All language subtitles for 2. Liquidity (Walkthrough EURUSD)

all right so we've now looked obviously at the theoretical side of things right

we've looked at you know those nice fancy diagrams in the previous lesson

but as always let's actually try and put that you know theory into practice and

look at the real world price action examples and real world sort of trade

examples to actually see how we can use that theory

well to actually make some money right so

hey hopping onto euro dollar you know the pair that we've obviously been using

for the majority of these examples if you've been following along and drawing

uh charts hopefully you will have uh some similar structure uh laid out so

yeah i guess let's just you know look at some random bits on the weekly chart and

just start to kind of loosely look at what really is going on um yeah with

those liquidity concepts that we've been looking at so for instance we've had

this clear bearish trend back in 2015 on euro dollar

price then pulled out back to this kind of minor area of

supply right that took out that minor low and it's starting to kind of

range around have that battle between buyers and sellers so

as buyers are kind of struggling to push price higher up above that sort of minor

supply zone i'm starting to see sellers step in right pushing price down what do

you think is happening tons of orders starting to build up

above these highs right because anyone who is short what are they going to be

doing they're going to be selling but a lot of them are going to be having their

stop losses sitting just above these highs here right so if you're short and

you have a stop loss that stop loss is going to be a buy order right because

you have to buy back your position when your short position is stopped out

right so there's going to be tons of buy stops from anyone who's been selling

starting to collect above these highs and then also

breakout traders what they may see is that this is starting to become quite a

strong you know resistance level as they view it and they would think okay if

price breaks up above this resistance level then that's a very very bullish

sign and they want to get taken into the trade rights they'd have their buy

stop order here as well and they'd be aiming for price and then take them up

and into profit so as price is doing this over a number of weeks we just have

a ton of liquidity starting to build up essentially just money right it's just

orders sitting there waiting for price to eventually tap into it then what

happens price runs those highs grabs all of that liquidity and all it does is it

sweeps it and it fuels the move to then try and come down lower so

one thing again another point i want to make very clear is there will always be

liquidity building up in the market and all of these points right it will be

there uh and you know it will likely have a

reaction a sweep and it will either be a reversal or a pullback once price taps

into it but we never know when

price will essentially uh tap into that liquidity right so that's why you know

structure um is always king and this is why we're looking at liquidity last

because we understand it we understand what's happening when price taps into it

but we never kind of assume or wait for that to happen first

we always react right we don't predict so price grabs all that liquidity that

was building up behind those highs and it ends up using it to retrace as big

money steps back in to push price to close back below those highs there and

then what do we do we come down and we take out all of this liquidity this

trendline liquidity that was building up between these ascending uh lows here

right as they were getting higher and higher anyone who's buying right buying

these ascending highs they'll be building tons of liquidity below these

lows here right for price then tap into so price comes into it it ends up

sweeping it right it respects a minor demand in here so then it fails to take

out that major swing low so we pull back up right building some nice trend line

with liquidity again we come into supply it tries to hold right it tries to push

down it fails to do so we have another attempt here right we come into more of

that wick we try to push down again so just like before what's happening

starting to build this sort of resistance level right all of these

highs here so as that's happening there's tons of liquidity in this area

there's tons of liquidity below this trend line right so anyone who's getting

long all of their sales stops are below here or breakout traders trying to sell

the break out of this trend line um anyone who's short up here a lot of

their sell orders they're buy stop orders

right their stop losses are gonna be buy

supporters they're collecting up here anyone who's trying to buy the breakout

also buy supporters so then what happens price grabs that liquidity big money

then steps in to fuel that move down and then it grabs the liquidity below the

trend line right which then initiates another pullback back into supply and

then the exact same thing happens again and again and again so every time you

get price essentially tapping into liquidity it is either going to produce

a form reversal or it's just enough right to just uh produce that pullback

back into supply supply cylinder control and then eventually we go

now the swing highs are swing lows right there's uh

essentially the external sides of the range right because price was in this

larger weekly range all the way up here right or whether you're kind of you know

looking at this range here on the external side of these ranges

behind those swing lows and swing highs there's also obviously going to be a ton

of liquidity so that's why we've been saying since pretty much the very first

basic market structure lesson that when we get that break of swing structure um

what do we expect we expect the pullback of course you know it's not always going

to happen instantly like it did here it can go a little bit further and then we

get the pullback but the reason why is because it's tapping into that external

range liquidity and what do we know every time we tap into liquidity we

either get a pullback or a full on reversal

so in this case it does end up leading to a full reversal as you know buyers

use that sell side liquidity to then fuel their move to push price back up to

the upside okay so let's just kind of yes have a look

and study what's going on in here a little bit more so

price is obviously pretty correct for a number of years coming down and then

what is happening that whole time we are building a huge amount of that trend

line liquidity right coming all the way down here

and pricing comes into this flip zone down here we have a bit of reaction what

does that reaction do that reaction then builds up that trend line liquidity

right trend line equity here we have that one touch second touch even you

know third touchdown of that bullish candle um

let's go to these lines a little bit what do we also have we also have these

equal highs building right here as price moves away starts to move away so then

what happens price breaks up grabs that liquidity there comes down takes out the

sell-side equities below that trend line takes out the external range liquidity

below that swing low right and then that's enough to fuel the move for

buyers then to step in and push price up higher sweeping all of the liquidity

that had built up or not all of it but the majority of the liquidity that built

up right behind that trend line behind all of these highs um you know behind

these relatively equal highs here and there's just literally liquidity

everywhere right so this is why it's you know a reasonably subjective sort of

concept and you know i don't sit here drawing on um you know annotating

liquidity everywhere because it is everywhere it's more just having key

understanding of what is happening every time

price you know breaks a high or breaks a low or breaks equal highs or equal lows

or a trend line and it starts to reverse we just use that as an extra little

additional concept or tool to you know bring into our analysis right

so you know there's no point in sitting here trying on every single bit of

liquidity because it's literally everywhere right but it's just kind of

understanding what happens when price taps into it why it then helps price to

do what it ends up doing right because obviously again it grabs liquidity above

these equal highs above the trend line then that's enough for

big sell orders to step in and use that buy side liquidity to then fuel that

move to the downside remember for every seller there needs to be buyers right

eventually then the supply overpowers demand what does it do it then takes the

external range liquidity below the swing low taps into demand and then we end up

right filling then that next move and reversal to the upside right

so on and so forth even here when we had that we've been talking about this price

