All language subtitles for 1. Biscoitin bom

plenty notes as always try and
draw these diagrams yourself

this over as many times as you
need to make sure you take

just look at as many trade
examples as possible so watch

it could mess around and go off
so what we can do in that

go and just do yeah real nice
slow walk through on the charts

maybe you want to pay yourself
right so you can take some

high but not every time we we
we get into the trade is it

and it will really help to kind
of fill in any gaps in your

leave that there in the next
few lessons we're now going to

together paint everything we've
kind of learnt together now

when in the latest lessons we
start to think about management

of how you can use this concept
you know if you're in a trade

Mone would sweep that it would
pull back and obviously then

taps into you know the the
liquidity that was behind the

when it sweeps it it's likely
to have a steep pullback and

whoops we do want to target
right we're long down here

ideally right this 4 hour week
swing high to get that higher

structure you see a prior high
that's when price will break it

I guess I want to add is just
remember whenever we get a

in your trading right so yeah
you know if you're not

simple as I personally believe
you should try and and keep it

knowing what direction you
want to be trading in then

were from demand or induced
buyers if we're going to sell

hopefully continue so yeah just
kind of bear that in mind now

high and that's when we get the
pull back right same thing

liquidity just in front of it
to induce right sellers if you

identifying your supply and
demand zones either via a break

creating equal lows here these
equal lows still haven't been

more important is everything
came before the the liquidity

yeah hope you guys took some
value from that and I will see

knowledge that maybe there that
you weren't quite aware of so

and just start to kind of put
these pieces of the puzzle

with just that final little
tweak with liquidity yeah and

you know bigger double bottom
right it'll be more of that

swept but then it's also just
creating that larger kind of

then does come down sweeps all
of this liquidity taps into

of it okay so even in this case
what you'll often see is you

all day you'll you'll never end
right because it's it's

concepts into our trading in as
many ways as possible so I'll

another demand zone and then we
get the real move okay so yeah

know use that to your knowledge
that when price pulls past that

know there will be minor demand
here right because you know

liquidity is all over your
chart you you you'll be drawing

high and this would become our
next high low so yeah hopefully

new swing low at that point
right and then we'd have our

meantime let's say we're
running you know really decent

profits and we see some nice
equal highs over here right

which is kind of poorly draw a
dollar sign there you may you

going to do that straight away
right it could come down lower

reject any demand zones from
along here but obviously in

what I mean you know when
you're looking at internal

yes we do want to target that
you know if we've got long here

sweep of liquidity generally we
will get a pull back so that's

know I've ranted about this
enough before but just to

orders are building within here
some of price comes down into

action here where we we got our
entry model and we see these

series of mitigations with all
of these lower time frame

demand zones what is that doing
well you know what would that

it you know we we could have
formed a high low here but more

that demand is then filled and
then what's that doing it's

this is where some demand
stepped in pivot demand to lead

so one right we see liquid
liquidity get taken as it

keep your charts as kind of
clear as possible just so you

when you're practicing and
you're just trying to get a

near our zone right in front of
the zone really that's kind of

what we're most interested in
you don't need to kind of go

looking for you know is there
some inducement you know quite

identifying if a zone is a
sweep zone or not and two just

everywhere it can also be quite
subjective in terms of if you

use this liquidity concepts
within our trading because like

try and be you know using it in
in in very kind of refined

just now and just focus on
those two concepts because you

two types of zones even more by
just seeing if they took

into them from supply right and
that's essentially it you know

these lower highs there's just
going to be tons of orders all

yeah on the way down so
remember all of this price

below these zones here taps
into our you know origin of

be the origin of the move that
actually led to that break of

time right anyone is trading
this range a lot of people

full of orders some people
refer to this as a liquidity

ascending trend line but what
that is kind of in reality is

is going to move back up so
this movement here is

liquidity right as people
starting to sell behind all of

section where there isn't price
hasn't moved into yet it's just

again we get the same entry
model right failed reaction so

modules right getting your
market structure right first

thing happening right and we
pull back potentially we have

flip chalk pull back in and
then we can start to target

knowing where your true swing
highs and swing lows are

it's just happening fractically
all over the market but what's

can really be focusing on the
price action that is occurring

actually trading the live
markets you do want to try and

of the zone even more two we
then have inducement in front

that had built up right and now
price comes up and it taps into

all of that supply obviously
demand is still powerful at

building up above this four
hour spring range the entire

which is then again access
inducement yeah for the same

again it causes the reaction to
fail and then eventually we get

these moves here all of this
pull back it's going to

you know it's good to do that
but in reality when you're

move and in the theory we can
then try and get another high

new swing high and then
obviously price could you know

this trend line holding right
people look to get long here on

potentially there may be a very
minor pullback on the way up

going to then use that
liquidity again to trade

structure so this would
actually become you know our

our extreme demand zone right
because essentially this would

liquidity behind this high we
pull back that then leaves a

partial profits off the table
