All language subtitles for 4. Liquidity (Walkthrough GBPUSD)

all right so now we're going to do a walkthrough on pound dollar now one

thing i just want to preface before we dive into this as you you'll see tons of

examples of this but pound dollar absolutely loves to

sweep liquidity and it loves to have inducement before

it zones right so if you've you know probably the majority

of you have been following along and also doing you know the majority of your

markups on you're a dollar and really studying and diving into the price

action on there but if you start to look at you know a pair like pound dollar

of course all of the same concepts apply but sometimes the behavior of an

individual currency pair or even in different asset

classes they can have you know slight different behavioral tendencies and as

you're about to see your pandola it absolutely loves to sweep liquidity and

it loves to come back to sort of those those origin zones those extreme zones

of the move that took liquidity those sweep zones for price and then come back

to um and mitigate so this is definitely a pair if you're

going to look to trade it and that would definitely get very very comfortable

with liquidity and really study and see um how it loves to move so again what i

mean by that is let's say we have a sweep zone right that takes the lows and

then takes the higher like that all right you can obviously have

decisional zones that are you know somewhere up within this leg around

about halfway and then this zone down here is what we would refer to as the

origin of the extreme and you'll see that a lot of the times pound dollar

loves to come back uh down to this extreme zone more so than the decisional

now of course it's not just a hard and fast rule you can't just always assume

that price you know has to come back to this extreme there will also be you know

a number amount of times where price will react from the decisional so this

is just where you know we never know for certainty we just have to play the

probabilities game we have to stack as much confluence in our favor um yeah and

then just try and decide which poi we want to focus on

now when you're first starting out kind of a more simplified rule or kind of you

know technique you can use to kind of help you when you have multiple pois

and you've tried to refine them but they both kind of have a lot of confidence

and you're not quite sure is what you can do is you can play the

reaction to the decisional and then you can trade the extreme directly so what i

mean by that is you could literally just set a limit order on the extreme down

here but then if price comes back down into here into your zone and you drop

down on the lower time frame or of course you could view on the same time

frame that you're looking at wait for those entry models right and then you

can look to trade the reaction from here but you just have to be aware that that

could be a short-term reaction just to then build more liquidity right below

these lows for price to then come down and sweep tap into this uh sweep zone

here before then that real move real move goes right taking this liquidity

here but anyways we'll dive into this as we go through the monthly chart now

so monthly chart on forex.com the data doesn't go back that far and it goes

back to 2006 but let's just work with what we have so based on this we're

clearly in that sort of more longer term larger bearish monthly trend right where

we had this pool back here to form a lower high taking out those lows there

to form a lower low and at the moment we are potentially just pulling back to

potentially go on to form another lower low right

but even just looking at this kind of small amount of price action here on the

monthly chart we can see the kind of liquidity

concepts in practice um even just on this alone so what happened when we

initially had this bearish move back in 2008 price then pulled back right it

tried to form that lower high so it tried to move down to then form that

lower low and take out the low but it failed to do so so then what do we know

we know that this is likely to be a weak high right because it's failed to take

out the low so we know it's likely to get run

so then we chop around for you know a number of years so what's that from 2009

to about 2014 so about literally five years um yeah we just start uh ranging

in between that internal high and that internal low and what does that mean it

means we're building tons of liquidity by side liquidity above that external

high uh tons of liquidity below this low here right

and price does not move we don't get that continuation until literally price

just sweeps the high taps into that sell side sorry that buy-side liquidity and

then that large uh you know big supply comes into the market from that big

money to eventually then push price on to come down for that lower leg right

and even on the way down what do we do we swipe those or we sweep i should say

those uh mini equal lows there right what do we know after sweep of liquidity

if it's pro trend it's likely to just give us that pullback right so after

sleep of liquidity we generally will get some some form of a retrace or a

reaction in this case because it's pro trend it's likely to be just a pullback

rather than a phenomenon reversal just for price and fuel the next move there

to the downside right taking of course we have trend line liquidity there so on

and so forth and then price comes down we pull back

up we mitigate uh this area of supply right and then we've chugged down and

we've tried to take out the low now on its first attempt down it didn't even

wick the low right it didn't even break it whatsoever price then retrace giving

us that nice really obvious sort of double bottom in the market and then

what happened tons of liquidity built up below here right that's sell side

liquidity pricing came down tapped into all of that liquidity and then the big

money in theory right stepped in to absorb all of that cell side liquidity

to to buy into and eventually we saw that overwhelming amount of demand break

up this minor break of structure to the upside right so

we did initially have a bit of reaction to that minor area of supply we reacted

but then we flipped there to the upside and now at the moment we are struggling

to break sort of this more extreme uh monthly reaction zone there uh supply

zone s so at the moment you know long term i would

still say the overall trend is still very much bearish and sort of that more

monthly to quarterly um time frame however we do have to be aware that

we've had a massive sweep of liquidity here right and we are starting to break

structure to the upside so i think if we can start to try and clear these highs

with sustained momentum then potentially we'll see another longer term move and

but of course yeah if we kind of struggle to break these highs here then

very much we could be starting to pull back either down towards this flip zone

here or potentially down into this extreme sweep zone and as we know

pandora loves to come down and mitigate those areas so that's kind of where

we're at with the the monthly chart now diving into the weekly chart we can

very clearly see at the moment that we're struggling to break uh this pretty

clean weekly supply zone up here at the top of structure just put it on as our

weekly zone now what do you notice about this zone

why was it a strong zone number of reasons sort of the more obvious one

being right it's right at the extreme we know these zones are always going to

have a pretty decent reaction but kind of more what's relevant to this video is

it's a sweepstone right it took the liquidity sitting behind that high swept

that liquidity and then that fueled the move to come down and eventually break

those lows down here right so that's a pretty pretty damn strong zone that's

why we saw such a violent reaction initially when we came into there

however for me at that point price is bearish because if we look at the recent

trend right we came down we started to break structure there to the upside so

that for me uh is a a weekly break of structure

i don't have a weekly template saved there i don't usually always draw them

on i'm more as you guys know tend to just mark out

whatever current range we are within right so i'd mark that out as my weekly

high and then down here would be my weekly low so let's just quickly line

this up uh there we go so price tapped into our

area supply it tried to pull back right and then we started to

form what looked like it was going to be that weekly high low because it tried to

then go on and break the high but as you can see it just worked that high tapped

into the external range liquidity sitting behind the high and then that

was enough to then fuel that move back to the downside so as we started to

sweep that high and then as we look in a minute on the lower time frames as we

started to break structure to the downside just like eurodollar right

pretty similar price action that gave us a very strong indication that this was a

weak weekly low because it failed to do its job so then price was going to come

down and we could look to target that for price to a minimum run that low

right now what's happened is price has swept it tapped into that liquidity and

we've had a pretty aggressive sweep and retraced back inside so now there is a

good possibility just like eurodollar that now the weekly higher low may be in

place and we can look to start to target that higher high forming and obviously

we left some pretty nice equal highs there right relatively equal highs we

know there'll be tons of liquidity sitting behind there for price to

potentially want to tap into um for that higher high of course there's no

guarantees right we have this whole weekly leg right we're still pretty much

um you know in the premium premium of this leg and there's possibilities we

could come down to some of these more extreme zones down below here especially

as we're coming off a very nice uh weekly sweep supply zone up there but

like i said say this time and time again i literally

have no idea which way price is going to go i don't care right i just follow my

systematic sort of mechanical framework of identifying you know structure where

we are within each time frame if each time frame is british or bearish piece

you know the puzzles together and at the moment the weekly for me is still

bullish i'm aware we are coming off supply right so i am aware in the back

of my mind we could break down there but for now we're still bullish we swept the