section a lot right the weekly is in this bullish trend between these uh

swing low and the swing high price pulled back into demand it tried to then

make that higher high but then when it started to roll over right start to get

that bearish trend on lower time frames and we started to see that it failed to

take out that higher high instead what it had done is it just swept some minor

liquidity behind that minor height to the fuel that moved back down below the

range and at that point what do we know that this is likely to be a weak weekly

low it's still a pretty significant sort of internal swing low and we know that's

very likely price is going to want to come down and take out that low and tap

into the liquidity that had built below that low so just as literally we tap

below it what happens price retraces now we don't know for certain whether that's

going to lead to a full-on reversal and we are going to make a higher high or if

it's literally just a bit of a pullback to potentially sweep some of the

liquidity below this minor descending trend line here potentially tap in some

sudden liquidity there right then we've built even more relatively equal lows

here we have external lows there as well and then that could be tons of liquidity

for price to want to tap into get a bearish weekly trend change sweep all of

that liquidity to fuel a pullback right back into then that sweep zone that

would have taken out that trend line liquidity right created that supply that

then flipped to demand and then we can look for you know shorts in here to then

continue what may be a weekly bearish move all right so hopefully you can

start to see how you can piece together um essentially just what price is doing

is just constantly trying to rebound its price sequel there are orders to to yeah

rebalance that imbalance that is caused when either supply is overpowering

demand or demand is overpowering supply and we see those big shifts in price

action we then know that it's trying to you know seek liquidity to to to

rebalance that and get price back to uh fair value but remember fair value is

always a moving target because the minute it's at a fair value

you know the market's constantly changing there's constantly market

participants buying and selling and that those gold posts are constantly

moving right which is why price moves and it doesn't just stay flat for

eternity so that's the weekly chart let's jump down to the daily chart and

focus sort of more on the price action that we've really been studying um yeah

throughout these lessons thus far so let's actually take a look uh back

around here because this is kind of really uh sort of interesting price

action so daily chart obviously starts to switch a

bit bearish here right we start to take out these lows here we obviously sweep

that trend line liquidity that was building underneath we then pull back in

to this area of supply all right what do we have for this area of supply just

draw it on there in fact let me use the boxes just so it doesn't get too

confusing with all of these orange lines i'm uh

chucking about so it's obviously a little bit messy we

have a lot of wicks there with that daily supply zone you can have the whole

range you could have the pivot it doesn't massively matter for all intents

and purposes at this moment but more just understanding what's going on with

liquidity so we get that bearish trend change we

sweep this liquidity what do we know after we get super liquidity we're

either gonna get a pullback or a reversal it's likely to be a pullback in

this case because it's now pro the daily bearish trend so we start to pull back

all right as we start to pull back what are we doing we're building that

trendline liquidity for price to potentially target um for when it you

know has that next bearish leg but we're also doing what we're building

inducement right in front of our supply zone so anyone who's starting to sell

here and push price down there's going to be tons of uh buy side liquidity

right sitting above this high here we'll just kind of draw this on with the sort

of tool that i tend to use i just know there's a bit of liquidity

there so then what we're talking about earlier with that theory right the the

school of thought is that because there are going to be a

lot of buy-side liquidity above these highs is that big money wants to use

those buy orders to sell into so that when they start to kind of sell in this

area they don't want to instantly get slipped and you know get filled you know

all the way down here along along this level and get a really poor average

price they want there to be as many buy orders as possible in this area to sell

into so it can start to absorb sort of all of their orders before then price

starts to move okay so that's kind of the school of thought again i have no

real true idea or proof if that's actually what is happening but what

matters more is that uh if you go to test this you will see um that you know

it does definitely increase the increase the

probability of these zones playing out uh yeah when you see that so

you know even in the actual leg here this high here because it's quite a

clean push right remember what i said about clean pushes is typically if

there's no inducement in the leg not always but typically price will spike

those highs and push up a little bit higher and tap into the supply behind it

and then we will go and that's what happens here right you can see if i draw

that line across it just taps above it taps into the remaining supply within

that wick so this high here was then used as inducement for the you know the

fractal supply above we've also used this as well now we've got uh liquidity

to target and now we can try and target the external range liquidity below that

swing low there then when price will obviously break the low we'll get one or

two things we'll either get a pullback or we'll get a full-on reversal okay

so let's pay this forward a couple of days and see what happens as we come

below that swing low so already you know we're starting to react but we haven't

taken out the low but that's because buyers are starting to step in around

here and try and buy that potential double bottom and boom look at that nice

big reaction so anyone who was looking to get long around here right but they

weren't sure now they've got massive confirmation so now they're really

really happy right to get long loads of buyers are going to be stepping in here

because what are they seeing you know first thing you learn on youtube any

type of technical analysis nice horizontal support level must be

really really strong price is starting to move away and then let's see what

happens the next day if i can get price to pay forward

boom there we go so happens in one candle so it's obviously a little bit

subtle but if we look at the shape of this candle what does it tell us about

the price action that happened as that candle was formed right in that day

intraday so we were up here on the 3rd of november and then going into the 4th

of november what happened price moved down right

it swept those equal lows tapped into all of that external range liquidity

below that spring low there and then within that same day aggressively

retrace back up to then finish the day back up here right so all that has done

again really simple it's just come down it swept all that buy side liquidity big

money has then stepped in right against all of those um sorry sell side

liquidity below these lows big money has been stepped in to use those sell orders