pay yourself just in case price

within kind of this whole range
right or you know the opposite

I'm going to want to get short
and they will sell they will

tons of liquidity building up
beneath those demand zones

wider stops it's not just
going to be you know one

then facilitate that pull back
right using prior liquidity

about the reasons why you know
how how we can use those

double top then build equal
highs there right price on the

but I just kind of want you to
start you you know thinking

again we can talk about
management in a lot more later

now is starting to take control
as we start to break these

money that's stepping in here
in the strong demand zone

trading so yeah that's pretty
much it the only other thing I

an equivalent sell order so you
know the theory is the big

should then introduce sellers
into the market for this large

really do not need liquidity
it's just kind of just yeah you

kind of give you that little
extra fine tuning to your

lows and they're going to think
okay if those strong lows go

know advise you kind of don't
worry too much about liquidity

consistent or comfortable with
just market structure and

kind of as simple as I can try
to explain it and kind of as

going to be full of orders all
of this white space is just

trend line liquidity sweeps
that minor low there and then

induce sellers into the market
right so anyone who's kind of

on this I imagine oops move
this off out the way get nice

supply and demand on its own I
definitely would kind of you

so this is where that strong
swing low should be holding

pull back so again when we come
down and we sweep this minor

zone a structural zone and a
flip zone this is a kind of our

would have been created from a
minor leg alright or it may

break of structure and the
failed reaction so it's a sweep

the third bounce but it just
breaks down through sweeps that

generally when you are looking
at you know this M15 price

we can just increase the
probability of either of those

of structure or via a flip zone
or ideally both right and then

liquidity when they were
created and or if they have

just kind of just so you
understand what's going on so

to that break of structure so
then when price comes back to

equity sweep for price to pull
back or of course potentially

internal range and external
range equity it doesn't really

scenarios and those two
scenarios are one for

low it facilitates the pull
back to kick in and it gets the

exact same thing so as we come
down into this four hour sweep

often than not you'll just see
a bit of a small reaction as

and then eventually that goes
right and then we're off so

feel for for at how price
sweeps it and then it reverses

kind of classic horizontal
support level that's holding

everywhere right it's behind
every single structure point in

around and draw an order this
trend line equity of course

have you know a more accurate
one would be would be a bit of

the market but more what we try
and kind of use this for is we

overwhelming imbalance between
supply and demand where demand

the pullback okay so you'll
either get the demand zone in

inducement in it so then as
price comes down it sweeps that

creates a zone that then you
know increases the probability

fact let me just draw it on so
you can see exactly what I'm

that's starting to make a
little bit more sense of how we

minor breaks and structures to
the upside we tap into demand

I said at the start right
liquidity is literally

demand to then buy against
those sell orders buy into

start kind of using these lines
right to draw where you think

there's loads of sell orders in
that area which in theory

know within the swing high and
the swing low is essential

deadline below it there's just
going to be a ton of orders all

liquidity that was built on the
way up okay so all of this is

theory that big money to then
sell into and continue that

this we've just drawn it with
price coming all the way down

to the extreme it sweeps all of
the liquidity that had built

right this is you know as good
as it gets essentially in

zone right remember it took
liquidity and then led to the

look like if we just looked at
candles like a bit of an

right as people are getting
long and what not right tons of

facilitate the pullback right
so literally the minute that

looking to break out on this
level so there's tons of

things if not both it will
either be reacting to a prior

hour swing high so eventually
when price breaks that high we

liquidity up here price will
then eventually sweep that and

still have you know stop losses
above the highs or people

sweep that external range
liquidity right that have been

this point overpowering it and
then we eventually get up we

void right and eventually
what's going to happen is price

essentially then filling all of
the orders within the space

liquidity when it was created
and broke demand and structure

price then sweeps a high moving
into that supply zone that for

price then sweeps that high and
then we get that failed

talking about so we'd rather
have say an M-15 demand zone

for example right and also
imagine that that demand zone

a 15 -minute low right just
like this low here it will most

minor pullback building
liquidity above that high as

back for a lower high generally
be doing one or one of two

reverse so yeah it's kind of
just the difference between

building up in this area right
this whole empty bit of price

the change of character
creating our flip zone

generally be creating you know
some sort of trend line

that weak 4 hour high right and
that whole time right all of

tapping into the external
arrange liquidity that has been

building up the entire time
price has been pulling back

eventually that facilitates
that pullback so later on you

jailbreaks it fails to take out
the low demand then steps in

we pull back that demand sorry
that the supply fails to do its

put their sell stop order on
the break of it right so

against but eventually you know
there's going to be that

those sell orders right for
every buy order there must be

takes that high so we get that
change of character right that

below these lows right
obviously some people can have

of that there are going to be
people who see those strong

don't know when it could
literally be a pip and you will

the double bottom right likely
to have their stop anywhere

and small there we go so anyone
who's say essentially long from

equality being tapped into
that's built up here that

more of a minor minor pullback
