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Liquiditypool

Learn to identify liquidity levels. Before we begin, we need to understand what liquidity is. A market with high liquidity is one where there is a large number of buyers and sellers willing to trade in that particular asset. This means that there is a high availability of buy and sell orders, allowing transactions to be executed quickly and with minimal impact on prices. Where are the most liquid points located on a chart? These points are found at the highs and lows. This is because at these points, many people are waiting for the zone to act as support or resistance, or for the price to break the zone (breakout) to continue its direction. I always use daily, weekly, and monthly timeframes to identify these zones. Why the liquid points are importante on a chart? Liquidity is extremely important because it is the direction in which the price moves. The price will always move towards these points to attract liquidity to the market. Without liquidity, financial markets cannot function. Which indicator can you use to identify liquidity levels? Previous Days Week Highs & Lows by sbtnc Certainly, this indicator will facilitate the process of identifying these points, but it will not identify all of them. -----Remember, like everything in trading, this needs to be combined with other confluences. It won't work by itself.----- Explanation of the example presented in the chart. I had some strong confluences indicating that the price was likely to have a bullish move. As seen in the COT report, there was aggressive selling of JPY. One of the things that helped me take this trade with confidence is that, as you can see in the circle, there was a weekly and monthly high together without being cleared. This created a double top pattern. Since this was such a liquid point, it gave me the confidence that the price would move towards this point before changing direction. And it did exactly that after consolidating for several days. These liquidity points can be used as confluence in our analysis, as well as a potential take profit level.
Education
by Wiiso
3
BNB --> alert for downward movementsBNB --> alert for downward movements hello guys... in my opinion, there are signals for downward movement as well, but from where?! I think after touching the liquidity pool area! there are two targets for short positions that I have shown these! the green area is excellent for a long position, be aware! _______________________________ always do your research. If you have any questions, you can write them in the comments below, and I will answer them. And please don't forget to support this idea with your likes and comment
Short
by melikatrader94
13
LESSON 1: TRADE THE LIQUIDITY OR BE THE LIQUIDITYWhat is Liquidity in Forex Trading? Liquidity is the presence of orders at specific prices in the market, ensuring that transactions can take place without disruptions. When traders talk about liquidity, they are usually referring to the resting orders in the market. These orders can be absorbed or targeted by banks and financial institutions (BFIs) to influence the patterns of price movement. Liquidity can be found throughout the market, although certain areas may have higher levels than others. The good news is that it is indeed possible to learn how to identify and recognize liquidity patterns. Liquidity comprises a variety of orders that gather in the market, including limit orders, stop loss orders, and stop limit orders. These orders come into play when prices reach specific levels of supply or demand in the market. Understanding liquidity is essential in comprehending how prices move. Why do you need to understand Liquidity? Liquidity is crucial for predicting price movements. Analyzing liquidity, along with market structure, supply and demand, and order flow, provides insights into potential price directions. It's important to consider liquidity alongside trend analysis and supply and demand to understand market conditions effectively. Highly liquid markets can be manipulated by large banks or institutions, leading to liquidity shortages, price slippage, and poor trade execution. Recognizing liquidity pools during slow sideways price movements is key. What are the main types of Liquidity in Forex trading? 1. Buy-side liquidity (see chart for example) Buy-side liquidity refers to the accumulation of orders above a range or high, including buy-stop limits and stop losses placed by sellers and breakout traders. Banks and financial institutions (BFIs) may target these orders to fuel temporary or sustained bullish price movements. 2. Sell-side liquidity (see chart for example) Sell-side liquidity refers to the collection of orders situated below a range or low, including sell-stop limits and stop losses placed by buyers and breakout traders. Banks and financial institutions (BFIs) can target these orders to generate temporary or sustained bearish price movements. Similar to buy-side liquidity, sell-side liquidity serves a crucial role in the market dynamics. Do you have any questions? feel free to ask. Cheers, David
Education
by jabariofafrica
10