right to facilitate their buy orders and then eventually that is massively

overpowered demand and then we have closed back up here now generally when

you see that when you see a sweep of equal those like that it's going to

facilitate either a pullback or potentially a strong reversal right so

this is where you have to pair like always we can't just use any tools on

their own right we need to pair them with all the tools that we've got to to

kind of give us that knowledge we're really anticipating price and then break

up to the upside or if it's just gonna be a pullback to come into supply to

then potentially you know just form another lower high and roll over

okay so um yeah just pay this forward and obviously

we now know um that price then doesn't go on to fuel and break that weekly high

right because it was just a weekly pullback and this is what you'll often

see right on one time frames for the next so obviously from a weekly chart

perspective we had that break of this structure here we're expecting a weekly

pullback obviously to facilitate that pullback generally the daily will either

switch bearish or at least get a change of character to facilitate that pullback

and then eventually that will change character again right and then that will

be in line to confirm that the weekly higher low is now in place and we're

ready for that next weekly uh breaker structure to the upside now what you

will often see is when the daily chart for instance is pulling back and we're

expecting a weekly high low to form we can obviously have you know loads of

demand zones down here and that may be better priced in the discount that we

can expect the weekly to pull back to but this is one thing that you'll see

is what can often happen if momentum is strong and price doesn't always pull

back is it will build liquidity right so it will pull back

it will potentially build liquidity say in the form of equal lows like we have

here it will then sweep that liquidity and then that sweep of liquidity will be

enough to fuel the move to the upside rather than price needs to come all the

way back down to wherever you may have demand levels in that case right so

you'll see a sweep of liquidity just like that right so as we go along i'll

show you plenty of examples of where that will happen that's just another

little mini lesson to bear in mind of you know sometimes if you're waiting for

price to come back to a demand level and then it feels like i know we're kind of

just rejecting thin air there's not really much here you know maybe if we

investigate these these uh sell to buy wicks on a lower time frame there might

be something decent but generally on this time frame we're not really

rejecting anything significant but definitely not rejecting anything

significant on the weekly chart so what you'll often see happen is it will build

that liquidity that liquidity will then get swept and then when you see that

happen that's a very high probability scenario to then look for buys right if

you're looking for a weekly higher low that is right then you see that sweep

and now we can look to fuel that next move there to the upside okay

um i mean you know loads of retail patterns this is happening again again

there's something called a head and shoulders pattern where essentially you

have the left shoulder the head the right shoulder here we get the break of

the neckline then traders will either sell on the break out of that neckline

right or they'll look for the break and re-test back into that neckline

all right so tons of cell supporters will be building up right we get another

big equal highs here we then sweep these equal lows tap into that liquidity

run those equal highs there right anyone who sold the sort of you know this

retail pattern that then gets swept for the pullback but it's just to pull back

into that demand right with those sell to buy wicks pull back into here and

again that fuels a move to then run these highs again running starting with

trinity start to pull back it's the same thing again

and again and again so yeah sorry you're probably very bored in my voice saying

the exact same phrases but yeah it's just what happens right and we just need

to drill this into

um yeah our subconscious and then you probably remember the example that

um i posted the screenshot of in the previous

theory lesson right when when um the daily started to switch bearish so what

happened it came down into the daily low it started to have a bit of a reaction

right it started to build those equal lows so support resistance traders think

this is a strong support level they get long tons of cell supports start to

build below here pricing taps into that liquidity just to fuel the pool back

into that flip zone into our supply zone to then fuel the next move again right

even here you can see right support level building up right price

comes in it works away it's just building more liquidity for prices to

tap into and pull back right so we pull back into

our supply zone we are playing within that daily swing high and this daily

swing low here so obviously there's a lot of selling pressure price coming in

people trying to sell us push us down we even come up to here we almost have that

then triple top with this bearish candle so we know there's tons of buy stops

sitting above here price then grabs that liquidity right intraday it grabs it all

big bullish move but it closes the day back down here

so whenever you see that a big sweep of the highs right is pro the bearish trend

we want to be trading away from the sweep right we always want to trade away

from the sweep we don't want to see a sweep like that that bearish sweep and

then we don't want to start we do not want to then suddenly start to

buy into the sweep right because what that is is it's a very bearish sign at

that point it's grabbed all of that liquidity to fuel the next bearish move

so like here if you see these lows and then you see price sweep the low and

then retrace we want to trade away from the sweep right with price we don't want

to trade back into that sweep right you don't want to do that you want to trade

away from that price action that has happened okay

so that's that exact same thing equal highs building grab the liquidity

obviously have trend line liquidity here building right people buying the bounces

and what happens price taps into that liquidity right fuels it just for

another pullback we always generally get a pull back after a sweep of liquidity a

sweep of that external low pull back into here and then that is enough to

fuel the move to the downside right so on and so forth i mean even here right

trend line liquidity building up right people sell the bounce again on the

trend line another bounce right people sell that

price comes up taps into a liquidity that was building behind that descending

trend line there's obviously the liquidity behind this minor daily high

there as well grabs it and that's enough to fuel the move to the downside what do

we get after taking out the external range liquidity there it's enough to

fuel a pullback right so on and so forth another one here

really good example is if we take remember this is that week

weekly low that i'm just drawing from over here and we draw a horizontal line

across to this level here it's gonna put that on as my daily liquidity line

what happens price comes into it it tries to break the load but it

doesn't quite and it price starts to aggressively move away so what do people

start to think this is a really strong support level loads of people start to

get along here tons and tons of liquidity starts to build up below this

low right that wasn't already because obviously there would be still a lot

below this weekly low here this week weekly low but this is just going to

generate even more liquidity now price obviously then sweeps these lows

it's enough to generate a bit of a small pullback but now there's tons of

liquidity for price to target so then we see the sweep of the liquidity and then

that's finally obviously combined with tapping into all of the demand that is

within the zone as well from that initial sweep zone here which we know is

a really strong zone we now have this inducement in front of it massive

inducement so we have our big sweep zone we have huge inducement here we get a

sweep of that inducement liquidity to obviously target as well and then that's

what fuels that big aggressive move right and that is what is going on there

so hopefully you can start to see that now how we can combine those concepts

and that understanding um of you know yeah just why liquidity gets swept and

why it can lead to the fuel for the big moves now

see when we get this break of daily structure here we're obviously bearish

and then we start to get a pullback yes we can still trade this of course we

don't have to go uh-oh you know there's a there's a double bottom here um i'm

just going to sit on my hands and wait for that sweep of course you can do that

and that may give you potentially a higher strike rate but

like i said right react don't predict if you start to see really nice lower time

frame confirmations within here and you want to start to play that daily

pullback you can do it you just have to manage your expectations

and understand why this then happens right so now you

have that it just brings your kind of you know your your comprehensive

understanding of what is going on in the market just that

that next level it is not a strict requirement to to understand this and

kind of you know be drawing this on your charts and this is why you know i try to