there and then again another

essentially you know external
range so internal range is

see this you know even a micro
pip it breaks and then it can

are looking to potentially get
long or for traders who are

happening of course is if price
then sweeps that liquidity

behind the high and the low so
after we get you know that

break of structure generally
that will be a sweep of

it builds up that by side
liquidity for you know in

trying to catch that high low
and that protrend move we then

getting long from this double
bottom already right if we draw

highest property zone and it's
at the origin of the swing move

low there it taps into demand
and that will facilitate the

likely be sweeping that low and
then that will also facilitate

right there's going to be loads
of liquidity building all up

pullback or it will be imagine
there was a minor low there or

know when we get that break of
structure over here right again

start of the diagram what do we
have we have this thick grey

continuing that bearish
internal trend and then price

going to be tons of liquidity
sitting externally and then

the charts in the next lesson
or two so starting off at the

demand zone right in this leg
here to facilitate that

action every time we get kind
of get that reaction to pull

entire time and then that
starts to you know provide that

make a massive difference in
term of how you define it it's

of liquidity behind that high
and even on the pullback as

look to play that four hour
pullback what do we have we

there then we jump down to the
M15 right and we can start to

that is broken that is
essentially that external range

above the top of this range
right at top of top of the four

liquidity and eventually we'll
get a pull back so in this case

in this diagram it's obviously
a very exaggerated movement

after we get that break of
structure obviously there's

everything between the high and
the low external is obviously

classified as internal range
liquidity and then any

pull back down here now as
we're pulling back what can end

up happening is we can start to
sweep all of that prior

you can potentially make right
okay pretty much wraps up the

potentially blind your retinas
with my white charts alright so

second warning to reduce your
screen brightness if you are

something to bear in mind as
you start to progress and

will create us a pretty decent
sweep zone of course when price

then goes on to break structure
so we build some more equal

reasonably strong internal low
and then what can end up

liquidity behind those swing
highs and swing lows is

decent amount of liquidity
below this low right for who

internal range liquidity any
sort of liquidity that is you

minor well not minor but with
that minor high we have a build

structure to the downside and
yeah and then again build some

our supply zone right to then
facilitate that next pull back

lows here before price actually
goes to break structure bit

looking to sell the breakout of
that what should be you know a

to the downside there's then
inducement in the leg right so

well and all of this acts as
inducement for what inducement

for the supply zone which is a
sweep zone because it took

reaction and that change of
character that break a

the exact same thing right we
get an internal lower high

internal structure right so
imagine and then price back it

creating a higher high so that
means that there will be a

this example price turns back
pulls back right with this

for a zone you know below or
above it now this concept for

price delivery you know back to
the zone it's not super super

where that zone was created
that ends up being inducement

forms an internal lower high it
then takes that low right

facilitate a pullback right of
course we could drop you know

zones when we are in a British
trend generally they will

produce and facilitate that
pullback now in this case in

previous supply zone what do we
know about previous supply

go on to reverse but generally
old zones are there to then

we should be you know pretty
familiar with this diagram by

pretty much every single listen
so far so yes this is your five

theory so what we're going to
do is we're going to hop on the

you're just looking for those
you know extra refinements that

that you're looking at.
However, in that final third

and eventually break down and
sweep past it where essentially

right and then that fuels the
move to the upside then that

have that pullback into demand
price then pulls back up again

correctively then you can see
in kind of both of those first

broken generally you will see
some form of reaction whether

line as the four hour chart
price moves up it pulls into a

it's a full reversal or you
know just a pullback. Now one

clear cut trading example
before we're going to hop on

concepts that we have just gone
over alright in this theory

liquidity behind every single
structural swing point in the

now and all we are simply doing
is just applying the liquidity

and a lot of the price will
then just disrespect the zone

straight back to the zone, not
always, but a lot of the time,

mitigated. So these are the
types of pullbacks that you

for price to sweep into the
zone but then also for to

two examples how liquidity is
being built up as inducement

break of structure we expect to
pull back why well because

lower high so that's why we
always say what happens after a

sweep that and it will start to
pull back to then form the next

first initial minor breaker
structure to the upside

lesson and we're kind of just
looking at a bit more of a

liquidity sitting below the
price swing low price will then

kind of other thing to consider
when looking at trading from a

infamous price action example
that we've been building on

sitting in a dark room because
we are of course about to

market and that's why every
time any piece of structure is

charts just to look at kind of
you know one last thing our

personally wouldn't massively
worry about this too much at

all especially when you're
first starting out but it is

can you know potentially help
to boost your strike rate so I

important but it's just an
extra piece of confidence which

price is swept liquidity from
the prior swing structure so

created, if price then has a
sharp, almost vertical retrace

example, if you see a V-shaped
return, where after a large

generally want to see when
price is returning to the zone

target for price to then go on
to take after the zone has been

this is not a good sign,
because there is no inducement,