AUDUSD Sell PotentialHere is the framework for these two sell setups: Weekly: -we remain bearish, albeit the ranging markets and consolidating behavior -the pair has been trapped between 0.68000 and 0.66000 key institutional levels for the last 10 weeks! -this implies that most of the price action within these two levels has been in a bid to collect orders and liquidity for when the pair finally breaks out of the consolidation parameters- whether to the upside or the downside. Daily: -I have noted a head and shoulder pattern on the daily amidst the choppy price action. -this pattern is bound to play out in the course of the next few weeks. I simply remain aware of it without using it as a confluence or core reason for my current bias. H4: -we swung strongly to the downside from 0.68183, precisely, all the way to the most current market lows at 0.66286. -we have since then retraced to the 38.2% fib level and, -according to my assessment, are bound to create a double top at this level Midrange: M15 TO H1 -we are bearish. -we have, however, also been in range within this time frame -we harvested the Tuesday and Monday low respectively in the course of the Asian session on 17.05 -we also tapped into the weekly low set last week at 0.66362 and had a clean rejection to the upside after tapping this liquidity -current price action indicates that we have the Monday and Tuesday highs sitting amply at 0.67087 and 0.6798 respectively. -the two highs portend a source of liquidity for the pair Fundamentals": -the Australia employment figures come in at 4.30am (UTC+3) -IF price ends up pushing north to harvest the aforementioned highs, I will be inclined to sell the pair with the following confluences: 1. we have an institutional level, 0.67000 where institutions are bound to place sell orders on the pair from 2. the Monday and Tuesday highs will have been neutralized to provide the needed fuel to drive price south 3. H4 will have formed a Moolah/double-top around the 38.2% fib level on its swing. This will allow the pair a double rejection incentive to sell off the aforementioned highs 4. the weekly low at 0.66060 remains my area of target for the pair as we seek to collect liquidity off the lows Based on these confluences and the market environment, I am comfortable selling the pair with the right price rejection around 0.67150 on two fronts: a) sell on the intraday and aim for 0.66400, the most recent visible demand level where price might be limited in breaking b) due to a continuation on H4, I intend to sell all the way to 0.66000, owing to the -27% extension that sits at 0.65876 as well as the aforementioned weekly low acting as incentive for sells at 0.66060. NOTE: all this is just my opinion and not financial advice. Analyze the market yourself and place trades based on your own biases and conclusions.
Short
by lovinmulika
USD MASSIVE RALLY UPCOMINGThe FX:USDOLLAR has entered a strong daily demand zone and as you can see as marked on my chart, I have marked a buy-side liquidity pool which the market is meant to sweep. Also, there is a weekly fair value gap (FVG) or liquidity void which just sits above the daily buy-side liquidity pool. This should attract price to reach for these key opportunities. This is why I am expecting the dollar(USD) to print strong bullish candles. What do you guys think, is it going to dip just below the daily demand zone or it will respect the zone and rally? I would be dropping USD pairs that I am monitoring... SO STAY TUNED!!! You can also check out my other trade ideas below. NZDCAD AUDJPY CADJPY Cheers, David
FX:USDOLLARLong
by jabariofafrica
2
AUDJPY.... 4RR BULLISH TRADEHey guys, It's been a long time since I made a post but guess what, I am back and ready to give you guys the best trade ideas ever. On analyzing the JPY pairs, I also make use of the JPY index so as to select the best pair to trade, and as you may find out if you check, FX:AUDJPY has entered a strong daily demand level and is currently setting up buy-side liquidity which you can see on my chart. I expect it to use the buy-side liquidity to retrace to my entry after which, the bullish move should happen. I will also be posting my analysis on CADJPY... SO WATCHOUT. Let me know if you are also interested in this pair. Cheers, David
Long
by jabariofafrica
AUDUSD Sell SetupHere are the key things to note about this trade: Weekly: -we are bearish on the weekly. -we actually picked up momentum toward the end of the month and printed a strong bearish momentum candle after 6-7 straight weeks of wicks to the upside on the weekly chart. -this momentum candle is an indicator of orders getting filled and potential for more price action to push south. H4: -we broke structure to the downside on H4- but slightly. There is a shred of hesitation to heading farther down but the pair left us on a cliffhanger at the close of the April month. NOTES: -of great interest to me are two key lows: the April low which was printed on Friday (0.66736) and the March low (0.65643)- both of which remained untapped as we closed the month of April. This trade is based on the premise that: -we broke structure on the midrange (H1, if you will) to the downside, establishing a bearish picture at the week's open. -we retraced to the 61.8% fib level and minor supply level that can be seen clearly on M15. -Friday closed with a level of rejection at this minor supply -the monthly lows at the aforementioned levels offer plenty of incentive for the pair to push into them That being said, this is a 50-pip potential trade. Entry shall be based on rejection at the close of the first hour after the Asian session commencement. target: 0.65600, right below the March low. Entry TF: M15.