make a big song and dance about it of make sure you get market structure

nailed first right just make sure you completely get that then introduce

supply and demand into it and then just those two concepts alone will give you

everything you need to be you know highly consistently profitable

bringing in liquidity concepts is just bringing in that you know as we say that

little bit of icing on the cake just to kind of fine-tune things a little bit

more or just to kind of make your understanding a little bit more complete

but if you suddenly start to see this move away yes at that point you can go

this is pretty you know suspect especially as we didn't even pip that

low right we retraced before it it's very very likely at this point that

price is going to want to come down to sweep it but

you will find sometimes as well where it doesn't do that and then price does go

away and then you're going to be kicking yourself thinking why didn't i get long

in here you know there's plenty opportunities to make money okay so just

something that you're going to have to you know see what makes sense to you for

your own training in your own plan if you see equal lows behind you and you

don't want to get long of course that's fine you can't wait for the sweep but

you just have to accept first that potentially you may

miss out on a lot of moves where it does form those equal lows but then price

goes on right and it goes on for a long long time and then you've missed out on

that and eventually price may then come back down to sweep them at a much later

date because remember what i was saying earlier is you know liquidity will be

there and when price gets there it will sweep it but we never know if and when

that will happen okay so that's why we react to it happening and we don't

necessarily try and anticipate it too much okay

so let's do the daily chart let's quickly jump down to the four-hour chart

and yeah just take a look at um a few more things so

actually this is this kind of uh bullish trending price action is quite a good

example of that sort of little mini lesson i was saying earlier whereby

you're always waiting right for price to so i just draw this bullish trend come

down to you know our nice origin demand zones but in a strong bullish market

right where it's quite impulsive price isn't pulling all the way back then you

know you're always going to kind of be left sitting there you know scratching

ahead of going why am i getting tagged in so what is one way we can use to

give us a bit more confidence that actually when price is pulling back and

we have our zone down here yes we can look to buy here um but what can we look

for to give us confidence that we can buy a little bit higher well price can

come down it will start to generally build liquidity something like this

right people will think that the high lows in place it will then come down it

will liquidate their positions right it will tap into that liquidity then we get

the sweep right we get the pull back in and then that's where we can buy with a

bit more confidence that we're ready to go and we're not going to use this

demand zone just yet okay so we look on the four-hour chart

and this is pretty good we do come back into the demand zone there then we get

another break of the high but what do we have we have demand zones all the way

down here so let me just zoom in let's take a look at this i appreciate these

charts are very very messy at the moment just because we have so many old

drawings on but um yeah anyway so we get a movement up right we come

back down we do tap into liquidity just below that minor low there right so you

see that's enough to fuel that move but it wasn't enough to break that high so

what ends up happening is you build um these equal those here all right draw

them on uh for our liquidity there we go nice

fancy little line there just to show you all right so we build those equal lows

and what happens price then comes back to pick up more fuel for the move and

then obviously that what that you know theoretical concept would be is that big

money knows there's going to be sell loads of sale stops below here so then

they can buy against that to try and uh reduce as much slippage so they can get

in at this price level as better as possible but obviously then there's

enough demand to other power supply and it fuels the move to break out to the

upside exact same thing right we pull back

we kind of build these relatively equal lows here we tap into liquidity below

that monologue which is enough to fuel and move back up but it's not enough to

actually break the trend in this case and then we build even more liquidity

below these lows here you see how there's kind of a mini double bottom

there on the four hour chart those two wicks it'd also be a bit more um

prominent on the lower time frames but definitely equal lows there what happens

then price comes back sweeps that liquidity right taps into it obviously

we have this daily demand zone as well so what do we have we have inducement in

front of our daily demand zone it's sweeps liquidity we now have these equal

highs to target right price then breaks those equal highs and it sweeps it to

fuel and move to the downside again right then what we do we build more

equals price comes down sweep those equals and it pulls back we have larger

equals here now with these kind of again remember it doesn't have to be perfectly

equals it can be relatively equal like that but we know there's going to be

cell stops building below there there's always building below there pricing

comes down sweeps the liquidity then actually taps into the four hour range

that we have nested within that daily zone picks up more orders from that

demand zone sweeps liquidity for the inducement we have all of this trend

line liquidity to target and more and then it ends up being enough to fuel

uh that move to the upside because remember the four-hour switch bearish

here but this was just a daily pullback and a strong bullish trend

so what's happening is the daily then is pulling back it's sweeping liquidity

picking up some more orders within the demand zone as well and then we have

those liquidity to target there to the upside right so on so forth we had that

nice flip zone there right supply turns to demands pricing comes back into that

demand all right starts to build liquidity on a

lower time frame and then sweeps that liquidity changes of character pulls

back into that demand zone right that would be a sweep zone on the lower time

frame and then we're off all right target these highs up here but obviously

tons of uh by side liquidity building up above

there for our chart here the exact same thing

again right what do we do we start to pull back we tap into the minor

liquidity below there which generates another pullback but it wasn't enough

fuel to break these highs here so we start to calm down again but this time

there must be some enough demand in that wick actually for price to go on and

take out that high there so what happens well we sweep those equal highs right

inducement just before our daily zone up here

that's enough liquidity to sweep back down and we have equal loads to target

so pricing takes out those equal lows before us which is bearish tap inside

liquidity obviously demand as well that's enough to fuel the move back up

into um before our supply zone right so we're taking the highs we've taken the

lows pulled back into our supply zone nice high poverty zone and then we're

off all right external range liquidity he generates

the pullback yay rdr right equal lows building here

take up those equal lows get the pool back after taking out the external range

equity right so on and so forth

yeah and then we start to you know build loads of liquidity down here i mean even

if we look at let's do a bit more kind of of a sort of specific trade example i

guess so right if you guys remember this daily zone down here right this origin

zone it was in fact actually a flip zone

because we had this minor daily supply zone right that took out that minor low

so we have that inside bar price pulled back into it it tried to push lower and

then demand stepped in and we had our daily flip zone but you know it didn't

get used straight away so what do we know we know it's still valid and in

when price comes back to it the price is in a bearish trend approaching previous

demand zones what do we know they can obviously either produce a film reversal

but more likely right it's just going to be used for a potential pullback um yeah

for that move there so if we look at when price first comes into this daily

zone was it around the 7th of july so let's just bring

price back to uh around um yeah just as we kind of tap into it so

if it will load come on into that there we go

so here we go so price is coming down i've

seen a strong daily and four hour bearish trend and we tap into our daily

zone what happened before price tapped into that daily zone you see how it

built those equal lows right price started to move away what was it doing

it's just building inducement for price then sweep tap into that demand so then

big money can potentially step in to either facilitate a pullback or

potentially a reversal either all right so what we can use is we can use that as

confluence uh to increase the probability of playing those counter

trend longs playing that pull pullback or potential reversal so

let's jump down to the 15 minute and see what price action was going on to see if