pulling back to the zone. So
always ask yourself how is

price being delivered. If price
is pulling back slowly and

impulse in price, you know,
where that sort of zone was

particular zone is the nature
of price action as it is

trade that countertrend pull
back okay so there is literally

now we want to trade away from
that and that's why we can then

that so we want to trade the
following bearish move so then

1 mapping for true breaks of
structure I want to see the

candle closure because that
means now that you can

back below inside that bearish
swing range so this means that

it was just a wick break and
that's why I prefer to use type

started that new bearish trend
price pulled back up towards

price could sweep it before the
real bearish move started but

the downside to form that swing
lower low there will of course

always but a lot of times it
can be now remember we always

set up for price to now
commence that next bearish leg

desired direction so what does
this actually mean in reality

sweeps and do not necessarily
you know predict that price

it just a sweep and grab of all
of that liquidity that had been

understand what's going on
where you just get a wick break

high price then eventually try
to break out to the upside but

tons of buy side liquidity
building up above that swing

because if you are always
anticipating and you just

when it will or won't be used
but we can assume however that

if the market is trending, then
we just assume it will continue

Liquidity is generated all of
the time. We will never know

demand in its way to stock
price because most of those

sitting below that trend line
to then rebalance price. Now,

their stop losses below that
trend line that is now forming

on the daily chart on your
dollar that we've been looking

react to this and then you
didn't take the next valid

reach the supply zone accepting
the risk that you could be

models to get short so in this
case you were initially aware

you were happy to take that
first short when price first

liquidity and when this happens
this is a very high pob ability

structure right if you're using
type one it was just a grab of

swing high so what this means
is there was no true break of

liquidity pull behind it but
like everything it will come

get short but then price ends
up pushing higher and actually

the left so that when price
comes down and it sweeps that

terms of whether you are happy
to trade and get short from a

waiting for liquidity to be
swept first then this can mean

supply and demand price will
then start to sell off

that then causes an
overwhelming imbalance between

when price then you know
continues that bearish move

want to trade away from sweeps
so when price in this case when

that very often can just be a
grab of liquidity of course not

the market when this is
happening they will likely have

buy side liquidity and the
exact same thing occurs in a

inducing buyers into the market
just in front of that new sweep

mitigations right as bullish
order flow is holding with

right and there will also be
plenty of breakout traders who

this demand breaks up higher
pulls back to demand breaks up

demand being respected each
time so price pulls back to

bullish market on the right
hand side right but we have

building up as big money then
stepped in that same day and

there was no true break of
structure to the upside right

swept out but then when the
sweep does happen you then

the swing high right for quite
a number of days price was then

swing structure to the downside
this time to then create a

would then be short or looking
to get short because they may

because it's grabbed that
liquidity to fuel the next move

to the downside so then again
you can look for your entry

supply zone alright again for
the big money to then sell into

strong sweep zone then after we
have that new lower low price

previous internal high but then
the big money steps in using

back here that's in the orange
circle you see how price pulls

starts to break structure to
the downside to form that lower

right on that first pull back a
sweep zone is created because

side right where we have this
bear structure you'll see how

the internal structural high is
swept before the real move

low so again if you look at
that first initial swing pull

price pulls back to form a
lower high but in doing so

and it targets the sell side
liquidity below those equal

from that supply zone to then
sell into right as that zone is

swing leg but it doesn't have
any inducement in that leg so

inducement concepts when we
combine them in the market and

previous minor supply zone now
that minor supply zone I

swing range without the candle
actually closing above the

take that trade if you of
course you are happy to trade

and correctively and it starts
to react and sell off from the

was created so now as price
starts to pull back to the

this case is now a sweep zone
it's a sweep zone because it

of relatively equal highs so
there is a lot of buy orders

have been liquidity sitting
below the previous swing low to

right continues downside from
here and it breaks structure to

zone and inducement this
example here is a very typical

course you combine this with
all of the other analytical

create a strong supply or
demand zone so when you see

will or has to sweep at first
before price may move in your

situations so my advice is to
always react to liquidity

with time and experience in how
you wish to approach these

it's swept to the upside we
then want to trade away from

sweep zone very simply it's
just a zone that takes

that you will very often end up
missing trading opportunities

strong and it will be protected
and price will not trade higher

structure and then reverse the
other way then breaking down

through structure or you know
taking out another zone to then

tapped into and the big money
then steps in and and rapidly

being induced above those highs
right for then the large money

behind those highs however if
price is bearish and that is

highs and utilize the liquidity
pool that is then sitting

smashed price back down so that
the daily candle then closed

when price breaks up it sweeps
the buy side liquidity that was

haven't drawn it on in this
case but you can see how there

shopping around just below that
swing high which then led to

equal highs just behind that
supply zone, obviously, that is

at in all of the previous
lessons whereby the daily had

that is structure is far more
important than liquidity.

