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Liquidity

SP500 BULLISHMarket Structure: SP500 is in an uptrend making higher highs and higher lows and approaching a key level (support, uptrend line, swing low) and there is likely an accumulation of sell orders which are made up of breakout traders and stop losses of long positions. This accumulation of orders creates enough liquidity for the market to match orders at this low point before positioning to go higher. Trade: Wait for price to close below the swing low point and enter long on a buy stop @ 4378.60
PEPPERSTONE:US500Long
by Mankz
DXY BearishMarket Structure: DXY is in a downtrend making lower highs and lower lows and approaching a key level (resistance, downtrend line, swing high) and there is likely an accumulation of buy orders which are made up of breakout traders and stop losses of short positions. This accumulation of orders creates enough liquidity for the market to match orders at this high point before positioning to go lower. Trade: Wait for price to close above the swing high point and enter short on a sell stop @ 130.572
TVC:DXYShort
by Mankz
Mastering Liquidity in Trading: Unraveling the Power of SMC 🔥Liquidity is what moves the market. Liquidity and liquidity pools are created and targeted by the markets and a lack of understanding on this topic is the main reason why the trading mind fails even if the analyst mind is correct. Traders who have been victim to their stop losses being taken by a wick before price running in their favour are the perfect example of having the correct analytical mind but a weak trading one. Liquidity is unlike an order block or price inefficiency or anything else that can be physically identified on a chart. It is invisible, however, it is still possible to identify without the need of indicators or anything other than price action alone. Simply put, liquidity is money in the market. Typically, this money comes in the form of retail orders and stop losses. Knowing this allows us to understand that if the market targets liquidity, and liquidity comes in the form of retail stop losses, the market must be hunting and going against retail strategies. 🟢The first and most prominent of these retail strategies is the idea of support and resistance. On the chart we can see an example of what retail traders would refer to as a level of resistance. In doing this they would short price from this level expecting a move down. This creates a liquidity pool just above this ‘resistance level’ where the average retail trader would place their stop losses. This liquidity pool is now a target for the market. So instead of trading this move down, we wait for the liquidity grab and use the rest of this strategy to capitalise on the bearish move that we can expect. On the Chart is a demonstration of the market hunting liquidity before making its next move. Again this is where traders would be correct in terms of bias but incorrect in terms of trading. This is an example of what an informed chart looks like. Instead of highlighting support and resistance levels, we highlight equal lows and equal highs respectively. Equals are usually in the form of otherwise referred to double tops or double bottoms but can also be more than that. The key difference, however, is that we would anticipate the market hunting the liquidity above the equal highs and below the equal lows. Due to this, we avoid being a victim to the market stopping us out by a wick and falling in our direction. The second most prominent retail strategy or idea is the trend-line. Every time a trend-line formation is present within the market, we can now understand the amount of stop losses and, therefore, liquidity that would be sitting under this ‘trend-line’. Above is an example of the importance of recognising trend-line liquidity. Once the liquidity above the equal highs has been hunted, we need to establish the next liquidity pool in the market. Seeing a break above the ‘resistance level’ would be seen as a ‘bullish breakout’ by the average trader. However, we can identify that as a liquidity purge and higher high, in which case we can expect a higher low to be made - which would mean a bearish retracement. On top of this, we can see a build up of trend-line liquidity just above the discount end of the parent price range. This gives us an added confluence and confidence in the fact that we can expect lower prices with the liquidity underneath the trend-line as our first target. Above is an example of liquidity being grabbed on the bullish side (above the equal highs) sending the uninformed trader long based off of a ‘bullish breakout’, then hunting the liquidity on the bearish side (below the trend-line) and sending the