we can get kind of you know those lower time frame confirmations to help us

uh with potentially playing that pullback so you can see these big lows

here all these lows building up nice big sweepers lows tap into daily demand now

this point obviously it's very counter trend and there's a lot of bearish

pressure so what can we do we can wait for a change of character well this

one's a bit subtle but you see this candle here you see how it didn't break

this candle's low so what that means is price pulled back

it pulled up and then it took the low so there's a very minor low there which

means that this is actually a high so soon um

or if and when we get a break of that high that for me would be a change of

character okay so now we have the m15 changing character the m15 is still

bearish for me right because that would have been the low

then yeah that would be the highest point so this for me is the high that

would need to go for the m15 to actually switch

uh bullish trend change but for now we've just had that change of character

right so it's that first sign of a higher high that we may be starting to

initiate that pullback and anticipate that m15 trend change we also take out

this kind of more prominent minor high as well so that's a pretty good sign

right we've taken out two levels now so now that we have our m15 change of

character where could we look to potentially get along well we have the

syllable for the buy or we can obviously refine it to the next candle that

actually gets engulfed right so that's one valid way of doing it or if you want

even more refinement and if you are super super strict and

how you define your supply and demand zones well for a demand zone technically

it should be drawn on the last cell before the buy and what we've drawn it

on is the buy before the buy right so for me this is valid it works but what

you can do is you can then refine it to the wick because it's very likely that

there will be a obviously a bearish count on a lower time frame that then

led to that move okay so we've had our m15 change of character

we should draw it on there and now let's see if price pulls back

into our m15 demando to potentially look for

long plays to play that uh four hour pullback

so obviously for price to come back to them towards the stone what did they

have to do i had to change character again and kind of switch bearish which

you know it's not the best of sign if we want to be getting long so what we can

do is wait for price to come into our demand and then change character again

and switch bullish again okay so price is staying bearish now even if

you had right the zone on refine like that yes

we are tapping in but we never actually get a change of character to the upside

again so even if you have a more unrefined zone you can still wait for

price to change character okay we can start to see orders potentially filling

up all right i mean like it's a bit more

subtle but it's happening still as you kind of have this trend

line liquidity people expect the third touch to then have that bounce right it

would also be a bit more prominent on the on the minute timeframes of the

lower timeframes and then that is definitely counts as a sweep of

liquidity then that fuels the mood for a bit of a

pullback that m15 minus supply is trying to hold and then let's see

so now right we have that change of character

so prices switch bullish again

if i just draw on that m15 chuck there we go so now okay this is

pretty good sign and it's time to buy because we had that initial change of

character there we created some minor demand prices come back into our demand

right we can refine it we swept liquidity so we have inducement before

our demand zone and then we've had another change of character gain so

we're back in line with a bullish trend so now i'm pretty confident that this

lower is going to hold and we can try and play at minimum or pull back up

towards potentially this m15 supply zone but we can try and anticipate that that

m15 uh trend is going to change right and we are going to break out uh we are

going to take out the high and break out the upside to facilitate that steeper

for our pullback up into the four-hour premium up into potentially for our

supply right and potentially beyond so at this point obviously we don't just

want to buy straight away as soon as we get changed character we want to wait

for price to pull back to value and into a demand zone so at this point what

demand zone could you be looking at because

if i draw some on right all of these are kind of valid you could look at this

inside bar that could potentially be one you could look at this sell before the

buy down here you could be looking or maybe at the

origin right so which one do you think is most likely going to

um you know price is going to pull back to you and

have the highest probability of reversing and forming a higher low well

all of these are pretty much valid and you could you know have all three on

but what we're actually going to do is dig into the detail and see what zone

actually makes most sense and see what is going on here so if we actually look

at where potentially a flip occurred because that's obviously one way we can

use to increase our probability so we have the buy before the cell i took out

that minor low right that last point of supply and we can see that price came

into here into the candle

it reacted right and then what did we do we took out that failed reaction there

but that never led to the change of character but what i will say is if at

this point you were watching this live right and you didn't wait up until if

you know this this clear kind of bullish move and you saw price take out that

failed reaction and then close up above here yes that is more than valid it's

right then to get to get along here on that demand that caused the failed

reaction right obviously it's more aggressive because you do not have a

change of character at that point but yeah just want to point out that that is

definitely a valid trade so let's say you wait for the change of character

like we've done here pricing comes up it doesn't change

character it pulls back it then mitigates this area of demand right and

then that is what then fuels the move to actually get the change of character

so for me that is a much more higher policy zone because it's mitigated where

that kind of first file reaction happens but then it's where actually the demand

actually stepped in to cause that change of character right

also this is where it's a lot more subtle

but it actually took liquidity of these sell to buy a wick so obviously on a

lower time frame that would be a bit more of a prominent low and what

happened is price came down it swept that low it mitigated demand and it led

to the change of character so this for me is a pretty decent zone

obviously price then tap back in if you unrefine it back into the body to then

fuel this move here but there will still possibly be demand within this wick so

then what do we have we have even more inducement with these lows here

right it's subtle but it definitely counts and this does improve um the

probability of those zones we then obviously took the liquidity below that

cell to buy wick there right so you can see that we now have a sweep zone we

have inducement above it and this is the zone that mitigated right it's just the

last bit of mitigation so if we're following the order flow this is kind of

the last fresh zone and it's what led to the change of character now this zone

here is still valid why because you know you could have a bit more unrefined

excuse me where you take the entire range

let's draw that to the high right and yes technically price did pull into that

range move down and go but when you compare that to all the confluence

that's sitting with this zone that we've just gone

through you know for me that is a much higher probability zone if you want to

take that so if we play price forward now you can see for those reasons right

because that is where the flip occurred but then price came back in mitigated it

swept the cell to buy liquidity that then fueled the move to actually lead to

the change of character price did come back in and me to get the orders if you

drew the zone from the body but then what we can do is obviously then refine

it to the wick that move then then produces inducement

into the sweep zone and boom that's why you see the orders filled away now

i do want to make one other crystal clear point here is this is again why

you know i've made such a big song and dance about this before talking about

liquidity when we start to dig into these lessons is this is very very very

subtle fine-tuning that you were doing to just

kind of help you you know really bring your training to that next level but it

is not necessary it is not required okay it's very very subtle sort of nuanced

differences a lot of the time but it's just trying to you know give you that

complete understanding of what is going on and can help you to try and pick the

right pois right the right demand of supply zones the right areas of value

that you may want to be looking at trading in and just give you a bit more

confidence if you want to be the trader right that then trades on these m15

zones and you may have multiple zones and you're not sure which one to pick

right obviously ideally we always want to be getting near the origin because

we're in the best value and then if we're wrong we're wrong and we're

stopped out um but this can be how you have a lot more confidence of picking