took liquidity so you know if
you were to try and define a

to do that. So, in this case,
if the market is clearly

setup that presents okay now
you may remember this example

this is just another thing that
we can look for when those

us that large but also that
sustained price movement that

zone price then sweeps those
highs taps into the supply zone

creating another supply zone
that blue zone there which in

supply and demand is still big
enough to cause price to break

utilizing that buy side
liquidity to take the other

this is an extremely simple but
very very important point and

rapidly moves to the downside
it can then move pretty freely

to then move down and sweep all
of that sell side liquidity

the orders have already been
filled which essentially has

second method that we use to
utilize liquidity concepts with

increase their probability and
strike rate even more of giving

it needs to have taken out
another zone right a flip zone

Sweep zones are essentially
just another way that we can

in the market. Now we're
going to take a look at the

of those equal highs you knew
there was a possibility that

concepts that we have looked at
so far so if we now combine you

know both of those equity
concepts together both a sweep

types of zones are created is
essentially whether or not they

to trade from them okay so
again we're still looking for

previous demand zones have
already been mitigated right

sell side liquidity building in
front of those demand zones now

aggressively to the downside
and there will be almost no

then sweep those highs and it
can retrace back inside the

from that level right but then
what can happen is price can

figure this out with time how
you like to trade what works

overview of the theory behind
using liquidity for inducement

and the risk that you will need
to accept before you enter and

you out of your position that's
okay it's just part of the game

sweeping those equal highs
behind the supply zone stopping

zones to either break structure
or take out another zone right

we can look for in those zones
when they are created it to

so these sweep zones here they
are still based on structural

well let's say your entry model
sets up in the supply zone you

actually cause price to sell
off and actually break that

buy side liquidity that had
just been built up between that

high to then form another
higher high tapping into that

case price then pulls back up
and it sweeps that internal

ready to form that swing lower
low right they think it's ready

engineered or created for the
sole purpose of inducing by or

probability and the strike rate
of these zones playing out in

example in the market where you
see liquid building in front of

care and the reason why is
because what I care most about

sellers into the market, right?
In order to create liquidity

supply level like this when you
know it has an obvious

now this is something that will
be for every trader you know in

supply zone or demand zone
right or looking to trade

they should kind of be a
minimum a minimum requirement

in my opinion for looking to
build a trade idea around the

those are the two main methods
for validating strong zones and

lows so here is another common
example of sweep zones and

in this case when price is
trending so on the left hand

moves down as it seeks more
liquidity to rebalance price

the swing high then we can
assume that that swing high is

zone whether it be a swing
point relatively equal highs or

a trend line either way
whenever you can see that there

not a because price could of
course want to sweep those

of course we have you know the
two main methods for being a

necessarily a strict
requirement it may be in your

that I've done on this is that
when you actually see such an

to break the low and as this
price action is occurring tons

what happens is price only has
a short-term reaction it fails

right below the equal lows and
above the equal highs so then

would be one right from that
minor pullback in that bearish

bullish and price pulls back up
to a supply zone, if there are

their favor for a little bit
but then it suddenly just you

stops them out of their
position before price then

because there will be many
instances where traders get

money will be entering the
market in those areas to sell

and then when you see liquidity
forming just in front of that

where then the big money is
then triggered into the market

that is actually the case but
to be honest, I don't really

front of a key area where big
money is about to step in and

is that these patterns in the
market are essentially formed

side of their sell position
however the imbalance between

to the downside and take out
demand to the downside right

manipulated by the market or
whatever but a lot of the

building up just in front of
that high time frame supply

cleared out those demand zones
so you know when price then

to without experiencing
terrible slippage because

a way that we can essentially
view the order book but on our

sell at because there are
enough buyers for them to sell

level above those equal highs
in theory this could likely be

tell us well using that
knowledge that there is likely

trending to the upside right it
then starts to build liquidity

this manipulation occur in the
market when a zone is created

angry, pissed off, and probably
confused as to why this has

know rapidly reverses against
them and stops them out both of

line so that when price reaches
a really strong supply zone

will be looking to get short on
bearish breakout of that trend

you know refine our supply and