liquidity below that low so i am looking for that weekly high low to form at any

point so on the daily chart we can see that price action a little bit clearer

so let's mark on the daily range that we're within we can obviously see this

larger weekly range but if we just kind of paint the picture from where we had

that last true break of structure and for me that was where we had that daily

pullback um over here so just clean this up a little bit i'm gonna get rid of

this weekly high and the weekly well we can just leave it there for now um also

gonna rain in this weekly zone just so we can kind of focus on the price action

so we had this daily pull back here then we made that higher high and then we've

been pulling back ever since so this was that weekly sorry that daily

high right price then pull back into our area of

daily demand so if i refine this entire daily range right we can take the whole

range or we can refine it to that last candle right that then led to that break

of structure we can see the price pulled back into here and then it tried to make

that higher high it failed to do so swept that into external range liquidity

right and then we started to break those internal lows to the downside which just

similarly to euro dollar gave us a strong indication that these lows were

going to be weak so then we can you know have a reasonable sort of high degree of

probability that price is likely to come down and want to run these lows here now

even back here when these lows initially formed right we could always kind of

view this with quite a bit of suspicion because it didn't very it didn't form

like how a very strong low should form right so what do we know about kind of

strong swing highs and swing lows they should form like this right with a

pretty kind of sharp aggressive move away because that shows you know the big

money stepping in but what happened here is we pretty much left perfect equal

lows there and we know that that is likely to have a lot of liquidity right

for price to come down and take those lows out so

kind of whenever you see that it's pretty suspicious right that that is not

going to be a strong low that it's going to hold but this is what i was saying

right in the theory this uh the theory the theory video

that you know at this point here when we see that and we start to get those kind

of minor breakthrough structures to the upside we've come off a level of demand

yes we can see those equal lows there and we can be suspicious of it but that

doesn't mean that we have to wait for price to be swept and then miss out on

all of this potential opportunity here we don't have to sit on our hands right

until this move happens here okay so that's what i say kind of react to

liquidity being swept don't necessarily always you know predict it and let it

put you off taking positions if you see kind of you know other pieces of

positive confluence that you know is then worth enough to to look to take

those long positions here so then once we swept that high we

failed to break up above we know these lows are very likely now to get run what

do we also know about this demand zone well if we're being very very kind of

strict and true to how demand zones should you know technically be drawn it

should be on the last bearish candle before the bullish move like that break

structure but in this case we drew it on the bullish candle before the bullish

candle so what we can do is we can refine that right to the fractal

refinement to the fractal wick because it's very likely within that wick there

will be that lower time frame right cell before the by that break structure so

now we can see that we have you know that fresh unmitigated fractal

refinement so i'm just going to drag that across to over here

so sorry about that you could probably maybe hear my puppy howling in the

background so i've just gone and sorted them out so hopefully

there should be no more interruption so yeah as i believe i was saying we have

refined this deadly demand zone down to the fractal wick and what do we have

about the zone right why is this a good zone obviously we can see with the

benefit of hindsight it played out but we were at the time right

waiting for price to come down to here knowing it was a very high probability

zone uh for a number of reasons one we have literally perfect equal highs in

front of it right nice uh piece of inducement there all right so

there's your inducement but then how was the zone created right it's a pretty

strong sweep zone where we took the liquidity sitting behind those equal

lows there so we knew it was very high probability

that this stone was going to hold because this is still our daily strong

low right it did still take out the high and this is the bullish range we've been

in the entire time yes the move went up to try and make the higher high and it

failed to do so but then it's these lows that become weak prices then come down

to sweep that liquidity and tap in towards the fractal refinement of this

zone and that's why we've had such an aggressive move in an aggressive move

out that has now given us that internal break of structure again to the upside

so the swing range is still bullish but now the internal price action has

switched bullish again right so now there's a good indication that we can

look for that internal daily higher low right to now try and see if we can run

those big equal highs up here to form that higher high

so very clean price section there on the daily chart let's go and see how that

looks here on the four-hour chart so if you come and look at the zone right

you can see that sweep zone pretty much in perfect formation right we had these

nice equal lows here prices swept those lows and aggressively moved to the

upside right and then took the liquidity that was building on the top side there

of the range so what we can do is now refine this candle here

and drag this across and you'll see how price and had a

beautiful uh move away from there so yeah let's just kind of look at this

sort of more recent price section and work our way through and take a look so

for our chart we had this pullback from this higher high

that would have been the high and then we didn't break it until here that's

when we tried to attempt to make that daily higher high so then the lowest

point for me would be this low here and then we didn't close above that until

here so then that would be one leg down right then we pull back up and then we

didn't close below that low until here right so for me the highest point from

that pullback would be this high here and then that would be

the swing low so just going to draw those drawings get rid of those drawings

i mean and then we'll put in that last break of structure there to

the downside all right and then we are clearly within

this bearish range now one thing you'll find about pandora as well obviously

talked about liquidity but um i have found personally that being a little

less tight with how i kind of define structure so kind of looking at those

more larger swings in price action tends to work better for me with pound dollar

compared to euro dollar so i'm reasonably a bit more aggressive with my

structure in there a bit more tighter whatever way you want to describe it but

with pound dollar i often find that kind of just looking for those kind of more

obvious swings in price action um can kind of yeah help you kind of help to

prevent you getting chopped around now of course you can draw structure the

exact same way on here as you have done on other pairs such as euro dollar but

you just kind of have to accept that the trend is going to be changing a lot more

frequently for you because price will be breaking

those sort of more minor highs and lows um quite often which you may define as

your swing structure so just make sure you kind of practice with it and you'll

start to get a feel a feel for it and see what's work see what works for you

sorry i can't get my words out now uh but you know what's the number one rule

i always say whatever way you do things just make sure you always do it that

same way right bring consistency in your approach to the randomness of the market

and that is how you then you know can keep that edge and have data to back up

that same approach that you are always um bringing so

yeah obviously within this bearish leg price then pulls back up towards sort of

more the eq of that range to then reject the supply zone here right so this zone

here for instance yes we get a reaction but you know it's not necessarily

somewhere we're going to expect a lower low to form because it's not in you know

it's not a well priced zone it doesn't have any inducement in the leg right

it's just pretty much a clean push so what ends up happening is this level

becomes inducement and then that reaction ends up building uh you know

those equal highs to then provide the inducement for this zone here right and

then that's where we see that next swing leg to the downside there so then if i

drag this zone across we then get our next four hour break structure

and an exact same thing this is one big leg down right and then we get this pull

back here so price pulls back and then we just get a bit more of a complex

pullback this ends up just providing inducement for then our four-hour supply

zone up above which is where price eventually ends up reacting from so just

drag that across right and you can see it again um inducement before the zone

whoops delete the wrong thing there so we have inducement but then what also do

we have we have that area being a sweep because it ran the liquidity behind

these highs right just pick that high there that's a decent sweep zone came

into this area here right this area of demand will should be a bit more

significant on the lower time frames so we sweep the high price comes down into

the area of demand we get the buy tries to make a higher high it fails to do so

because supply then steps in and that leads to the flip the change of

character and eventually that swing break of structure so we have a sweep

zone a fractal flip zone right if we take the whole buy to sell wix or of

course we've already had that reaction from here right so initially you may

have had it drawn like that which is definitely valid and this is why right

when price first pulls back into here we sweep the liquidity here this is more

than valid we can start to look for entries to take this short and we can

start to try and run that low but as price comes down here

and then we start to see changes of character on the lower timeframe and we

start to pull back up we don't want to be getting short from the supply zone

because it's failed to do its job right it's failed to take out this low so it's

very likely that this is going to be a weak high it's going to get run and then

we can refine our four-hour zone you know to just the wick obviously a bit

clear in the 15-minute time frame and so on we know that's now very likely going

to be inducement and then we can look for our entry models within here to now

run all of all of this cell side liquidity right that's building up it's

below these lows below the trend line to then target that next swing leg to the

downside okay so let's actually take a look on the 15-minute chart uh and take

a look at how all of that price action played out and you'll see right

being a bit more loose with your kind of a four-hour structure definitely tends

to work a little bit easier um with price action because if you kind of

define us a little bit tighter and then you were kind of looking at all of this

thinking we were bullish right and then we've got a higher high there then you'd

be looking to get along here but in reality

that's not the case right so this is why this zone just gets smashed through and

the four hour isn't bullish because this whole time that is the one swing leg

down and this was just a complex pullback right to form that lower high

and then we got that lower low there so let's have a look on the 15 minute chart

back at this price action

all right

and you can see as we run this high here and we come up

into this four-hour supply zone um again at first range this can see some uh well