ones that are slightly higher up in the leg right look for the ones that cause

the flip that caused the change of character that took liquidity when they

were created and then that have inducement in front of it to induce

sellers right all the sell stops below those lows for them the big money to buy

into okay let's get rid of those drawings there

and then put this back here so let's have a nice to pip stop so at this point

what do we have well if we jump back up to the four hour chart not

that one that's the one i want um and wait for price to load so if you

remember right we had that four hour break of structure

there we go that's loaded we had that four hour breaker structure that took

those equal lows we tapped into daily demand so we swept that liquidity and we

were looking to play that pullback potentially up into for our supplies

that's quite a big for our supply zone so i'm just going to kind of refine that

to the wick right and potentially we can look to target price up to there and

then potentially look for a lower high to then come back down towards these

lows down here so let's play this forward a little bit

again i'm not going to talk too much about management we can talk about that

at a later date but for now it's just understanding you know where price is

most likely to go if price will now load my drawings there

we go so yeah we can roughly just target our backup to for our supply and then

let's just play this forward so at this point what you know what i'd be looking

for i'd be looking to see is supply going to hold or are we going to get

that m15 breaker structure to the upside obviously in this case we eventually do

get that so we can just put this on here and then

let's put this forward um for the time so big nice swing move up

obviously we then initiate that m15 pullback to form that higher low and

then we continue to upside so really what we're looking for is price to then

pull into supply and then we can start to look for signs that price is starting

to to break down to the downside and then we can potentially that can give us

an indication right that the four hour lower high may be in place so still

pretty much bullish at this point right it just formed another higher low now

we're tapping into supply so this is where you know really got to start you

know in the live market i'd have my alerts and the moment we're in there i

would really be you know paying attention um to what is going on at this

point so but pulling back this for me would be

the swing low that i would want to see broken to get you know a confirmed

bearish trend change obviously not just a change of character but an actual

trend change and that would be my high so we are starting to get changes of

character here so yes it is definitely more than valid to start looking for

shorts within here okay let's just play this forward a bit more

so at this point right what i can now see

okay so we still haven't taken up the low if i just zoom in

is we've tapped into four hour demand we have

run the liquidity above these highs here we have had our change of character

we've then mitigated right the extreme supplies in there so i draw on

right we're starting to get a series of mitigations which is what is showing us

bearish order flows starting to kick in right

we then take these lows here we pull back into

supply then we continue back down now what we have done is we haven't taken

out the low but we started to build a nice double bottom

so the m15 is still bullish of course so literally it could just reject demand

and we could shoot up from here so let's see what happens next

pay press forward a little bit more okay so now we can see that it's failed to

take out those highs on that first go there and

again we have another mitigation where supply is starting to hold so we've seen

those series of mitigations right we can see this trend line liquidity got

absolutely smashed right anyone's selling that trend line boom sweeping

security inducement for the supply zone and then we retrace but what do we also

have we have these big equal lows you can even include this in there as well

sort of almost a triple bottom for price to potentially target and sweep and then

we get price breaking below we now have the m15 confirmed switch bearish we've

had those series of bearish order flow kicking in

and now we've had a break of structure so at this point i'm thinking okay we've

mitigated for our supply all right we're with the four hour and bearish daily

trend we've now had a confirmed m15 bearish trend change so now all systems

go to look to want to get short so what we can do is we can mark on our premium

discount clearly we want to be ideally buying uh sorry selling up in the

premium all right and there are two kind of

obvious levels that i would see to sell at one would be

this pretty clean push here right from the supply zone where we can see a lot

of money stepped in to take out those lows and then we have this one just

above with the extreme okay so i'm just going to run this in a

little bit because obviously we've had this series of bearish order flow price

shouldn't really come up above this high here

if it is to remain bearish now out of these two zones which one do you think

is the highest probability because they are both more than valid and you can you

know whack a limit order on both but if we want you know we had to pick one and

we are going to use the liquidity concepts that we understand right which

one is going to be better well let's go through this slowly and look at how

those zones were created so obviously we had this bullish internal move come up

we then created demand right with this cell before the buy so then if we drag

that across what happened well price went up and then came back into

demand but it just smashed pretty much straight through and it wasn't until it

swept that low here but then price pulled back up right to close that bush

candle here so for me there isn't a reaction there right remember the

reaction is key because you want to see that exchange between buyers and sellers

but for me there wasn't one price just smashed straight through okay so that's

not great so for me neither of these zones are flips in my opinion

now what i already can see i like about the top zone is that that is where the

move that led to that first initial change of character right that took out

that low there um what do we also have well when that zone was created was it a

sweep zone yes because it took out those relatively equal highs there obviously

it's very very subtle on the m15 time frame but what we are doing is we are

fractally reading what would be going on the lower timeframe because on the m1

what do you think that would be a nice big double top that price has then swept

it's then retraced big money has stepped in right because what's happened is

prices tried to break up above those highs and then boom it's got slapped

back down right with those big sell orders that then led to demand getting

that change of character now ideally we already got flip here as well but

obviously that hasn't happened in this case so just going to delete that for

now and then we pull back and then we obviously created more supply and we

went to the downside but what i don't like about this is a couple of things

one well what i do like is it did lead to

the brake of structure which is decent but one it's a very very clean push

right there's no inducement near this zone within the leg so what can often

happen is that can be used for inducement for the zone above also it's

not really technically a sweep zone yes it did take the liquidity of the inside

bar range um but for me that's not as significant as taking kind of the actual

kind of you know larger range that formed here like it did on the previous

one so for me that's left equal highs to be inducement for this zone which did

actually sweep liquidity which was a sweep zone okay and this is a king push

there's no inducement above it so if i only had to pick one

i much prefer the top one also this is the extreme which is obviously ideal as

well to be looking to sell from so let's see start to get a bit of a reaction and

then price spikes up and it sweeps that liquidity above those highs there um and

then that leads to the retrace so okay we might not get tagged in

but you know at least we you know used that confidence to potentially avoid a

loss of us getting spiked out price still hasn't come up lower right this

high here has failed to do what it's fair to do its job it's failed to take

out that low so what does that tell us that tells us that this zone here

is going to be run most likely obviously not guaranteed it's most likely going to

be used for liquidity right for inducement for this zone above so now we

have built inducement right for a price to tap into here what do we also have we

also have all of this trend line liquidity to target

okay boom boom boom and now we're really good

trades and then set your limit order and take this trade short so just like the

long that we took you know i'm just kind of showing you the conservative ways of

trading here right because obviously we can drop down to the to the lower time

frames to get a much more refined and high uh you know let's be conservative

field excuse six pip stop all right um yeah it's on the distal and

then because remember this is pro trend we're trading from the four hour extreme

right we've got all of our confirmations the m15 switched bearish we filtered out