demand zones in the market. So

them or when breakout traders
get long right when those equal

we want to see when price
reaches these zones and we look

they're the two main ways flip
zones or structural zones but

directly off it so it needs to
be either a broken structure or

highs and in the final example
if you are looking to buy the

against to sell against that
buy side liquidity okay so

little bit of profit before
price then pulls back just

likely be a ton of buy sides
equity building up then that is

also have a buy stop order
somewhere above those equal

higher right but anyone who who
is essentially still long in

break and retest of those equal
highs then you would set a buy

remember again for every buy
order there must be a sell

increase the strike rate
overall So that's a brief

our actual trading which is
something called sweep zones.

plan it may be it may not be in
some of your plans right you'll

and liquidity like this in
front of a zone it's not

limit order somewhere above
those equal highs right for

you are short from that double
top you will most likely place

on the breakout so they wait
for the break and retest of

same double top, the same equal
highs in the market but looking

that is often refer to as a
bullflag that some of you may

another common example is where
you will get a series of

below a key supply zone you
will find that it increases the

a supplier demand zone this
does tend to increase the

theory you know the whole
school of thought behind this

will be a pool of liquidity a
collection of buy orders just

so that means that your stop
loss order is actually a buy

right above those highs in the
market so in the first case if

highs right and remember if you
are short and you have sold

these scenarios lead to those
traders placing buy orders

moon and they want to get in
long on the breakout as these

might think that if price can
actually break up through that

as a strong resistance level
and so they would sell and get

take the other side of their
trade. So, imagine if we have

structural levels in the
market, they formed just in

stop hunt and you know,
complain that they were

highs or lows in this case many
traders would call this double

let's take a look at some
examples to explain how this

amount of volume so a large
amount of liquidity to take the

fancy word that you know has
been bounding around the

scenarios all have one major
thing in common. All three of

zones. So, let's take a look at
the first method which is using

to trade it in a different way.
However, all of these different

of how, you know, many traders
could all be looking at the

then pulls back correctively
forming more buy side liquidity

reverses back in their desired
direction and moves without

price charts instead and we can
start to pieces together with

these the traders are probably
then extremely frustrated,

are also bullish but they want
a little bit more confirmation

theory can work in the market
so one of the very common

and not break higher now other
traders would see those equal

the market right so traders
would see that price has failed

you will get filled at an
unfavorable price level so

at these very obvious points in
the market right when everyone

a ton of buy side liquidity
sitting right around that price

stop order in the second
example if you are looking to

then if you get stopped out you
need to buy back your position

who needs to put a huge order
through the market you

other side of your trade
because otherwise you're very

of your trade. So remember for
every buy order there must be

trading space in recent times
and essentially all it means is

and the second method is to use
liquidity to identify sweep

strong resistance level right
so if price can get above that

that level, right? Of those
equal highs for them to then

buy at. So, that's just three
simple but different scenarios

be aware of and then finally,
you may have some traders that

within our trading. The first
is a concept called inducement

double top then they think that
price is going to go to the

where liquidity will be forming
up on either side of the range

be magnetized towards it to
seek those pools of liquidity

relatively equal levels in the
market so now we understand

identify where it is sitting in
the market and why price will

liquidity pools to tap into
those resting orders in the

market to then rebalance price
so what you can do is you can

into the market causing an
imbalance in price and then

relatively equal highs or lows
they do not have to be

likely going to experience you
know really bad slippage and

highs in the market but they
may be bullish overall and they

on but the point is is that
it's a pretty obvious level in

patterns that occurs in the
market is relatively equal

between supply and demand so
when you also have you know

selling a descending trend line
liquidity of course will be

in order to rebalance price
whenever there are imbalances

to induce or to lead other
traders to take the other side

an equivalent sell order and
for every sell order there must

liquidity for inducement. So
inducement is really just a

know there will be resting
liquidity pretty much behind

so how there's you know
multiple reasons for why we

always there just behind where
that swing point has now formed

on our charts but of course
they also come in you know

slight different variations
like this where we don't have

the three main types of sort of
ways that we identify liquidity

price charts where price will
be gravitated towards to tap

to capitalize on and make
profitable trading decisions.