it is quite complex structure and you can end up getting chopped around here

if you don't kind of define your swing structure consistently so

how i would probably personally approach this there's kind of two ways you can do

this one you can be you know very very loose and just want to really see those

obvious swings in price action so if you are you know more suited to that way and

it makes more sense to you then you would see that as the first pull back

and then all of that move there would be one push up on the m15 so this bit of

this pullback here would not be enough for you and you would define your swing

structure that way so then when we pull back here we are playing within this

high here and this low here so the m15 would not switch bearish until this

point here okay and that's definitely more than valid or

how you may view it is that actually this is a significant m15 pullback right

so we'll kind of look at this more slightly tighter approach so that would

be an m15 break of the high then we get an m15

break of the low there right and then that would be a pretty decent uh push

down we do do then take the low here so let's draw that on

all right so you can see here if you're being a little bit tighter with

structure your trend will change a lot more because that means we take the low

then we take the high but it's a pretty uh clean straight push-up we then come

in and we mitigate this zone here right but it's just enough for a little bit of

a pullback and then we break up higher but we fail to close above that high

right so we stay we're still bullish but then price comes down and eventually it

takes out this m15 lower down here and now we are bearish so we tapped into

that four-hour area of supply all right we swept that for our um inducement

that previous week high that became inducement for the four hour refined

zone right and now the m15 over here has switched bearish so that's kind of if

you're a bit tighter with structure that's how i would have arrived at that

point to here on the 13th of july as having the m15 and was kind of confirmed

bearish again but if you're a bit more loose with your

structure then the m15 would have wouldn't have been bearish until

right this point here so that would have been your swing low and this whole time

you would have just been waiting for price to then come down before here

before it confirmed bearish but obviously if you're a bit tighter we

would have been bearish here but then we switched bullish again before switching

bearish okay so i kind of just wanted to show here it's a good example of how you

can you know you can not get full signals but

the trend is going to change a lot more often for you if you kind of are a bit

more tighter with price action compared to if you're a bit

looser for lack of a better phrase but just make sure you are consistent in how

you do it right so either way whichever way you define a

structure at this point you would have um this as your lower low and then the

highest point if you're a bit tighter would be this high here all right so i'm

just going to draw a line across or if you did it that looser approach it would

actually be this high all the way up here because

remember that would have been your break of structure whoops

that would have been your first break of structure there so where is the highest

point before the slow broke that would be high there right so just be a little

bit higher but let's just stick with the way we've got it now just so we can try

and keep this as simplified as possible and not get too confused okay so

this whole time i would have that marked out as my m15 range high and this would

be my m15 range low there right so this is kind of what i mean if you don't

if you suddenly jump on the charts right and you don't paint enough of the story

and you're jumping around here you're going to be defining the structure as

all others are like okay we're bearish we're bearish okay now we're bullish

now we're bearish again you know it's going to be all over the

place and it's going to get chopped around but actually you need to make

sure that you have you know gone back far enough to make sure you know where

your swing high and your swing low is so this whole time and price is pulling

back you know you can play all these counter trend moves but you have to

understand that you know the pro trend trade the pro m15

trend is going to be to the downside so we come up here we mitigate an area of

supply right we try to move to the downside we try to take out these lows

here but we fail to do so right so then as we come down and then we break

structure to the upside at this point here it's very very very likely not

guaranteed but very likely that this high is going to get run because it

failed to do its job so what happens is this high here becomes inducement we

know pound dollar loves to do this um sweeping liquidity before the real move

uh starts to kick in and then we mitigate uh very clear um

flip zone over here all right

flip zone because what do we have we have some minor demand price has a high

high comes back into demand it reacts and then we get our flip and change of

character right so very very decent zone sitting above liquidity get that

inducement and now the real move is starting to take off and eventually then

we come down sweep those equal lows there and we get that confirmed lower

low right and then that becomes our next sorry not that high there this high

becomes our next swing highs that's the highest point

before the low broke so in theory this m15 high should not break

so we tap into that external range liquidity sitting below those equal lows

and we start to get that pullback right we only expect a pullback right because

it's a sweep that's with trend um whereas if we kind of came up here and

swept that high and came back down we would then expect right that full-on

reversal because it's with the m15 trend at that point so

again if you see this breaker stretch to the upside and you're starting to kind

of look at these lows down here yes it is possible to trade this and you can

take it but you have to understand that it's counter trend and that's why you

know price ultimately only ends up reacting just to provide more liquidity

like to then fuel that next move to the downside right um and it's all about

understanding where your swing highs and swing lows

are realizing that this is just becoming inducement for our supply zone um up

above here right and get the zone to draw on properly

and then we get that move to the the downside there so if you were looking at

longs from here you just kind of have to manage your expectations and cover your

risk a lot quicker and knowing that we have just swept liquidity and we've come

off a zone um you know more towards the premium

of prices there so i just kind of want to cover that section of price action

here because you know depending if you're kind of

very very tight and aggressive with your manager not your management but with

defining structure all of this can be quite complex structure especially in

here and you can get thrown around a lot um you know it can be very confusing

whether you're bullish or bearish and you can be trading you know supply and

demand zones within here and you can end up just taking a lot of losses or price

only moving a little bit before it's reversing and it can get very very

confusing so if that ever happens just zoom out a little bit you try and paint

the story a little bit better um or further back just to make sure you've

got your eyes on those in the right place or you know another tip is just to

be a bit more looser with the structure and look at those more obvious swings in

price so we'd be bullish the whole time try to make a higher high fail to do so

then we're bearish all right and then we're playing within asparagus range and

then that clears everything up for you um a lot more

i mean even in here right you can see every time we sweep difficulty we get a

retrace we come down we sweep these lows here and we get a retrace right below

those equal those there haven't joined it very clearly but as you can see right

retrace back in here sweep those equal highs there mitigate something left

that's left within those wick for inducement then we run the low so we

switch liquidity below that low but we also tap in liquidity below these lows

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

sweep that inducement right for this zone up here and then that's eventually

enough to fuel the move to come down but obviously as we sweep these lows here

right where there's more liquidity building up we then get another pullback

before eventually we get the move but even there what did it do

it pulled down slipped the liquidity and then we go pound dollar loves to do that

right it loves looks like it's forming that lower high and it comes back up

sweeps the liquidity that had just built behind that lower high or that kind of

fake lower high and then it goes okay um so yeah

let's just go back up to the four hour time frame

so yeah that's kind of that whole section

of price action and the whole time if you're kind of just a bit more loose

with this structure you can understand what's going on that that whole time it

was just that four-hour complex pullback right into supply to then look for that

real uh move down here and then that's when we came down in towards sweeping

those weak lows and down in towards our four hour and daily sweep sewing down

here and then we saw that aggressive uh move

away so yeah that was looking like to be a very

very good swing position to look to get long as we came down in towards this

zone um let's quickly study this on the m15 unfortunately i can't go back this

far on the m1 as the the data just does not load so can't quite look at you know

super refined trade entries but even just looking at the m15 structure

there's plenty of here for us to study and understand because what do we get

price comes up into the kind of last sort of major area i would say of supply

it reacts right the reaction fails we don't get

the change of character until kind of over here so now we have our flip and

our change of character and the price comes back in and again what you'd love

to see in pandola is it loves to sweep lowe's right before we then get that

real move then we get the change of character come back into the supply zone

right let me just go to these drawings so you

can see it so we have supply here price comes into the supply right first to

make the lower low we get the flip the change of character back into demand and

then we are off so yeah these lows ended up getting swept and what we actually um