our two zones using liquidity concept right which one

was a liquidity sweep zone right which one

took liquidity to form the zone and which one had inducement in front of

obviously the one above had a lot more go for it in terms of that now we're

staying at the top so what that should tell us is that this four hour swing low

here right it's failed to take up the swing high so now we have all of this

confluence right this low should be getting smashed it's a weak low it

didn't do its job so now we can hold with confidence at a minimum down

towards this low here what also do we have right we have those relatively

equal lows for price and then tap into and sweep that liquidity we obviously

had all of this trend line liquidity here building as well right it's

literally everywhere in the market so let's just place forward and see if

those lows get run or not and boom that low gets run so

you know you've got 15 are there depending on how tight stop was you may

have been a bit more aggressive um you know with a five five pip stop so

anywhere between sort of 15 to 18 are there and then here even just up to four

hour supply you had you know over 40 are there so

insane amount of risk reward with very hands-off trades over the space of what

from the eighth of july uh to the 13th suggest about a week's worth of price

action um buying the bottom selling the top right

you just waited for all of that confluence nice and patient

on the m15 time frame don't even have to go any lower obviously you have multiple

poise that you can potentially set limit orders on but just using those two sort

of main concepts that we use with liquidity one the liquidity sweep zone

right which one took liquidity in order when it was formed and two which one has

inducement in front of it to induce buyers or sellers right for the big

money in theory to write to potentially be using um to then you know increases

the validity of those zones that we are looking at and then obviously using our

knowledge of market structure week highs week lows liquidity to target in order

to help us with our management decisions okay

right hopefully now um you can start to see how yes liquidity can be subjective

you can draw on these lines everywhere but how we kind of you know not forget

about that but we are concentrating on the concept in a very very mechanical

sort of and refined way of really just helping

us to to refine our supply and demands even more um

and use it for areas to target right that understanding that every time we

take out one of those key structure points in the market yes we're not

expecting price to to take out this low and then fill in

reverse but we understand we're in a trade that it's likely when price takes

out that low it's likely we're going to get a bit of a pullback of course we

never know how steep that pullback's going to be or it's just going to be a

little bit of reaction but it's having that knowledge that when you are in a

trade when you see structural loads like this right it's very likely you're going

to get a pullback of course always it doesn't happen straight away but it's

just having that knowledge so whether you want to take some partial profits

here just in case you don't want to hold a steep pullback they're the sorts of

areas that you can start to look at right

so on and so forth so i'm going to leave that there um i'll tell you what let's

look at one last example um on eu is a pretty good example we have looked at it

i believe before i think in some of the examples and the lessons um but it was

just a really really good example of um

liquidity in action so let's link up these time frames a

little bit that should be my weekly chart that should be my four-hour chart

and then let's get this all to load if it will load for me

right okay got the four hour chart to finally load so

okay the area that i want to to for us to just quickly focus on before we wrap

this session up is when price obviously we just looked at the trade example here

where we played that pullback from the daily zone into four hour supply to then

run that low here and then what happened is we filled up more orders

we actually tapped into the four-hour refine zone within here and then that

led to a nice big bullish breakout as we can see on the four-hour chat right

where the four-hour switch bullish but remember that whole time this is our

daily swing low right this is sorry daddy swing high this is our daily swing

low and that four hour bridge trend change just could be a bit of a daily

pullback right more into premium prices and then this four hour high that we

broke that can just be used potentially as liquidity right that trend line

liquidity as well just for price to sweep and then fuel that next move to

the downside so on the four-hour chart obviously price

just zoomed into it did switch bullish to do that

but then let's actually dig into this a little bit more

and this is what you can do right you're not going to have every single little

zone drawn on right because of course there's going to be loads of kind of

fractal zones within here but like i've tried to say kind of

throughout the lessons is you don't have to be you know mr miyagi and guess

exactly which one price is going to react to you you can just let the market

do it of course you can try and anticipate and have them have them drawn

on but if you want to keep your charts you know reasonably clean especially in

the live market that is something i would advise what you can see is when

this sort of price action happens we can see that we broke out from the four hour

high where you know after a four-hour break of structure that we expect a

four-hour pullback but we're also aware that you know this could have just been

a daily pullback to form a daily lower high and go so we have to be aware of

that in the back of our minds now when you see a nice big bullish candle like

that that instantly gets slapped down in the next candle and fully retraces and

we get a pretty convincing change of character there which we know what is

going to be most likely a m15 bearish trend change and then we understand that

you know potentially a daily lower high could be forming now the four hours

showing signs of weakness that can give us pretty

you know a decent um uh sort of idea to potentially be

looking for shorts to play that film reversal now of course the four hour

could just pull back right into demand for former high low and we could go and

the dele could switch bullish of course so we do have to look for longs as well

but this is just you know a good reason to understand that although you're

trading against the four-hour bullish trend if you are looking for shorts in

this area it's understanding because of all of the multi-timeframes together of

why actually it's not too aggressive training against the four-hour trend

because you are anticipating that that could be the daily low high and we could

be going down to run these will be closed because you can see how the load

formed here right all of these wicks here it's quite a weak way of forming a

swing low generally when you see a swing low it's a sharp pullback like that

right when it's like this why is that a weak

low well one it's obviously moved away very very slowly but two look at all of

the quality that's going to be building below kind of all of these relatively

equal lows tons of liquidity that price is going to want to come down and sweep

okay as you can see this sharp move away

that's a bit more of a sign of a king a swing high because big money has stepped

in to do that right so anyway let's take a look at this this

kind of area here and look at how we could potentially could have traded that

short so let's hop down to the 15 minute time frame

um and i promise this will be the last example that we look at but this is a

really really really key one so this m15 bearish breaker structure

downside was obviously that four hour change of character and then we kind of

had multiple supply zones right whether you have a refined or the wick or

whatever that we could be looking um at to trade so

see you over here right what do we have we had um

relatively equal those there right so just looking at what facilitated this

pullback after we've got the break of structure and that's what i mean you

don't have to have every single drawing on zone drawn on you can see price start

to pull back and go okay and when i look left does it make sense what we're

reacting to or reacting to where we are reacting to this m15 demands in here

right we've tapped into that demand zone how was that demand zone formed well it

swept these lows here right so sweep liquidity and a push up now prices come

back in and that's facilitated the pullback so we have this supply zone

here to look at we have these supplies here to look at so what's one tool we

can use to help us pick kind of or filter out the zones we can use premium

and discount okay so this one's pretty much in a discount it's not ideal price

pulls back into it it has a bit of a reaction right but it's not enough it's

just to facilitate you know that substructure pull back to then continue

that move on higher right so we sweep those lows

and then we continue to the upside so then we can start to look at our refined

zones up here price taps into it we start to get that change of character

again to the downside old internal demand zones just you know facilitate

those pullbacks but it does what it fails to take out that low so

technically although you know we are rejecting supply here that technically

should be a weak high at this point remember this is the swing high that we

are within this is the swing low right now price has come down we've kind of

tapped into this demand zone here just drag it across and now we're starting to

pull back so we do have this supply zone here but we do have to be aware that it

is a weak high but in this case supply does actually hold and then we continue

to try and push down and we run all of this sort of trend line liquidity here

right we tap into what was these lows again but demand starts to hold right

that internal demand we get here if you look right we get that pull back that

break of the low so we get a minor breaker stretches to the upside we get

that change of character there price then pulls back into demand

we build these equal lows price sweeps those equal lows we come up right we

take these equal highs and then pull back into demand all right so on and so

forth and then we reject i believe these buy to sell works here that took out

that inside bar right and then we get another move there

so i'll just show you get rid of those drawings

all right sweep of the equal highs equal those the target so we get that f you

sweep right the sweep of the highs we push down we pull back into it that's

just sweep zone and then boom we finally take the low there so at that point when