uninformed trader short based off of the break of the trend-line. This is typical of the market - it shakes out impatient and uninformed traders on both sides of the market before making the actual move. Here is another examples of how trendline liquidity gets purged by the market. On the chart we can see a trend-line where many traders would be longing the market, unaware that they will be victims of a liquidity purge. Below we can see that liquidity purge below the trend-line which would send the average trader short. Using the rest of the strategy, we are able to understand that price will react from specific levels to go long Below we can see the completion of this market cycle with our levels being respected and the real bullish leg being made. 🔥🟠🔥🔥🟠🔥 BONUS CHEATSHEETS👇👇👇👇
Education
by algoat
2
EURUSD LONG/ BUY🔰 Pair Name : EUR/USD 🔰 Time Frame : 1H/4H 🔰 Scale Type : MID Scale 🔰 Direction : LONG/BUY 📈💼 FUNDAMENTAL POINT OF VIEW: 📉💵 A mixed bag of US jobs data released on Friday 📊🇺🇸 points to limited upside in the US dollar ahead of key US inflation data due on Wednesday. 😐💹 The greenback fell sharply, almost erasing all of the week's gains after a not-so-bearish jobs report. Non-farm payrolls increased less than expected 👎📉, but the unemployment rate fell, and average hourly earnings came in higher than expected 👍📈. The demand for jobs is slowing, but the labor market remains tight for now. ⏳🛠️ The market's response to this mixed data has been similar to recent trends. Below-expected data has had an outsized impact on USD 📉📉, while upbeat data has failed to leave a lasting impression. 🤔💡 Despite the US Economic Surprise Index being at its highest since early 2021, the DXY Index (US dollar index) is around its year-to-date lows. 📊💱 EUR/USD is still within the uptrend change, and the broader bias remains upward due to higher-highs-higher-lows pattern since late 2022. 📈🔄 Lately, the pair has been hovering in an upward-sloping channel since March. However, the consolidation could extend a bit further in the near term. ⏳🔄 📊💹 Technical point of view: 📉💹 EURUSD PRICE HAS REACHED FIB LEVEL 50% 📈📊. We expect the price to retest fib level 23.6% and the consolidation range box below, and then head up again to refill the market imbalance and collect the buying liquidity above. 📈📊💹
Long
by Moon_SmartMoney
GOLD/ XAUUSD🔰 Pair Name: GOLD/XAUUSD 🔰 Time Frame: 1H/4H 🔰 Scale Type: SMALL Scale 🔰 Direction: LONG/BUY Gold has effectively reached the nadir of its preceding downtrend, marking the culmination of the fifth wave. Projected analyses suggest a forthcoming bullish surge, marked by a potential reassessment of the 4-hour supply threshold situated in the approximate range of $1929. It is prudent to exercise circumspection, opting to await the imminent release of CPI data before formulating any prospective market strategies. 📈📉📊🪙 #GoldAnalysis #MarketTrends
TVC:GOLDLong
by Moon_SmartMoney
GOLD/ XAUUSD LONG/ BUY🔰 Pair Name: GOLD/XAUUSD 🔰 Time Frame: 1H/4H 🔰 Scale Type: SMALL Scale 🔰 Direction: LONG/BUY 📈 Analysis Update - Gold Forecast 📉 🔍 Current Status: Gold has successfully reached the critical daily Fibonacci level of 61.8%. From a technical perspective, we are anticipating an imminent retest scenario. 🔮 Projection: The forecast suggests that a retracement is in the cards, with a potential target zone spanning between 1944 and 1951. This retracement is primarily driven by the need to absorb the liquidity that was generated in the market yesterday, thereby realigning the market balance. 📊 Strategy: Traders are advised to closely monitor the price action within the projected range and assess the strength of the retracement. This period could offer an opportunity to capitalize on short-term moves. As always, remember to manage risk effectively and stay attuned to the evolving market dynamics. Happy trading! 📈📊📉
TVC:GOLDLong
by Moon_SmartMoney
DXY SHORT/ SELL🔰 Pair Name : DXY 🔰 Time Frame : 4H 🔰 Scale Type : SMALL/ MID Scale 🔰 Direction : SELL 📉📊 Last Friday, the DXY (US Dollar Index) experienced a sharp decline after the release of the Non-Farm Payrolls (NFP) data. The price had reached the Fibonacci level of 78.6% at 102.722, which led to a significant drop. 💹🔍 Today, on Monday, the DXY seems to be in selling liquidity collection mode. Currently, the price has reached the local Fibonacci level of 61.8%. Traders are anticipating a potential retracement to the Fibonacci level of 50% before a potential upward movement to fill the existing imbalance. ⬆️🔜 After the upward move, there's an expectation that the price might head down again towards the Fibonacci level of 50% at 101.574. Trade with caution and keep an eye on the key Fibonacci levels for potential reversals. 🚦🧐 Happy trading!