ended up moving off towards was that kind of first fractal um flip that

occurred right because we were bearish we were bearish supply was in control

and then we would have had lower time frame uh supply over here right

past comes into it reacts and then we go away so then we have these buy to sell

wicks here just put that on there and that's eventually what we then

came into then we got another flip a change of character and then we got the

movement away there so let's head back up to the four-hour

chart and then if you're in any positions down here you are golden to

try and target that um well ideally the long long term target is to try and get

that swing daily higher high right of course you know it's quite a long way we

want to try and pay ourselves on the way there's no guarantee that we're actually

going to make it up there especially after coming off that major weekly

supply level right but we start to get the four-hour switching bullish again so

at this point that would be the highest uh the lower high like the highest point

before that low broke so then we now get the four hour switching bullish what do

we expect after a four hour higher high we expect a four hour pullback right

after what do we do we tap into tons of liquidity and we come off this supply

zone here right so we have the whole for our supplies in there or of course you

can refine it a little bit more and which we can see price then eventually

reacted to why was the stone a strong zone well we had inducement above it

over here right when the zone was created

it's ideal that we see liquidity sitting really near it

also it was a sweep zone right it's a bit more fractal but how how was the

zone formed well

price came down be clear on the 15 minute timeframe of course and then pull

back because it failed to break that low then it took the low right so the logo

token token the low got taken so you know on intraday there will be tons of

liquidity forming up behind that lower high right because a reasonably strong

lower uh lower time frame high because it took out that low there so all that

liquidity is building up above that height price that comes up taps into all

of that liquidity sweeps all of that liquidity and then that fuels the move

to go right so that's why we have that liquidity being taken and that becomes

our strong for our supply zone with inducement we tap into that

we're going to start to get our changes of character right price pulls back up

into supply excuse me

and then it starts to initiate that deeper pullback that we expected after a

four hour break of structure so what we can start to look for of

course we can start to trade this to the downside right whilst internal structure

is starting to switch bearish as we start to take out these lows we can

start to trade this counter trend pullback and just wait for you know that

uh change of character again for the internal structure to switch bullish and

then we can expect that for our swing high low may then be in place for us

then target that next four hour higher high and then potentially all the way up

to getting that daily swing higher high again so just to summarize

we've swept in we've you know taken that inducement in front of our daily and

four-hour zone which was a sweep zone we've tapped into there we looked at how

we could have timed that on the 15-minute chart right to get that uh

that that trade to take this long targeting that four hour higher high as

our kind of first real decent swing target what do you expect after four

hour break of structure we expect the four-hour pullback um what can we help

us to define when that four-hour pullback is likely to start we get a

change of character what happened we pulled back we just wixed the high took

the high that means we have a minor low here we get our change of character we

pull back up into the supply that caused that and then we can start playing that

pull back right down into demand zones but what also helped us not just a

change of character but it comes off a decent supply zone this was a sweep zone

right it took liquidity it has inducement in front it's also a flip

zone right because we have this as our area of demand so price came into it

took liquidity there flipped chalk right all of these concepts can you see how

they just apply everywhere and it really helps us to refine and understand why

price is reacting you know strongly from his own so

you know one exercise you can do this goes for any player in the asset class

blah blah blah blah all right let's go and look at these big turning points in

the market right here and here yes you can go and focus on these and study

these but just when you're starting out really focus on

what you know big money has to really i'm talking massive amounts of money you

know especially these major major currency pairs it takes a ton of

money to cause price to react like this especially a move like that so if you go

and just look at circle all of these big turning points on your charts and then

go dig down in the lower time frames and just really try to understand why is

this happening look for those confluence that happens inducement liquidity sweep

flips right that's where the change of character occurred it came from that

mitigation right in the in more of the premium the eq of that prior range right

so it makes sense if you're following the money that these are the areas where

there's going to be big money within here to then initiate those larger moves

right so then at this point what do we have prices pulling back kind of first

real clean for our zone we have is probably this area here right we can

refine that to fractal wick because it's the buy before the buy so we know likely

there will be that lower time frame sale that we can um yeah just refine

uh price to what else so do we have we have this inside bar

what increases the the kind of probability of this inside bar for me it

didn't really take liquidity you know arguably something below these cell to

buy wicks um it's not the cleanest in terms of the four hour but it's

definitely there what i kind of more like about this four hour zone is that

there was this four hour supply zone here right so it's the flip zone price

came in it reacted that caused the the flip zone to fail

right um even here what do we have price initially comes in it reacts and then

you know wicks that reaction so we didn't get a camera closure below but it

definitely starts to show that that reaction started to fail we then come

back into that supply then we actually get the candle closure right below

that reaction there sorry it's became very very messy let me

draw this on right we get that

um let's get this four hour on make it dashed right that's the reaction failing

here so at that point what do we know now we really know that the reaction

starts to fail and we end up coming up to that last point of supply right that

frat door refinement we tap into there and then we're off to then form that

lower low right um yeah so on and so forth so let's kind of take a look in

the 15-minute price action and see you know potentially how we could have been

looking at trying to catch any 15 well not 15 but any uh any of those four hour

high lows um as price was coming in and again you know that's

massive for our zone so you can start to refine it and what do we have here we

have this massive wick what did that wick do that wick took the liquidity

below that low right it came down to the took the liquidity and that fueled the

move to the upside remember what i said about pound dollar it loves to kind of

form what looks like it's going to be that high low and then it comes down it

sweeps it and then you get the raw move right so yeah pound absolutely loves to

sweep liquidity so what we can do is refine that four hour zone to this m15

wick all right but even that is quite a large wick

and you can see all of that inducement building above it eventually price taps

into it right it sweeps all of that liquidity and then you get that

aggressive move away and then we can refine that all the way over to here but

i'll tell you what let's see if we can you know this is what i'd be doing in

live market if i have a massive zone i kind of want to try and refine it as

much as possible so let's dive into that and hopefully the

one minute chart will load for me let's take a look

okay so what do we have what actually took

liquidity right it took the liquidity below the slow we have this fractal

refinement down here which we can then draw with our m1 zone

so now let's draw this across we obviously have inducement here right

with these lows here saying above it which is nice to see and it's still

fresh at this point so i'm just going to zoom out and drag

this across

okay what i'll probably have to do is

uh

just place back forward again on the four hour till we get back there

so we start to react from four hour demand right we wick the low we start to

get the first initial sign that the reaction is going to fail then we get

the closure above it right then we pull back up into that front door refinement

and now we come down into that next demand zone but what we're looking at is

just refining this wick just to see if we potentially could have tried to catch

any potential high low that obviously could have formed at that point um

so let's open up the 15-minute chart again

and then drop down to the m1 i don't think it's

going to load for me is it there it is there we go

right now we got it across and that is where we can see right

refining that whole time that's why we get such an aggressive move away because

that is the origin of the movie it's got i don't think it's gonna load for me or

is it yeah there we go that's the origin of

the move on the m1 that took liquidity and fueled that move to the upside so

yeah this is definitely a good area that we can start to look for potential longs

right to take that long position to the upside but what you have to remember at

this point here oops keep going into the wrong zone is

we go on the four-hour chart

although we have refiners for our wick down to that in one zone right it's just

more of a kind of an exercise to show you why we've got such a violent

reaction but you have to read what's going on in the higher time frames and

this is what i was saying right understanding of flips putting all the

pieces of the puzzle together that that is the reaction that should go the

reaction has failed we then pull back up into that last point of supply so yes we

still could go from here and that's why longs can be worth taking but you just

have to understand why in this case it didn't work out and we ended up coming

even further and again this is where then we got that true sort of four hour

internal um break of the low right because this is our swing structure

this low here and this high here but then we take out this sort of more minor

low right that internal low we get that minor breaker structure to the up to the

downside that's kind of where that last flip happens price then comes down

and now we're pulling into this flip demand here so for me i would still be

looking to try and catch that four hour high low with long positions that do set

up but really i kind of want to see you know these four hour highs start to

break to really give me that indication that the four hour high low is going to

go and that we're not just kind of having short-term reactions just to

provide more liquidity for prices than pull down deeper into those zones down

there right so that's kind of my thought process we're coming into areas of value