more of a momentum shift where
liquidity will still be

to rebalance price. So now the
question is, well, you know,

but again those are both just
based on the concept of

what liquidity is in the
market, we've seen where we can

into those orders to tap into
that sitting liquidity for

this is where price will then
move to seek out those

building up above that trend
line then eventually an

of liquidity is now building up
on both sides of that range

there will also be orders just
resting there behind those

taken into that bearish move
and of course the opposite is

structural swing points simply
because price previously

back then it forms an internal
lower low right so many traders

into price breaking that high
to the upside now of course

think that the swing lower high
is now in in place and price is

to start to break structure to
the downside however in this

the other side of that
liquidity right to then

perfectly equal highs or lows
but you know what you can call

price to then fill and
rebalance itself so those are

diagrams you can think of those
as kind of you know like

just listed so traders will
have stop loss orders behind

perfectly equal but when you
get this such as you know a

them as well as traders looking
to play a potential breakout of

focusing on within our price
charts so if we look at swing

newly created sweep zone that
blue zone it pulls back nice

to take out that swing low and
if they wanted price to keep

created you know whether it's a
swing high or a swing low more

zone right? So we have zones
and we have flip zones and

structure or you know even any
sort of structure created in

is. So if you remember what
those are that a zone either

took out and swept liquidity
behind those equal highs as it

liquidity when it is created so
essentially price will sweep

below the swing low, right? So,
if they were looking for price

needs to break market structure
or it needs to take out another

think of those dotted orange
lines drawn on here on these

double top or a triple top for
example there will be loads of

orders going to exist for a
multitude of different reasons.

going to have their stop loss
just below the low and anyone

and flip zones but it's just an
extra piece of confluence that

every structural swing point in
the market and price may

eventually seek the liquidity
behind those structural points

below the swing low or just
above the swing high and those

in this case buy side liquidity
is building up above those kind

these are often very high
probability zones when of

setup that we will very often
see in the market so Prices

for you and what doesn't but in
general they do definitely

strict requirement for
validating what a strong zone

actually tapping into those
orders that you know were

are not looking directly at the
order book then how can we

reversed and turned away from
that swing point without

actually spot where there is
liquidity lying in the market

be a very useful tool for us to
use in our analysis but if we

and then provide fuel for
further market moves. So,

identifying liquidity in the
market, you know, can obviously

below that swing low, right?
And they'd be looking to get

reality. So, what I've found is
with my experience in the

market and the extensive
testing and data collection

the desired direction so kind
of having you know inducement

is whether or not the actual
concept, you know, works in

true as breakout traders would
also place a buy stop order

going down, then, they would
have their sell stop order just

trade breakouts, they would
have their sell stop order just

have no idea or you know, I
have zero proof whether or not

for large players to then buy
or sell into. Now, I personally

probability of these zones
actually playing out now the

other confluences that we use
to realize that potentially big

returns to those zones. There
is another tool and concepts

magnet for price to be
attracted to because after

then happened and you'll often
hear people refer to this as a

identified a very strong supply
zone right this grey box here

those equal highs that level
breaks and prices moving in

times, the reason why is
because those obvious

short from a double top and
they be running you know in a

order so they need to find
buyers to actually sell to so

get triggered in on the
breakout to get long you will

structural liquidity in the
market that we're going to be

essentially just viewing this
process on the order book via

orders may be sitting in the
market and where price may

an area that big money is
going to want to step in and

price to tag you in so what
does this information actually

these liquidity pools to tap
into to try to rebalance price

can see these levels where you
can see where there will very

that we can then use that to
our advantage when price

the market once that market
structure has actually been

help us with direction. So
whether price is bullish or

equal highs can also look like
a very common price pattern

big imbalances in the market,
prices then constantly seeking

your stop loss order somewhere
up above behind those equal

those huge shifts in supply and
demand that have caused those

gravitate and move towards and
that is of using liquidity

obviously going to want to do
where there will be a large

twice to break up higher above
that level so they may see this

be an equivalent buy order. So
if you're a large institution

trading this a liquid market
let's just say you placed a

an equivalent buy order for a
trade to occur so if you were

those huge imbalances and
shifts in price and therefore

of the all of the liquidity at
the nearest ask price and price

with an equivalent sell order
and vice versa for every sell

short because they hope that
price will sell off from there

Well, there are two main ways
in which we utilize liquidity

top but of course you can have
triple or quadruple tops and so

magnets in the market you know
there are all areas on your

you know those pools of
liquidity they will starting to

rebalance price at a fair
value. So The aim of the game

the price action on our charts.
So we use market structure to

be building up below the trend
line and then when people are

that we are playing by using
technical analysis is

bearish if we are trading with
or against the trend. You know

overwhelming amount of supplier
demand will eventually step

building behind them or we can
have you know a range forming

how do we actually utilize
these liquidity concepts for us

those levels and the same goes
for the trend line as people

show us where large orders have
entered the market to cause

where orders may potentially be
left sitting in the market so

were using premium and discount
tool to help us with that. Then

orders sitting behind them for
the exact same reasons that we

are you know buying and
ascending trend line so orders

price charts so far, that's
what's happening, right? We're

every buy order in the market
to be filled it must be matched

the price action, right? Via
the candlesticks on our charts.