TVC:DXYShort
by Moon_SmartMoney
🥇GOLD - The market is preparing for a recoveryGold is forming a false breakdown of a strong support line. The support and liquidity area formed forms a bullish rally. TA on the high timeframe: 1) False breakout. Price closes above the 1938 support line, gold may rise to 1950-1960 at the beginning of the trading week 2) Price is testing the liquidity area of 1942.8, the market may open with a gap or continue its growth if this resistance is broken. TA on the low timeframe: 1) A candle with a large shadow is forming on H4, the price closes close to the 1942 level after a false breakdown 2) The market is forming a potential to continue rising 3) Waiting for the trend resistance to be reached before considering any further setups. Key support📉: 1933 Key resistance📈: 1942
OANDA:XAUUSDLong
by AndeWave
10
Global Liquidity vs BTCUSDIn this idea we'll have a look global liquidity vs BTCUSD on a quarterly timeframe. The main pane contains the bars of a new global liquidity formula discovered by Twitter TechDev_52. On top of the bars is a solid orange line which is BTCUSD both on quarterly timeframe. Also on the main pane is a value grid for global liquidity which is based on time and global liquidity closing values. The secondary panes show the DB ZPS RSI values of global liquidity and BTCUSD. The entire point of this idea is three factors; 1) showcase the beautiful cyclical nature of global liquidity and 2) to show the beautiful cyclical nature of BTCUSD and financially 3) the near 1-to-1 high timeframe cycle pattern matches. It's common theory that as global liquidity increases money flows into highly valuable assets and then trickles into secondary assets in a lagging manner. If this idea is correct, this would showcase the best periods to enter and exit assets from a very high level from an investment point of mind. To the investor these cyclical patterns are a gift that shows periods of wealth growing opportunities in traded assets. Enjoy!
TVC:CN10YLong
by thefluffyones
Things are LOOKING UP for BitcoinI've been looking for Bitcoin to head closer to the seasonal average around which I'd expect either a bullish or bearish liquidity signal from Flow. The signal hasn't appeared yet, but we're getting a nice slow bullish consolidation. Given Bitcoin's short history, it is a challenge to go back through the series to find comparable moments to use as inspiration. However, I believe we might be in a repeat right now of the 2020 Spring/Summer price action. What is appealing to me is how similar both liquidity profiles are. There's a need to adjust a bit because Flow markers can show up late if the moves are quick (as they were in 2020). Even so, it's pretty much dead on... - Same crash due to volatility/uncertainty suddenly skyrocketing - Same fall to the lustrum MA (orange) where the price bottoms - Same seasonal MA (purple) being used by the price to climb. - Same marginally improvement of liquidity conditions a few months later - Same time of year offset by about three months - Same price pattern All suggests that between September and November we could see a massive rally. Would it be a meteoric rise like we saw then? Probably not. But Bitcoin revisiting $48K... that's on the table.
BITSTAMP:BTCUSDLong
by sacredprofit
CADCHF LONG/BUY🔰 Pair Name : CAD/CHF 🔰 Time Frame : 4H/ DAILY 🔰 Scale Type : MID Scale 🔰 Direction : SHORT/SELL 📈From a fundamental perspective, the CAD (Canadian Dollar) and USD (United States Dollar) share a strong correlation due to their economic ties. The majority of Canada's trade is with the US, making it susceptible to economic events and policies in the US, which significantly impact the Canadian economy and the CAD's value. 💼💱 📊 Currently, DXY (US Dollar Index) is experiencing a correction after reaching a critical low on the Daily chart. On the other hand, CADCHF (Canadian Dollar against Swiss Franc) has reached the daily demand zone at the 0.64730 area. Yesterday, a bullish pin bar formed, followed by a green bull candle today, indicating potential upward movement. 📉📈 📉📉 RSI (Relative Strength Index) for CADCHF shows it is oversold, and the month-long price drop has created a significant market imbalance below. We expect CADCHF to move up to collect the market imbalance, targeting at least the Fibonacci level 38.2 around the 0.66145 area. After reaching the daily support at that zone, there may be a retest of the Fibonacci level 23.6% before continuing to rise towards the Fibonacci level 78.6% at the 0.67567 area. 🎯📉📈 💡 Traders should closely monitor these technical indicators and price movements to make informed decisions in their trading activities. Remember to apply risk management strategies and exercise caution when trading the financial markets. ⚠️👀📉📈
