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Liquiditypool

Buyers need this liquidity. Multi-TF confluence short tradeEUR/CHF – 9.27 We are at the top of our HTF Supply zone where we are just breaking through the strong resistance at the top of a HTF symmetrical triangle. I’m not convinced of this breakout and am expecting this to be a liquidity pull above former structure. I see an opportunity here to short the liquidity grab and ride price back down into the triangle and toward required liquidity. Why I think it’s going down short term: 1. We just created a major CHoCH on the daily and have yet to mitigate the major demand and liquidity zone that it created below 2. That same demand zone is sitting at a HTF support level so it is the ultimate liquidity source for bulls 3. We also just broke out of and retested a MTF ascending wedge which typically indicates a reversal in trend 4. Rejected at major resistance above - lacking liquidity to push higher Good R:R trade opportunity considering we are at the top of potential reversal – LTF just made a CHoCH and we are awaiting a LTF Supply zone mitigation to enter our trade. There is also a bigger R:R opportunity for our TP2 which is the bottom of the triangle and another strong HTF support level. For this trade , we are awaiting a post-CHoCH reversal confirmation with a supply zone mitigation and LTF (5/1min) BOS Stop loss is above our MTF (2HR) supply zone TP1 at retest of upper triangle & HTF support level = 2.2 R:R TP2 at retest of lower triangle support = 4.9 R:R
Short
by ReigningTrades
6
#USDCAD another selling opportunityIf you remember we already took one successful short trade from the previous red arrow and although we were expecting price to move further down and create new low for higher timeframe this didn't happen. As a result price went up and giving us another selling opportunity. As you can see in the picture price is at important static resistance area and just below 4H and 1H EMA which both acting as resistance. But the thing that we should be consider before taking position from the area that price currently is sitting on is the possibility that if price wants to come and take liquidity from the local top that formed earlier and since there is a lot of stop losses could be a good target for price to reach and take out liquidity. So if you want to take position from this area keep in mind the possibility of price moving higher to take out loquidity.
Short
by mohemati
How to trade Liquidity Sweeps 🌊 Trading liquidity sweeps 🌊 and identifying fake liquidity grabs 🕵️‍♂️ can be valuable skills for traders. These strategies involve capitalizing on market inefficiencies and understanding how institutional traders and algorithms influence price movements. In this guide, we'll explore what liquidity sweeps and fake liquidity grabs are and how to trade them effectively. Understanding Liquidity Sweeps: A liquidity sweep occurs when a trader executes a large market order that "sweeps" through the order book, clearing out available liquidity at various price levels. These sweeps often signal strong buying or selling interest, potentially leading to significant price moves. Identifying Fake Liquidity Grabs: Fake liquidity grabs 🎭 are market manipulation techniques used to deceive traders. Market makers or large players might place large orders on the order book to give the illusion of significant interest at a specific price level. However, they often cancel these orders before they get executed, leading to sudden reversals in price. Trading Liquidity Sweeps: Monitor Order Flow: Keep an eye on order flow and trade volume to identify sudden surges in trading activity. Liquidity sweeps are often accompanied by spikes in volume. Identify Key Levels: Look for important support or resistance levels where liquidity sweeps are likely to occur. These levels can be based on technical analysis, such as previous highs or lows. Entry and Stop-loss: Enter a trade when you spot a liquidity sweep that confirms your bias. Set stop-loss orders to manage risk in case the market moves against you. Take Profits: Take profits when the market reacts as expected, but be prepared for quick price reversals. Liquidity sweeps can be followed by retracements. Trading Fake Liquidity Grabs: Be Cautious: Approach price moves driven by apparent liquidity grabs with caution. These moves can be short-lived. Confirm Price Action: Wait for confirmation of the direction after the fake liquidity grab. Look for signs that real market sentiment is driving the price. Risk Management: Place stop-loss orders to protect your capital in case the market reverses quickly. Avoid chasing the initial price move. Use Additional Indicators: Combine your analysis with other technical indicators or market sentiment tools to increase your confidence in your trading decisions. Conclusion: Trading liquidity sweeps and fake liquidity grabs can offer opportunities for profit, but they also come with risks. It's essential to have a clear strategy, strict risk management rules, and the ability to adapt to rapidly changing market conditions. As with any trading strategy, practice and experience will help refine your skills in identifying and capitalizing on these market dynamics. 🚀📈🌊