i'll look for longs but really in terms of management and stuff right i want to

see these highs start to go this kind of last area where that last bit of

sort of flip happened i want to see price break that before i've really got

conviction that we're now going to start to gun for that high there okay

so jumping down to the 15 minute time frame um as price is coming down in

towards the zone here right what we can start to look for potential

entries shaping up so let's just refresh this a little bit and

try and get this so we can see it there we go so

price is tapping into our zone now i just want to see the kind of you know

some real solid bullish price action on the 15 minute chart still very much

bearish at this case right we don't have any sort of change of character right

now what we've started to do come into the london session as well

always be you know cognizant of session timing here london session is sort of

the ideal time to be looking for entries but we have these pretty much perfect

equal loads that formed price has now swept those equal lows so

which is really good i want to start to see those kind of changes of character

to the upside so again we're still very much bearish at this point

building more lows sweeping those lows all right bit a bit more on a smaller

case but we can see it there be obviously a bit clear on the five minute

chart but nonetheless that is still a decent equity liquidity sweep aggressive

reaction away

all right and then we start to break structure to the upside so what i'm

actually going to do is see all right if the one minute chart will

hopefully load for me how we could potentially see if that we can get a one

minute entry on this area so now you can see how much clearer that

support floor is right tons of liquidity will be building below there all right

just chopping around at this point building the clitty on either side of

the range that's when we get that sweep below the low so let's now pay attention

and see if we can see a one minute entry so price is pulling

back up we're now in that last kind of area of supply

let's see if the supply is going to hold

so we start to react remember the reaction is key all right so that kind

of validates that the supply zone is a decent supply zone we have now wicked

above it but for me we don't have that change of character until we get a break

of this high here all right but of course we do have that

failed reaction however it is just a wick break um i personally prefer to

kind of see um you know that candle closure above in most cases

so yeah we still haven't had that change of character

now we get the closure above so now we have that confirmed uh failed reaction

so you could start to look for entries but let's wait for that a plus set up

let's see if we can get that change of character as well right so you could

have potentially entered there um but we still don't oh we have got that

change of character now so at this point right this zone is already

mitigated right because it tapped into to cause that change of character so now

we can start to look at more of the extreme right um because we have

essentially this acting as inducement potentially for this price to come in

towards this zone which is the origin of the failed reaction and the origin of

that change of character and you know remember what we know about pandora is

it generally not always but it generally prefers to kind of come to those extreme

points um it can have reactions from more of the decisional but it prefers to

then use that as inducement right building liquidity to then come down to

that extreme so remember at this point when we did get that change of character

yes you could have been looking at here but for me it was already mitigated

right to cause that move so now this becomes potential liquidity for this

zone to play out or you know potentially we could be coming lower down to the

extreme here i like this as kind of just a standard structural entry because it

you know it was a nice sweep zone but there's no real kind of flip down here

for me and we haven't had that convincing of a break of structure just

yet it's more just a wick change of character on the m1 but in terms of this

price section here we've had that interaction of buyers and sellers we

have inducement what do we also do when that zone was created we took the

liquidity below that zone there right so we have a sweep zone we have inducement

we have a a failed reaction right we have a flip and we have a change of

character so that's how you can use kind of all of that confluence together to

give you you know good um indication that this is going to be a decent level

to trade from so of course we can enter anywhere within this range now

as you can see just covering below that's low there is a 1.5 pip stop which

in this case may look pretty safe but one thing you will probably find is

something that i definitely found out through the hardware with pound dollar

is i personally pretty much never go below three pips on pound dollar um

you'll find the average true range on this pair um if you don't know what

average free range is essentially it's just kind of a fancy phrase for how

many pips a day a pair typically tends to move that's just kind of what atr is

average to range so a pair like euro dollar if you go and kind of measure

each day you'll see compared to pound dollar that eurodollar moves a lot less

in terms of pips so what that means on here if we know that pandora tends to

move a lot more in pips each day is that actually 1.5 pip stop on here is going

to be like a 0.5 pip stop on eurodollar so for me personally i tend to never go

below 3 pips and yes at times it can be unnecessarily big but i found over a

large sample size of data that generally three pips is for me now

for you you don't have to follow that right if you find you're very accurate

and you can get away with smaller stops especially if you're a trader who always

enters on the eq as well then you know do what works for you but

you know i can only advise you guys kind of how what i have found and for me i

wouldn't go much lower than three pips it just tends to work a

lot better so let's see if this is going to work

out okay now we've got a pretty decent move away so here's a very good example

of where three pips can save you so in this case this was

as far as i'm concerned this was the wrong demand zone because demand failed

if it's the right demand zone price should never even wick the low right but

you don't always have to be perfectly right and giving you that little extra

bit of buffer can help you you know manage to sustain these trades and not

really affect your wrist toward too much um yeah and that's just kind of what i

have found works best for me and in this case that zone did end up being used for

liquidity and we've reacted to something in here which we can't see on the m1

time frame right but there will have been demand here on a lower time frame

in the seconds so i'm guessing right we had these buy to sell wicks there would

have been some five second demand there there was probably a flip here that then

led to that you know that five second break and then that's what price has

come down to mitigate but obviously you know i have no idea you know i'm not

gonna be sitting the five second time frame trying to find every single zone

um i'm just reading it on the m1 that's more than enough for me giving you that

three-pip buffer as well allows you to stay in trades like that where you end

up you know it ends up becoming a sweep but in my opinion this is still a very

very high probability trade right big sweeper liquidity we're in that four

hour zone um nice aggressive in and out which is what i want to see right we got

that failed reaction we got that change of character we have inducement with

equal lows we have inducement in the leg we swept liquidity to create the zone

that for me is all systems go to want to you know

risk my capital on a position like that to try and get um yeah that decent move

there so yeah that's kind of one way you could have looked to trade that um and

just yeah a good idea to give pound dollar a little bit of a buffer because

it does love to absolutely uh sweep liquidity now

um as we're starting to break up higher remember what i was saying yes there is

a possibility the four hour could be forming a high low and if you rna longs

i definitely would be looking to try and hold some volume to get that higher high

but one thing we have to be aware of is we are still in premium pricing right we

haven't come below that eq down below there so there is a possibility that we

could come down there but so far so good but really what i'd want to see is a

four-hour starter to kind of get those minor breaks of structure and break

those kind of last areas of supply because remember we had this point of

demand here price reacted and then pushed down we did mitigate some of that

supply but there could be enough supply left within those wicks pandora is

another player that loves to come up and mitigate um wix so really i want to see

price break that and because there is a possibility that this could just be used

as inducement um to react from here and come down lower but if we can break up

above here then i'd have a much more um yeah conviction that that's the high low

and then i'd be looking to hold on to the majority of my volume to try and

take out that high there so if we are within um you know trades and we're

gonna start to look for potential areas to either take profits or look for short

positions to hedge our long position so we can see already right these lows this

liquidity ends up being um used for inducement but all right excuse me we

start to sweep those highs there so a couple areas you can look at

obviously we've already reacted from this one we have that m15 zone there and

then we have the four hour wick which we can then refine to

for measle mitigated then we have this zone yeah so that would be the next zone

i would look at right

that's taken the liquidity behind this high here

all right it's mitigated that high the previous high and then we've got that

movement away so these are two pretty good zones um to be looking at in fact

let's see if the m1 will load for me and we can refine those zones even further

right these two zones over here so let's have a look

here so you can see this one's decent right took liquidity um flipped broke

the low so that would be a decent m1 refinement

or we can look up there and then over here very very clear one

right we've got this inside bar here uh nice inducement in front of it as well

with these highs here um really like how it's swept that liquidity that i've

already drawn on that was visible uh whoops

get rid of that double zone

uh here right so we took the liquidity of that high and then that ended up

going obviously inducement here as well um and here as well so really nice zone

there and then all of this is pretty much mitigated right we came in tap that

supply we've come down we swept liquidity right so that's the sweep zone

here prices then come down use that as inducement and it's mitigated this zone

then we've come down again mitigated this own right so we're just following

the money this is just a series of mitigations so this should be kind of

the you know the last point of supply that should hold if the four hour is

going to continue to pull back if we start to break these highs then the

higher low is in place and that's where we can hold with conviction up towards

potentially forming that swing higher high right so if we drag this across

right already got that initial reaction there and let's see if this will play

out over here so yeah um it's not really too clear of an

entry here there's definitely something there on a lower timeframe in a second

because you can see price comes in it reacts it pushes down we get the change

of character price then pulls back up into the area of supply right and then

we go away so there would have been a 15 second flip zone there um here's kind of

