the swing high created prior to the fvg and shift in market structure. The same thing applies to a bullish market. Basically, Marker makers push prices higher so they can sell the market at a premium, while they sell the market to lower prices so they can buy that market at very discount prices This strategy can be used in any time frame and all markets including forex, crypto, stocks, future etc. Follow me for more updates. Feel free to ask me any questions in the comment.
Education
by Elijahenoch7
ICT Power of 3 Strategy on GoldPower of 3 at work on Gold producing a 8.6RR move on 30/06/2023 FOREXCOM:XAUUSD AMD: A: Accumulation M: Manipulation D: Distribution Accumulation : Price range during Asian session, accumulating liquidity on both sides of long and shorts. Manipulation : Price broke the low of the accumulation during London session to take out sell side liquidity and then fill the previous day imbalance. Distribution : Price move away from the FVG leading to a shift in market structure on 5m time frame, plus a short pull back, follow by a massive move to the upside during the New York session to take out buy side liquidity above.
FOREXCOM:XAUUSDLong
by Elijahenoch7
Bitcoin to $200K: Liquidity PullbackLet's keep this short and sweet. Liquidity started receding back in March '23. This created a weak consolidation zone waiting for a catalyst to bring it lower. Looks like the Binance lawsuit might be it. If this is so, then we should see a series of bad news one after the next resulting in CRYPTOCAP:BTC falling to the lustrum level. That would be the buying opportunity I've been waiting for. After that, more bad news should be met with resilience in the crypto market. I expect the financial markets to have it's own flush between now and mid-September, at which point we can expect QE. Bitcoin would then be rocketing upwards until January where there will be a another pullback, then more QE, then Bitcoin soars to $200K by next summer. At least, that's what I'm seeing now.
BITSTAMP:BTCUSDLong
by sacredprofit
LTCUSD | Will halving get us through the resistance?Good morning, One month to go until Litecoin Halving. Since the beginning of the year, we have been constantly moving between the daily EMA 200 (white) and the EMA 800 (purple). At the time of this idea, we are back below the EMA 200 and all of our EMAs have flattened out. With such news events, existing resistances and old liquidity zones can usually be worked off well. I am therefore preparing for two scenarios. Scenario 1 (blue) We come in July again significantly above the EMA200 and our short EMAS, 5+13 pull along. In this I would use 50% of the capital that I want to use for this idea. The other 50% when breaking above the EMA800. Scenario 2 (orange) We get a stop hunt of our range. Everything from $71.60 would be a top price and would lead to 50% accumulation. The other 50% would come into play should we get back into the range after such a stop hunt. Price Targets : Around $110 and between $140 and $150.
COINBASE:LTCUSDLong
by Hawkeye-Charting
3