INDEX:BTCUSDEducation
by AlexWhale
IPDA Ranges to Cast Future Price Movement for ES Familiarizing ourselves more on IPDA Ranges to help form daily bias and to work on high time frame analysis. The first idea we ever published was actually a very similar thought but now that we have a better understanding of how to use IPDA ranges we wanted to post what we hope to be a more accurate version of what is to occur in CME_MINI:ES1! price action. We are trading down off of a weekly order block that was traded into on July 18th; we have taken out the July 10th low of 4660.25 and we have failed to make a higher swing above 4683.50. It seems like the market has shifted to bearish conditions for the intermediate term. Using the look back and cast forward train of thinking, we have been trading higher for the 60 trading days prior to August 1st which is just 3 trading days after making our current intermediate high; meaning our cast forward should have plenty of sell side liquidity to draw to in order to clear out stops below our 20-40-60 day ranges. It just so happens that we have a +Breaker Block that contains a Fair Value Gap/Liquidity Void inside of it. This gives us a lot of confidence in our bearish outlook as the 60 day low is quite literally is the top of our Liquidity Void and also falls into a zone for Optimal Trade Entry (OTE). The only major bounce we should see is off of the March 13th Premium/Discount range as the Equilibrium for that range falls right in a Liquidity Void. The only thing that will push us through that with ease is some red folder news. Should be a piece of cake.. We are proud to put ourselves out there with ideas. It forces us to use logic and apply concepts and ideals that we have learned. Any questions or comments leave them below! CME_MINI:ES1! EIGHTCAP:SPX500 CBOE:SPX TVC:SPX BLACKBULL:SPX500 SKILLING:SPX500
CME_MINI:ES1!Short
by blackoakcapital
US30 - NFP day - Welcome to September Hola ! Happy Friday traders - Mid Cycle of the 3rd quarter for 2023 As mentioned in my previous post, US30 gave us bullish momentum throughout the week and during NY session we seen the bears take over completely. Am i the only one seeing all the sellside liquidity getting built ? Im in two minds with it being NFP today - shit is going to be wild. Thinking the 35007 area is hotzone(Jul to Aug Flipzone to create bearish momentum). If we get a clear MSB and retest i will go long. If the bearish flipzones are respected. We may attack last months lows before the bull rush takes over. I tend to stay away from major news events like this. Market can be really volatile and sweep both sides before moving in the intended direction Best of Luck - Follow your rules !
CAPITALCOM:US30
by KingDee57
2
Liquidity: Boosting Bitcoin's Growth Potential 📊💥🚀 Let's delve into the world of liquidity and its impact on Bitcoin's price movement. We'll explore how a significant surge in liquidity from the bottom of the chart can potentially trigger a bullish momentum. Let's get started! 🕳️ Liquidity Pools: Imagine liquidity as the fuel that drives price action. Liquidity pools are areas where traders place their buy and sell orders. These zones are vital because they influence market dynamics. 💥 Liquidity Pool Breakouts: When Bitcoin's price approaches a liquidity pool at the bottom of the chart, it gathers momentum like a spring about to bounce. A breakout from this pool can initiate a chain reaction of buying, pushing the price upward. 📊 Market Impact: Liquidity pool breakouts attract traders and algorithms seeking opportunities. The influx of trading activity can lead to rapid price movements, creating potential profit opportunities. 💡 Spotting Opportunities: The excitement around liquidity pool breakouts stems from the potential for significant price surges. Observant traders who identify these setups might position themselves to capitalize on the momentum. 🚀 Navigating Growth: Recognizing liquidity zones and their potential breakouts can give you a strategic advantage. As liquidity moves across different zones, you can ride the wave of potential growth. So, what's the key takeaway here? 📊 Understanding liquidity zones can provide insights into possible price movements. Keep an eye on breakout moments, as they can present opportunities to ride the upward trend. Stay curious, stay attentive, and remember – just as liquidity flows impact Bitcoin's journey, staying informed can guide your investment decisions in the crypto world! 🚀💰 ❗See related ideas below❗ Follow + Like this post and leave a nice comment, it will allow me to move faster and make more useful content! 💚💚💚
INDEX:BTCUSDLong
by Yaroslav_Krasko
4
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
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