by lovinmulika
2
apple will go to upper than $180aapl will go to upper than $ 180 hello guys... apple had made a head and shoulder pattern the target of this pattern in this situation is $ 180 in my opinion the purpose of this move in gathering a lot of liquidity the range of this liquidity located in $ 175- $ 185 _______________________________ always do your research. If you have any questions, you can write them in the comments below, and I will answer them. And please don't forget to support this idea with your likes and comment
NASDAQ:AAPLLong
by melikatrader94
19
📊Liquidity GrabSmall and big players tend to acquire larger positions in the market than they can afford, in an attempt to benefit from the leverage. This is where the concept of liquidity grab comes into play. Large trades and institutional investors need to locate liquidity areas in the market to complete their trades. Stops and stop-loss orders are critical for survival in a leveraged market. Stop hunting is a common practice in Forex trading, where traders are forced to leave their positions by triggering their stop-loss orders. This can create unique opportunities for some investors, which is called a liquidity grab. Stop hunting is a trading action where the price and volume action threatens to trigger stops on either side of support and resistance. When a large number of stops are triggered, the price experiences higher volatility on more orders hitting the market. Such volatility in price generates opportunities for participants to enter a trade in a favourable environment or protect their position. The fact that too many stop losses triggered at once result in sharp moves in the price action is the reason behind the practice of liquidity grab. 📍 What is liquidity sweep? In trading, a liquidity sweep is the process of filling an order by taking advantage of all available liquidity at multiple price levels. Traders use this method to ensure their orders are filled at the best possible price by breaking up their order into smaller sub-orders and spreading them across multiple price levels. Institutional traders and high-frequency trading firms commonly use liquidity sweeps for efficient and quick execution of large trade volumes. 📍 Liquidity Zones Big players in trading aim for the best prices but face challenges finding sufficient counter-forces to fill their large orders. Entering the market at low liquidity areas creates more volatile markets, negatively impacting the average price. Conversely, entering at high liquidity areas results in less volatile markets, ensuring a better average price for the position. These liquidity zones are where stop-loss orders are placed, and the concept of "liquidity grab" comes from the need for big players to enter the market in these zones to take large positions. Traders use swing lows and swing highs to create these liquidity zones and place stops as reference points, resulting in either a reversal to the mean or a breakout of the level. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
21
BTC/USD 28383.00 BUY IDEA ICT SMC BASED TRADE 1:10 RRHELLO EVERYONE HOPE EVERYONE IS DOING GOOD HAVING A GREAT WEEKEND. HERE'S A LOOK AT POSSIBLE SCENARIOS THAT COULD PLAY OUT TODAY AND TOMORROW ON BITCOIN. BTC/USD BUILD LQ DURING ASIAN SESSION SAW A SWEEP OF THAT LIQUIDITY LOOKING FOR A SWEEP OF THE BUY SIDE LIQUIDITY. * Yesterdays highs TAKEN looking to target buy side liquidity on the on BITCOIN. * Should this happen looking for entries LONG with the ICT 2022 entry model. * Targeting the Asian BUY SIDE LQ. -This would be an ICT JUDAS SWING SET UP * Overall target will be the SWEEP OF THE HIGH. * + RSI DIVEGENCE CONFLUENCE lets see how it goes. IF THIS IDEA ASSISTS IN ANY OR IF YOU LIKE THIS ONE SMASH THAT LIKE BUTTON & LEAVE A COMMENT. ALWAYS APPRECIATED ____________________________________________________________________________________________________________________ * Kindly follow your entry rules on entries & stops. |* Some of The idea's may be predictive yet are not financial advice or signals. | *Trading plans can change at anytime reactive to the market. | * Many stars must align with the plan before executing the trade, kindly follow your rules & RISK MANAGEMENT. _____________________________________________________________________________________________________________________ | * ENTRY & SL -KINDLY FOLLOW YOUR RULES | * RISK-MANAGEMENT | *PERIOD - INTRA DAY SESSIONS TRADE
BITSTAMP:BTCUSDLong
by PULEMokhothu
5
ETHUSDT Trading Plan---X--- : Potential reversal square : demand and supply The analysis is based on ORDERFLOW. The trend structure in H4 is bull , so we are going to entry long positions before becoming bear . We could identify some demand and supply zones by orderblock regarded as a large-scale buy or sell zone . It was mentioned above , the trend is a going up , therefore we will hardly entry short positions , ALWAYS FOLLOW THE TREND . There are 2 opportunities to trade Long : 1675.74 SL : 1653.23 TP : 1886.46 RR=9.36 Long : 1632.18 SL : 1610.31 TP : 1886.46 RR=11.63 if price goes to the yellow line before reach our limit orders, the trades should be cancelled .
Long
by khlin712
My today's view on SP500 - FutureHi Traders, This is my view for today on ES Micro and Macro structure are both aligned. There’re few zone I’ll wait for the price to test: - 4025 for a short - 4080/90 for a short, as well - 3960 for a long (but I need a strong confirmation) Pit, Trading Kitchen DISCLAIMER: Trading activity is very dangerous. All the contents, suggestions, strategies, videos, images, trade setups and forecast, everything you see on this website and are the result of my personal evaluations and was created for educational purposes only and not as an incentive to invest. Do not consider them as financial advice.
CME_MINI:ES1!Short
by kitchen_trading
1