you're more of your clear m1 but we kind of pushed straight through so there's no

reaction for me that i'd really like um you know arguably it's not great because

we actually broke the load before before we reacted but potentially he's buy to

sell wicks there's demand there so we have a bit of demand we push down we get

that change of character it's not the cleanest so i wouldn't have had you know

massive high conviction with that one but what you could

potentially do is play the reaction so we come back into it we actually even

come into that fractal refinement there and then if i just bring it back this

will be a bit easier to show you bar by bar

potentially how you can uh look to play this

so yeah this really isn't a great setup um but it's kind of show you sometimes

you can trade the market a little bit ugly if you really like to narrow it it

was coming off for me it's not the best because there's an extreme above the

extreme is where i'd be happy to be a lot more aggressive the decisionals like

this m15 is decisional not so much but anyway let's have a look just so i can

show you kind of some sort of you know messier price section of how you can

read it so at this point whether you'd refine it to

the wick or the whole candle it doesn't massively matter what you're looking for

is the reaction right so now we have that bearish set off

now we kind of have that that bullish reaction again so it's showing that

demand has stepped in somewhere so this is where you have to kind of be you know

really if you're looking to just play a reaction of anyone's own you have to be

kind of really focusing on the details here and really diving in because what

you're doing is you're trying to read seconds the seconds time frames right

the lower time frame on the m1 so we've come up into supply we've reacted and

pulled back then we started to push up which means there must be demand here

right these sell to buy wicks so we're pushing up here so now what i would do

is i would mark that out as the low of my reaction right i would want to see

that reaction fail and as long as price doesn't take out

this high here right so what do we do

yeah we don't take out that high so it hasn't done its job

now we've got a closure below so then for me straight away i'm looking to get

short anywhere essentially whoops within this biter cell range here let's see how

big that is in terms of pips so three pip stops ideally what i'd want so what

you can do is move it until you get your three pips above the high there and then

let's see if we're gonna get tagged in or not and no idea can't remember how

this comes up just about get tagged in ideally hopefully you did with spreads

and then that would be a move there and then we take out that in one low so then

you know again we'll talk about management later but you're running over

6r so yeah ideally you want to take some partial profits cover your risk on your

trade um as obviously i believe this does end up pulling back up but

um let's just play this forward a little bit just for the sake of time because

i'm conscious this video's going on very long already but we know yeah that ends

up pulling back and then we come up to the extreme here so

one thing i'd say about this is if you are the type of trader who wants to be a

bit more hands off and just kind of use limit orders this is the type of zone

you want to do it right not so much from the decisional pay the reactions from

the decision all right that's what i'm saying at the start if you want to set

limit orders of course you can then take them from an extreme whether you want to

be very risk-averse have it above the four-hour high or if you're a bit more

happy and you have confidence in your refined zone right then you can take it

from here or you can get that phone call or um you can do is take the eq right

and then you can you know double your risk toward instantly but you of course

run the risk that you may not get tagged in

and in this case it ends up do we see does it play out or not

struggling around and then we start to break structure to the downside again

right and then the m15 switches bearish so at this point when you get the m15

switching and bearish again right and then you look at the four-hour

chart remember you've always got to try and take at least these two two time

frames together what has happened well we came into our uh supply to demand

flip zone we knew it was in premium pricing so it wasn't ideal but we looked

for that long entry because it's pro four hour and day and weekly trend and

there was a good possibility we could go on to run the highs but what did we have