just above the swing high right
if they wanted to get taken in

see those large imbalances
between supply and demand in

stop loss above the high. If
we're looking at people who

who is sold at the swing high
will most likely have their

Anyone who is bought at the
swing low, they are most likely

framework to read what is
happening on the order book via

concepts. Now, liquidity in the
market essentially acts as a

how this all fits together
within the multi-time frame

story and how well priced it is
within the leg. Right so we

essentially using all of these
concepts as a mechanical

available order wherever that
may be because remember for

you're asking for the for the
house you know they're just not

just going to have that in a
briefcase in cash right they're

that we can use to help us
identify where large pools of

we have looked at how we can
use supply and demand zones to

than likely there will be
orders that are sitting just

on our price charts well there
are three main types of

So prices moved by that
imbalance between supply and

go through but in the FX market
a liquid market conditions are

market buy order of $700, 000
you would instantly absorb all

the market when we've been
looking at those zones on our

your door ready to buy with the
exact you know amount that

demand and it keeps moving to
seek liquidity to then

pretty much always be enough
liquidity on the other side of

all of your demands had been
absorbed by the market So price

housing market you know
everyone knows property if you

is constantly seeking liquidity
to rebalance price. So when we

would continue to shoot up
another five price points until

of an order book in the market
so each of these lines

to so that's a pretty good
example of an a liquid market

very typical example of an a
liquid market would be the

liquid there will be bids and
offers at every single price

keep it simple for our purposes
in the market. So market

if you're just a retail trader
and you're not putting through

you know it can take months at
a time to make that transaction

not going to be a willing buyer
straight away for you to sell

gapping you know either up or
down to fill the next best

broker then it's very likely
that you have got instantly

demand at those levels may be
you know much much lower so a

little warning. I'm sure some
of you are just blindly

crack on with it shall we? So
liquidity is a concept that can

without you know severely
affecting its price. So this

a market. It is the ease to
which a market can be traded

liquidity is essentially the
amount of demand and supply in

that solid understanding in the
core components of the strategy

exactly what I do not want to
happen for you. So, this is

to trading in general and I
just think you can end up

order in the market to be
filled it must be matched with

pretty much where you're
going to very often see price

filled because it is an
extremely liquid market will

just that much bit and it
really brings the strategy up

limiting your speed of
progression which is just

markets there may not actually
be any bids or offers at

you know billions of dollars at
a time however with a liquid

it's the first time learning
the style or if you're just new

just you know standing outside
your front door knocking on

to another level but it is not
necessary to be consistently

liquidity concepts you know it
can help us to refine our edge

much success that you can have
keeping the strategy as

just get unnecessarily over
complicated. So we're going to

on each level so if you have
ever clicked you know buy or

sell with an at market order on
say Euro dollar via your FX

represents a price level in the
market if a market is very

diagram illustrates what
liquidity looks like in terms

put your house up for there
will not instantly be someone

certain price levels and all
the quantity of supply and

and foremost. Now I'm not
saying that to try and insult

think they can just cause
unnecessary confusion until you

your order to instantly fill
your trade you know especially

simplified as possible. So when
we're going to start to add

comfortable with those alone.
Okay so you know there's your

level but also with a large
amount of volume sitting there

ignoring me and that's cool. So
I'll shut up now and let's just

haven't spent the time testing
those previous concepts on

you've spent a fair amount of
time testing and getting

So, you'll probably remember
this diagram from the intro to

which is market structure
combined with S and D zones and

why, you know, it's just really
imperative that you really have

personally know how powerful
just using both market

massively advise you to not
really watch this section just

market structure on supply and
demand zones, then, I would

and highly profitable. Now, it
may be a bit overwhelming if

structure and supply and demand
concepts together on their own.

your intelligence. It's just
more because you know I

You know I know how just how
effective that can be and how

have mastered structure and
supply and demand zone first

essentially, if you're not
super comfortable and if you

the technical analysis lesson
at the start of this module and

yet and the reason why is
because liquidity concepts, I

you in the next one.