Long
by Moon_SmartMoney
4
NZDCHF LONG/ BUY🔰 Pair Name : NZD/CHF 🔰 Time Frame : 4H/ DAILY 🔰 Scale Type : MID Scale 🔰 Direction : LONG/BUY NZD/CHF Forecast: Bullish Momentum Expected as Price Reaches Key Support Zone Hey traders! 📈🚀 NZD/CHF has reached a critical juncture on the charts, arriving at a significant Monthly demand zone around the 0.53 area. This zone not only marks the historical low for the pair but also aligns with the bottom of a well-defined downtrend channel. 📊 Given this confluence of support levels, we are keeping a close eye on the price action, as a potential bullish reversal is in the works. 🧐💹 Our analysis suggests that the price could experience a noteworthy upward movement from this strong support area, with an initial target at the 0.55 area. This level coincides with a key daily supply zone and represents an excellent opportunity for the market to collect liquidity and balance out the demand-supply dynamics. 🎯📉 Traders should remain vigilant and look for bullish confirmation signals in the form of candlestick patterns or trendline breakouts before entering any positions. Remember, successful trading requires proper risk management and adherence to your trading strategy. 🛡️📈 Stay tuned for updates throughout the week as we monitor the price action closely. Let's capitalize on potential market opportunities and make some profitable trades together! Happy trading! 🤝😄
Long
by Moon_SmartMoney
GOLD/ XAUUSD SELL🔰 Pair Name : XAU/USD 🔰 Time Frame : 4H 🔰 Scale Type : MID Scale 🔰 Direction : SELL On the last trading session, gold experienced a significant break of a major uptrend line. As per our analysis, we anticipate that gold will undergo a retest of the aforementioned trend line within the buying liquidity range of $1972-$1973 area. Subsequently, we expect a downward movement towards the last selling liquidity zone around $1946 area, aiming to fill the existing imbalance. Keeping an eye on these price levels presents a potentially lucrative trading opportunity for the start of the week. Don't overlook this straightforward Monday trade as it unfolds before us. Stay vigilant and seize the chance to capitalize on these market dynamics. Happy trading!
CAPITALCOM:GOLDShort
by Moon_SmartMoney
GOLD/ XAUUSD UP DOWN UPPPP DOWNNNNN🔰 Pair Name : XAU/USD 🔰 Time Frame : 4HOUR 🔰 Scale Type : LONG SCALE 🔰 Direction: BUY SELL BUYYYY SELLLLL 📈 Technical Analysis: Gold Eyeing Critical Levels and Potential Downside Targets 📉 🔍 Chart: 4H timeframe 💎 Gold has reached a key Fibonacci level of 61.8% at the $1,912-$1,900 range! 📊 The past two weeks witnessed a bullish surge, propelling gold to retest the 23.6% Fibonacci level and fill the market imbalance created by months of selling. 🚀 🦀 Additionally, the completion of the CD leg of a smaller bearish crab pattern adds more weight to the current scenario. Now, we find ourselves at a pivotal moment, as the bullish price action reached the 50% Fibonacci level, leaving behind a massive imbalance area below! 😲 💪 Gold has just breached the daily demand zone, smashing through the 4H demand zone within it! 🚀 Our analysis suggests that gold might be collecting the last bit of liquidity above, specifically around the key high of $1,969 on both the daily and 4H charts. 🌊 ⚡️ Brace yourself for a potential drop towards the imbalance zone below, followed by a retest of the 4H demand zone. From there, the stage could be set for another retest of the 23.6% Fibonacci zone above! 📈 🔍 Looking ahead, keep an eye on the Fib level 0.786 at the $1,866 area! This zone serves as a juicy target for gold, aligning with the first target of the larger bearish crab pattern, around the $1,860 area. 💰 💥 Fundamental Analysis: Bearish Factors Impacting Gold 💥 📉 Gold prices have been on a relentless decline since July 6, marked by Engulfing Bearish Deliberation candlestick patterns. The invalidated Bull Flag formation on the 4H chart and approaching pressure points at $1,962.80 - $1,966.80 indicate a bearish sentiment. 📉 💰 To anticipate a significant correction, we must closely monitor the US Dollar Index (DX) and its momentum! A positive breakthrough of the medium-term resistance zone, previously support, on the weekly chart could trigger a substantial decline in gold prices that would be difficult to stop. 📉 💡 Conclusion: Get Ready for Exciting Moves in Gold! 💡 ⚠️ Gold is at a critical juncture, presenting both technical and fundamental bearish signals. Stay alert as gold targets the imbalance zone below and potential downside targets at the 0.786 Fibonacci level! 🚀 🔒 Stay tuned and be prepared to take advantage of the next big moves in the gold market! Happy trading! 📈💰