we kind of had this last remnants of this flip zone here right the decisional

that truly caused that minor breaker structure over here right to actually

make the internal trend because the internal

train was bullish at the point that is where the internal trend then switched

bearish this high was unused for inducement

right you could kind of view that as one four-hour internal leg there we've come

up into those wicks we can look for potential entries to hedge our long

position right because we're still thinking that we could go from here but

then we get in some long positions and then once the m15 then took out that low

right and the m15 switch bearish for me what's happened is the four hour this

four hour internal low it's failed to even take up that high this low now is

toast right that low is you know you know i've got very very high

confidence that that low is going to go and this is where you don't really want

to be looking for longs from here right because it's a weak low you're trying to

get long from that weak internal low it's not ideal

and yeah price ends up running it right and we broke below that low so now what

do we have well we have this four hour low has now been taken

out right so we now have a reaction failure we have another

wait that's a dotted line dash line sorry

get rid of that drawings there we go so remember this is our demand we react we

fail to put in a higher high we come back down and we close below that

reaction at this point here right so now we have a failed reaction so this means

technically anywhere in this whole biocell range we have the supply that

caused that reaction to fail but obviously you want to be a little bit

more refined from that so of course you could take that whole bullish candle but

for me it's not great because you know i ideally prefer to see a candle that

closes below the low right which we don't get so you can refine it to here

but none of those candles close below the low and then you could refine it to

that candle there right um then that the candle gets swept so what

i was talking about is let me draw on so you guys can see exactly what i'm

talking about so you see how this candle here if you

take that whole that's valid as well that's more than valid but ideally i

prefer to see the candle close below it right

and then we can refine it a bit more to this candle here because this candle

does what it takes the liquidity behind this high

here and then it leads to that flip occurring so i really like that but it

is a bearish candle before a bearish candle so what can you do you can refine

that to the wick because it's likely there'll be the buy before the sell so

i'll be putting here for our liquidity

there we go that's the wrong one

no i think it was the right one anyway let's jump down to the 15 minute

time frame and see if we can refine that a bit more

so you can see here how clearly that price actually occurred right

so forgive me i'm jumping around a bit here but that was that trade there that

you could have taken right so we got in we looked initially for that long

ideally pay yourself on the way up then you take the head short you know i'd be

taking a fair amount of volume off around here in case

um you know that m15 does actually stay bullish and we do put in that high low

so again we can be looking for longs within here right sweep of liquidity

into our demand zone in here but then ultimately what does it do that's power

handle i love to do sweeps of liquidity mitigate it says bye to celebrate there

and then when then we run the low so when we run the low here if you have any

volume remaining on the trade that is when you can have confidence that this

weak four-hour low is going to go right and that's when you can end up getting

over 20 r on your remaining volume but here

this is why this is a decent for our zone now right it's taken the liquidity

and it's led to that move to the downside right essentially you have your

m15 flip as well reaction to demand failed reaction because it failed to

take out that high there so then anywhere within these buy to sell wicks

essentially is your supply that then took out those lows right

and then you can start to dig into the m15 time frame and look for price to you

know to look to trade those shorts but i'm not going to do that enough for now

just because this video is turning in very very long but i kind of just wanted

to just just to use this video on pound dollar just to you know bring in the

same simple concepts we've been using right looking for how to mark our swing

points how to look for where those flip zones are and then how to just refine

those even further by looking at the zones that have inducement in front of

them and the zones that you know took liquidity swept liquidity before they

are created so then we tap into there right and then we go now again this is

another point i really want to make you don't have to be super super refined

right you can keep things very very simple you can go okay you can literally

ignore everything i've been saying this whole time in terms of liquidity and

just go okay well we started to switch you know that bearish internal structure

on the 4-hour chart we're making those internal lower lows and lower highs i

know the four-hour chart could be putting that swing higher low in at any

point but i'm just gonna wait for the four-hour chart the four-hour internal

price action to start to switch bullish so you can look at these kind of larger

unrefined supply zones and you can literally just hit sell on the eq right

and you can be as hands-off and as simplified as you want there's no need

to get super super complicated i'm more just showing you

how you can start to bring in those refinements get more and more refined go

lower lower time frames try and because obviously the lower you go you're gonna

you know if you take this for our zone and you jump down to the m1 there's

going to be tons and tons of potential valid zones so that's why you have to

use all of your knowledge to try and refine it as much as possible if you're

going to try and take you know a two pip stop but you don't have to you can

literally this hands off look just to that low there

that's 5r do how many people would kill to have a five r trade you know that

hands off right as soon as we break that low set your order on the eq stop above

the high wait what eight hours eight twelve hours

to get tagged in and then another what's that

uh if we can get the tool to work uh there we go three three days sorry um

yeah and you've made five are right hands off approach you set your limit

order there you're tagged in you set take profit there or maybe you want to

push even further and you're gonna wait for the four four-hour internal

structure to switch bullish again before you go right so just kind of wanted to

really make that point you know some especially if you kind of just joined

and some of this is very very overwhelming because it definitely is it

can really take a while to grasp all of this

but in the meantime whilst you're learning

that and you're getting more experience you know don't let that put you off

um you know i've been showing you 1.5 pips up two pip stops here right i'm

you're going to see how possible it is all the time but it

you know this is i even you know i've spoken about this to a lot of you guys

in the community sometimes i have to drop my ego and

sometimes i ask myself you know when i look back on the week's price action and

go was it really worth kind of you know me

spending all that time in front of the charts where i could literally just see

the zone put my entry order in the eq yes it's a 14 pip stop drop my ego a

little bit get a nice trade burn there's 5r right because that is an unbelievable

return like it's very easy to get caught up in these massive 40 50 60 odd trades

but five six are there when you start to have that decent capital right that is a

ton of money you can make more than someone's annual salary in a western

country just with that trade alone there and it's so

so simple just understanding what's going on here right we've come into

demand we tried to make a higher high we failed to make a higher high so we have

a failed reaction the bearish internal flow order flow is

commencing so we take this big unrefined four-hour zone enter in the eq stop

above the high you know partial or full take profit

there boom you can make you know 6r on a million pound account

yeah do the math on that it's insane 60 grand just like that right and you'll

see these entries occurring again and again again when you have confidence and

marking out your structure understanding all the flow and understanding these

reactions of what is going on anyway i don't want to rant on too much but say

what we'll do we'll just kind of bring the four hour and 15 minute chart kind

of nearer to to to today's price action so let's say you're short regardless of

whether you've got in the four hour or the 15 minute blah blah blah blah

doesn't really matter we've now made a lower low let's start to look at areas

where potentially we can start to you know guess where not guess but

anticipate where you know that that four hour uh swing low may start to form so

really like this kind of this four hour extreme zone down here and then we kind

of have this four hour range here that price is approaching so what i'll do

is i'll jump down to the 15-minute chart to start to refine this and let's see

what we can find uh down here so what i'm looking for

really is those m15 zones that took liquidity and have a juice one in front

of it so i like this right it took that low there all right swept it but when

the zone was created right it made that high high it came back in and it's been

mitigated so that zone's already gone so i'm not too interested in this this is

another one i like right it took liquidity made the higher high but it's

being mitigated right price came back in and it went so we would have ideally

have already traded from that back in july then again what do we have here we

have a sweep of liquidity get that higher high and it's not mitigated so

boom straight away i know that that is a potential zone i'm going to be

interested in to at minimum play that pullback or ideally try and catch that

higher low um

what else do we have here this one didn't really take liquidity

right it's just a mitigation because we have demand here right but it didn't

sweep any liquidity right this kind of just induced my way above kind of want

to see it nearer down right we just come down mitigated it and carried on so

that's not really that high probability of a zone for me of course you can mark

these on and look you know drag them across and see if you get a reaction but

you know i'm you will honestly find the ones that take liquidity and do that

they are the ones that have the strongest um

uh reaction so that's the old demand for our zone that we were looking

at before so this is where the new reaction came in and what do we have

here so we're going to rain that even even more just so you guys can see it so

obviously that was the last mitigation and then we moved away here so we follow

the money what do we have we have these relatively

equal lows here even if you just draw that low there right which mitigated

this demand there price has now swept it and then we're off

so let me draw that on

there's your m15 liquidity sweep now you can take the whole candle but it's a

bullish counter right and obviously the body is being mitigated so this is

definitely one where i'll then take that fractal refinement there on the wick so

what we can do is we have now refined that extreme for our zone to an m15 zone

and we have this zone here to potentially look for a reaction and

remember we go on the daily chart for a second

zoom all the way in all right remember we're coming off this

sweep zone here we had that moving away we got that internal daily high high

we're pulling back and we're trying to catch that daily internal high low to

try and get potentially that daily and weekly higher high so what we also have

is you know we can draw this on right it's a daily minor zone because it took

out a daily minor high right this demand zone here and then what we have done on

the four-hour chart is we just refined that massive daily

zone down to that four hour wick there so i'm going to leave that there and

just delete this daily zone for now so we have an m15 zone that we've we've

refined to within here and one within here and that would be kind of the the

major areas that i'd be looking at for potentially price to start reversing

from and i drag those way too far across that's going to hurt my chart ocd so

let's see and even if you don't right have these

super vine zones on you've just taken that whole four hour range what do you

do you just wait for structure to start to show you that it wants to switch

bullish right you don't have to be super refined i'm just showing you the

possibilities of how you can start to do this right

so let's see if the m15 is going to switch bullish or this zone is just

going to completely get disrespected so you can see here as well whenever you

see price ranging around a lot of times it can be see asian session right this

is the start of the asian session just after spread hours so it's very you know

unlikely you're going to see trading opportunities here on a pair like pound

dollar so we start to break stretches the upside what time is this now

so still the asian session so i wouldn't be looking to trade this personally

all right six 6 30. so now we're coming into sort of

the time 7 a.m right frankfurt open and that's why we're starting to see these

aggressive moves away so what do we have we have actually kind of your first

really aggressive change of character right that's the inside bar so for me

that is a minor high so the m15 we've had that

that chalk we've also kind of had that minor highest there a lot of kind of

volume starting to come in right we had that higher high we have the mitigation

of this inside bar right nice big wick right that shows sort of that big money

starting to step in so let's jump down to the m1

see if we can look for potential entries here to try

to catch that lower low so we've swept all of this liquidity we've mitigated

around this area here we haven't quite come into that zone but we've had a shot

moving away so what i would want to see is that m1 change of character let's see

if we can take out this high here it's going to rain this end

see what happens so we are clearly reacting to supply

so let's draw these on with our proper colors

there's your m1 all right so we're reacting to supply so

you know technically that was your first initial reaction right but we never got

a closure above it so personally i want to see that closure

above and ideally that change of character as well

now we have that failed reaction now we have that clear change of character and

we're really starting uh to move away so let's take a look at this inside bar

here now why is this a decent inside bar it led to the origin of that reaction

failing we know pandola likes the extremes

it so reaction failed we've got that flip occurring it also caused the change

of character we have inducement here right ideally just above it as well

which is perfect and what also do you notice when it formed it took liquidity

right we have that liquidity suite there so there's your own one the clitty sweep

