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Liquiditypool

COPPER time to go long. Bull-steam ahead!After major lows were taken out finding liquidity, it opened up the gates for the bulls to charge ahead. Major bullish engulfing on the daily showcases the immense amount of bullish strength currently for Copper. Expecting Copper to at least re-test the top of the range and even break higher. At these prices Copper seems to be at quite the discount. Definitely not a time to be selling. Look for corrections on smaller time frames to go long. Hope that helps :) Trade with care folks! ~Price Action Nation
OANDA:XCUUSDLong
by PriceActionNation
Liquidity Pool / Stop Loss Explanation POE SignalA group member had a question about why the stop loss was "so low" being 23% under the buy price. The reasoning is you need to avoid the liquidity zone, where price could easily be pushed. The purpose of our stop is to exit the trade if its no longer valid (not get stopped out only to see a pump happen afterwards). This could be another accumulation cycle, so we want to ride out the potential for a dip. As normal traders we normally dont have to deal with extremely large positions. But the whales/institutions who do have to think about liquidity very differently than you or I. Order flow intersections are what they look for. They have to go TO the liquidity - which is many times where people end up placing their stops. They cannot simply accumulate or distribute a large position whenever and wherever they wish. Rather, they must look to those levels where liquidity is aggregating, and stops are helping them in an indirect way. Without a Support/Resistance Finder (SRF) to help you, you can also/alternately use a volume profile as shown. SRF auto plots the S/R lines for the current range (all the horizontal dashed red and green lines are done by SRF). You want to place your stop BELOW where the liquidity is likely located - and also where your trade idea is invalidated. In the opposite sense there is a liquidity zone above as well. Many times you will see price probe the same levels over a few days. This is testing the resistance and seller appetite. You can see this here in the 210+ area as price has been probing the upper resistance.
PEducation
by theheirophant
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