📊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.
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Marketmovers
INPX is our volume mover of the day with a trigger around $2Based on cycle theory and volume bottom bounce we should see a move on this stock at around $2.00 Maybe less. I have my alert set I will let you know when it goes off.
by iCantw84it
01/25/23
AMD: SUPPLY & DEMAND / MARKET MOVER / FORTY-FIVE MADESCRIPTION: In the chart above I have provided a MACRO to SEMI-MICRO analysis of AMD's price action. With a large amount of history backing AMD's price action and overall impact on economic factor I would personally consider AMD to be a MARKET MOVER.
POINTS:
1. MACRO Deviation: 13.75, SEMI-MICRO Deviation: 6.8
2. Current Uptrend Channel
3. WATCH 45 MA SINCE THE START OF BEAR MARKET THIS IS THE SECOND TIME THE 45 MA RISES ABOVE THE 200 MA.
4. WIDER UPTREND CHANNEL has developed.
IMPORTANT: IF PRICE ACTION FALLS BELOW 82.50 FURTHER DOWNWARD MOMENTUM CAN THEN BE ON THE WAY.
SCENARIO BEARISH: Current RSI & MACD levels falls in tandem with overbought territory being shown where current price action stands in NEW CHANNEL. Watch for loss of 82.50 if this is the case it is crucial 68.75 does not break because this can signify an opening for a new downtrend channel.
SCENARIO BULLISH: IF 82.50 is lost watch for strong bounce on 75.63 to PRESERVE BULLISH MOMENTUM OF MA's.
FULL CHART LINK: www.tradingview.com
NASDAQ:AMD
ZAP/ USDT supports and resistanceAN idea about where the emerging supports and resistances appear to be in the recent slow down of the parabolic moves that ZAP has made in the past few weeks.
Pump and Dump? Perfect Example on the Recent Movement on TESLANASDAQ:TSLA Shows a good example of a pump and dump scenario.
- The actual cause of this is still uncertain.
- Probably big withdrawals from significantly huge investors.
- Or the success of the latest model sales.
- NASDAQ:TSLA already achieved the highest price analysts anticipated for 2020, in less than the first 2 months of the year.
- What should we expect with NASDAQ:TSLA ?
Cheers,
G.
Ts: smartalphatrade
NZD/CAD: attention to the interest rateIn 30 minutes we will have the statement of the Interest rate for the New Zealand.
NZD / CAD strong shows indecisiveness on the dynamic resistance, going to create a range market in the area 0.97800 / 0.98500.
The return below the dynamic resistance could be a false signal.
Suggested to wait until the release of this important data before working in the market.
EURUSD outlook for the next week, waiting for NFPThe next targets could be fibo50%, to 1,120, and the next test of the trendline at 1,129, close to the 0.618 fibo important to understand if this bullish sprint really hiding something more than just a swing upward in a movement facing down...
RSI+ MA seems now near a new attempt for a bullish momentum and direction..
The market movers that await euro-dollar in the coming week could therefore play a crucial role, just as has happened with the US GDP previous week..