TVC:GOLDShort
by Moon_SmartMoney
What is Polygon 2.0 ?Polygon, the most prominent Ethereum Layer 2 solution and one of the top cryptocurrency projects by market value, is launching its first zkEVM chain, independent of the main Polygon proof of stake chain. Furthermore, it plans to fundamentally change the architecture of the Polygon Network with the launch of Polygon 2.0. What Is Polygon 2.0? Polygon 2.0 is a planned Polygon Network upgrade to establish it as the "Value Layer of the Internet." It will be an elemental protocol that enables users to create, exchange, and program value in the same manner they do with information on the internet but in a decentralized system. By providing features such as digital ownership, decentralized finance, and new coordination mechanisms, Polygon 2.0 will enable anyone to access the global economy. It reimagines the architecture of the Polygon network, its governance, and tokenomics and tries to address the challenges of existing blockchains, more precisely, network throughput and scalability limitations. How Does Polygon 2.0 Work? Polygon 2.0 will take a four-layered structure designed to improve the security and scalability of the network while making transactions atomic and instantaneous. static1.makeuseofimages.com The layers include; Staking Layer : This is the existing layer composed of a "validator manager" contract on the Ethereum blockchain and a "chain manager" for every Polygon chain created. It maintains the validators' registry, processes their requests, and processes slashing events. Interoperability Layer : Built upon the staking layer, the interop layer connects every Polygon chain using bridges. It will also have an aggregator that merges zero-knowledge proofs into one proof sent to the Ethereum blockchain. Execution Layer : This layer will enable the Polygon chains to process blocks similarly to Ethereum blocks. It contains multiple components, including P2P, consensus, mempool databases, and witness generators. Proving Layer : This layer generates proofs for all internal and cross-chain transactions for each polygon chain: It's composed of the "common prover" for proof aggregation and verification, the "state machine" that simulates the execution environment, and a "constructor" for developers. Polygon Labs believes the resulting network of zk-powered Layer 2 chains consolidated through a cross-chain coordination protocol will achieve unified liquidity and unlimited scalability. Consequently, users will engage with the entire network with singularity. What Polygon 2.0 Means for Crypto Users? Polygon 2.0 is in the rollout stage. Collaborations between Polygon Labs, other stakeholders, and the broader Polygon and Ethereum community will determine whether to implement it or not through a formal governance process. But if the current development is to go by, the upgrade is likely to go through. Two major dates are pending for Polygon 2.0: The week of 10th July 2023, when they'll announce a token release, and the following week of 17th July, when governance will follow due process. Polygon 2.0 will introduce two great features to the network: 1-Polygon 2.0 will rely on zk-proofs to store validated transactions on Layer 1 and actual transaction data on Layer 2. This innovation will reduce the cost of transactions and improve users' privacy. 2-The network will support countless chains and allow unlimited cross-chain interactions instantly without compromising security. Hence, users will interact with the entire network without feeling they're leaving a single chain. With such developments paving the way for a better Polygon Network, it will be interesting to watch if more investors will bet on its future. Polygon 2.0 Will Be a Web3 Mainstay The future looks promising for the Polygon Network as it introduces Polygon 2.0, which will establish an essential protocol in the Web3 environment. Over the next few weeks, Polygon Labs will share detailed data on the architecture and workings of the new network and how they intend to transform the project. If interested in reviewing the proposal, you're encouraged to participate in the community's conversations that will shape the network's future. Hope you enjoy this article. Follow for more important contents an analysis. Refrences : www.makeuseof.com polygon.technology
MEducation
by TraderAmin-KZ
6