happy days to look for an entry on this it looks like quite a big zone let's see

three pips is generally what i try and go for one pound

so what i would then do is just make sure three pips is below the low and

then let's see hopefully if we can get tagged into the trade or not

it may miss me let's see so just building more

liquidity and then we're tagged in

and then we go and we go on to make higher highs

so yeah that's one way we could look to then capture this trade so let's hop up

to the 50 minute chart and see if we can start to break

structure to the upside so really want to see it's probably

start to kind of make those higher highs and really start to sustain that move

okay we've got that higher high we've come into demand again there's probably

likely more trade entries within here but i'm not going to look for them let's

see if we can continue to make higher highs now we've got that break of the

low right we started to switch bearish again

you know another thing as well they have to bear in mind is this is not a great

sign of a swing low right you see how it's performing very very poorly so i'd

be a bit cautious at the stage but we are continuing to make higher highs

starting to react from supply here and then let's see what happens

right and then we sweep all that liquidity and we come lower so of course

if you got in here with you know three pip stop

roughly peaked at 50 pips or 40 pips or so so

there's some decent art to take advantage of right definitely pay

yourself along the way um but yeah it would have been more than valid to try

and hold on to that and try and get that high high so now we've broken below

those lows so now i'll be all eyes really i'm seeing um price coming down

towards this extreme here so let's pay this forward

and see what happens as we come down towards these lows

so we're starting to react a little bit we're starting to build liquidity as we

come into the four-hour zone now what i'll say right is when you have these

kind of refinements that you make and you find you know this nice perfect

refined zone price does not have to come down in here to form that higher low

right so the reason why we use refinements is just to give us more

confirmation and more confidence so what i mean by that is let's say price comes

into here right in the four hour zone hits the eq but misses this zone here

but it does everything we need to see it starts breaking stretches upside giving

us flips giving us all our entries but you can go well it never touched my zone

so i i don't think it's really i think it's a fake move

yes you could be right but a little not well sometimes it won't be in it and it

will go and then you've missed the move but the way that i personally use these

refine zones is that when price comes into here because i have a lot of

confidence in the zone this means that i'm happy to take that first m1 change

of character or you know potentially even a 15 second setup right

because you know i see this as the last point of demand that has to hold so that

means i can be a lot more aggressive but if price comes into here it switch

liquidity and we start getting changes of character to the upside i'm happy to

get long but i've kind of waited for a little bit more confluence in terms of

i'm waiting for the m15 to switch bullish rather than just the minute we

come into the four-hour zone i'm looking for that first m1 change of character

because that's why you can take very early losses right because most likely

you would have been looking at the zone there right because it took liquidity

move them there that would have looked very decent on the m1 and you've taken

an early loss because generally that first m1 move from a hard time frame

zone isn't going to be the zone that goes right because

price needs to come in deeper you know fill more orders build more liquidity

right for prices and sweep and go so again just to make that kind of super

simple i'll have this higher time frame zone that i like whoops and if i start

to get you know the m15 changes in character and whatnot then i'm happy to

look for entries but what the refine zone helps me do is once price enters

here on the m1 i'm happy to get very very aggressive and then start to look

to get in okay so we're still kind of staying bearish

building more liquidity right nice perfect sort of equal lows here

let's see if we can get that kind of okay see aggressive in and out now right

there's literally no questions that big money has stepped in

we have that sweep of liquidity right this liquidity took uh this stone took

liquidity caused a change of characters this will be the last little thing we

look at we'll start to wrap things up here

now what we also have it also took the liquidity here right just again and

again and again and we have our change of character nice decent break of

structure so let's look on the m1 and see if we can look for a refined entry

so anywhere within this blue box i'm now more than happy to take an m1 entry

right so let's see what are we doing we're

just building more liquidity

right although these lows here stacking inducement in front of our zone

which is what i'd like to see okay price has come into our zone

okay we're still bearish okay now we have that change of

character so this way you start to can really investigate price now what has

happened well we've had this big sweep of the lows we've come into our m15

demand zone we've swept liquidity here

right so we now have a potential sweep zone

it's not the cleanest but we did have supply here price came into it it did

yes spike lower which you know is a decent sign that supply held but we

never got a closure below so for me it's it's a flip it's just not the best flip

right because it did spike clear but it didn't close below and then we got that

aggressive movement up so now for me that's definite and very clear um you

know and one change of character i like you know how aggressive that move is so

now what we can look at is this inside bar obviously you can take the entire

range right or you can refine it a little bit more to that inside bar or

you could even take the wick but what you have to accept is you may miss the

move the more refined that you go so let's see how big this is three pips

generally kind of what i want to do cover the low there and then let's see

if i'll get tagged in or not

so what we're doing building more equal lows here

and then we get tagged in so right so you could have been more refined because

eventually price did come down i believe did it take the work yeah just about

took that unrefined wick right oh sorry not unrefined but actual refined wick

the bit that hadn't been targeted the unfilled orders that swept pound dollar

loves extreme and this is why right you might be the type of trader if you

really focus on eu don't you know you can get away with less than three pips

you don't have to do what exactly what i say it's more just me you know giving

giving you guys advice of just what i've found works for me you know over a large

sample size of trades right don't just see one trade play out like this and go

okay i'm always gonna enter on the wick and i'm always gonna have a 1.5 pip stop

you need to collect as many case studies as you can and then you know look at the

large sample size as a whole the law of large numbers right what gives me the

best edge over time okay um so what i'm gonna do is gonna you know for this for

the purposes of just showing you kind of more

reflection of how i would personally trade bit more unrefined right

would have been tagged in more like that right and then um yeah we're off i mean

even if you weren't sure this level right there's probably confirmation

entries within here what do we have we have last areas of supply we react we

push up right we get the failed reaction we come back in and there you go now

you've played the confirmation of that zone holding so you just waited again

for a bit more and then you know confirmation and you could have got in

with a refined entry there so appreciate it again that's very very messy drawing

but you can see here and this will be cleaned up if you have the second time

frame as well but we come into supply we react right that's your reaction we

break up above it we don't quite get a change of character

so this is the more aggressive starts right actually no we do ignore me

because that's the inside bar right so we pull back

we calm down we get a change of character right we react from that

fractal supply there then we get the failed reaction here and then anywhere

within here you can buy right on that demand on that doji and then boom that's

how you confirmed this area here if you just wanted to wait for a little bit

more confirmation so that pretty much wraps it up in terms

of kind of everything i wanted to cover hopefully you guys can see yeah just

kind of how pound dollar is a little bit i'm hesitant to use the word tricky

because i don't want to put you guys off because pound dollar is an extremely

rewarding pair when you master it and when you nail it because when this pair

goes it absolutely goes it flies and if you can

get into the three pip stop right this will can move hundreds and hundreds of

pips within just a few days and you can make serious r and you can yeah just

where you get those quantum leaps in your account growth um but of course

just make sure you you really get used to it first you understand how it likes

to sweep liquidity and you get very very comfortable with it first and you

understand the differences between a pair like this and a pair like you're a

dollar which isn't as sweepy it's not as sort of you

know doesn't like to manipulate as much and

eurodolly can get away with a lot more um with the decisionals there so what

i'll just do is in fact if i just kind of

get rid of all of this and put it to the current price action and if you just

look at from where that move kicked off if i refresh the charts

all right so that's how we were looking at getting in the move down here and you

can just see how much pound dollar loves to sweep liquidity right because we go

up we have a minor pullback we make that minor high and what does it do it comes

down to sweep those lows to then fuel the move and go pulls back right takes

the high then what does it do it sweeps all of these equal lows to then go up

above then what happens price comes back it sweeps these equal lows right to then

fuel the move to the upside price pulls back makes the higher high right leaves

all these equal lows here sweeps the lows and then we go right

it does and even on a fractal refinement what does it do pulls back makes it

higher high comes bound to sweep that low there and then we go it just does it

again and again and again and it just loves to

manipulate right come down tries to make the higher

higher right takes a higher there you think it's going to come in for the

higher low but what does it do it sweeps those equal lows that just built and

then it fuels the move to go right again and again and again and again so this is

why you have to really kind of understand um you know how much it loves

to sweep liquidity and when you do see that sweep that's when you can trade

them with confidence um so when we come down here right and you start to see

these movements here back into demand and we're off right and then we can go

um so yeah just get comfortable with it um and yeah it can be a very very very

rewarding trade um you know when you start to master it

um yeah i think that's pretty much everything i want to cover so yeah dive

into it study it like i said when you first kind of keep it into things don't

just do buy replay and try and play price forward because you'll get quite

confused i will talk about this in a lot more depth than a testing module but

just for now just go and focus on these big turning points in the market these

big swing points and that is where you'll see there's kind of more

clear-cut opportunities there's higher probability ones um yeah that we wish to

focus on so i'll leave that there appreciate this is quite a long video

but hopefully you guys took some value from it so as always i will see you in

the next one