we get that m15 break of structure this for me for just circle it becomes my new

swing high why because that was the highest point in the pullback that then

led to the break of the low so

what also happened right this whole time when we were bouncing from demand

because it's against the trend what's all it's doing it's just generating that

sell side liquidity right with all of these equal loads for price to tap into

to sweep to facilitate the pullback right now in this case it did actually

have a very very aggressive sweep and it tried to do what actually tried to

reverse it tried to break up higher and take out our newly formed swing high now

if you're looking at this in the live market and you see this um what i would

always recommend as well is you always set your alerts on the pair that you're

trading on your kind of key structural swing lows and swing highs so this is

when your alert would then go off you see price trying to potentially break

out higher and actually form a higher high on the 15-minute chart

but then what happens is price closes back below with that m15 candle so what

is that a really good sign is that we've just swept those kind of weak highs that

had built before we've tapped into all of that liquidity and now we've retraced

i remember what i said about sweeps we want to trade away from them not into

them so when you see that sweep you see the failure to close above the high you

see price retraced back inside that is a really really good bearish sign to look

for shorts because we are still pro trend remember we haven't had a candle

closure above so the m15 is still bearish we've had that sweep we've had

to tap into liquidity we've had to tap into our supply zone now let's all

systems go to try and run that weak low because that weak load failed to do its

job yes it wakes the high but it failed to actually cause a true break of

structure now

let's actually dive into how we potentially could have traded this now i

made this kind of uh point before me originally to the supply zone that you

know if you didn't have this drawn on you know i probably wouldn't have had it

drawn on i probably would have just left at the more obvious swing point zone

there but if you see what we just saw right which is where the m15 counter

goes up and then it violently retraced back and you see okay it just missed my

supply zone you don't have to go oh well you know

i'm not going to trade it until it hits it because what you can do as long as of

course you get your lower time frame confirmations and your entry model sets

up it's just looking left and investigating well what is price

reacting to you and that is where you can then see okay well we do have these

cell to buy works all right that makes sense what do i like about it even more

well we had these buy to sell to buy wicks here all right

remember we looked at this before when we're looking at flip zones okay that

does make sense because we had lower time frame demand that then made that

higher high price came back into that demand it tries to do its job to make a

higher high and then we flipped and that flip led to that breaker structure there

it's actually yeah it's a pretty decent zone maybe i didn't have it drawn on

before because obviously it's quite you know it's quite a nuanced zone then i

see price tap into this high it fails to close above and it violently retraces

okay that's a pretty good sign now that this week is a weak low if i get my

lower timeframe confirmations i'm unhappy to take um take that entry after

all of this liquidity has been swept so let's jump to one minute hopefully it

will load for me um there we go okay so as you're looking at this live

market right as price is starting to approach your high here what is

happening well already i can see these beautiful almost triple top uh equal

highs being built and what is that that is inducement before uh the zone so m1

the quality there we go so let's play this forward a little bit just going to

zoom in so we can actually see it

i mean even here just to fuel this move to the upside right you can see it again

and again we build these equal lows price sweeps those equal lows right

moves the upside pulls back into demand and then that fuels the move to run

those highs there right so coming to our demand zone not

thinking anything too special as of yet all right okay tapping a few more orders

trying to break up above that m15 high okay maybe potentially we're starting to

switch bullish okay boom right it might not look like much it's probably only

about you know five or six pips but that takes a hell of a lot of money to do

that in one on one candle that is big orders being filled we now have an m1

change of character it's a bit more subtle but it's that inside bar is a

minor pullback right so now we have an m1 uh change of character so i'm

thinking okay i'll be looking at the 15-minute chart i've seen that the

15-minute chart has now retraced back inside i'm understanding that that m15

low that we looked at all the way down here right is probably a weak low so now

i'm just going to look for can i get my flip and shock well we've already had a

chalk we're pulling back into the area of demand right so whether you take the

whole sort of range here

or whether you take the just a single candle right it doesn't matter massively

matter so let's draw it across and see is there going to be a reaction here

because we could react to here we could react to here it does a massive manner

the way that my thought process works when i'm looking at this in the live

market is i'm literally just waiting for price to start to move to the upside

right where is the demand going to step in and then i will look left and go does

it make sense right so let's see okay prices react to this level of demand so

whether you took the whole range or whether you took the candle it makes

zero difference in this case so now as soon as i see that bullish retrace i see

demand holding right that exchange between buyers and sellers what am i

going to do this is literally what i do in the live market i'll draw my line

across from the reaction point right and i'm saying to myself we've seen that

change of character we've seen price react so now as long as

we don't take out this high here right we swept liquidity as long as we don't

take out this high here and this reaction fails right us all systems go

now to look for that truck and flip entry so that demands holding okay maybe

it is gonna work maybe it's gonna make a higher high okay it's weight to the low

so if you're using um if you need to see a counter closure below like type one

mapping that won't be enough for you but for some people that will because what

that will essentially represent on the 15 second chart is price probably did

break and close below and now it's pulling back into that demand that did

it and this is why when price wicks it and it pulls back in you can literally

you know hit sell smash sell on the market and you could be in the trade

already but maybe you want a bit more confirmation and you want to wait for a

candle closure below so maybe you're going to think that's not enough for me

because what can happen right and this is why just a week break is less lower

probability this price could just be running that liquidity there just

tapping into some more demand has been in here and that could be enough to fuel

the move right so that's why with brakes are a bit more aggressive

so okay now we have a clear candle closure below here

but what do we also have if you didn't like this change of character you wanted

something a little bit more significant now we have this one as well so we have

that sort of double break of structure even more confident so we have a failed

reaction we clearly have a change of character demand has taken control uh

sorry supply has taken control right it's overpowered demand we had a sweep

of liquidity this is all systems go now to sell

anywhere within the supply range okay so you could take that whole range um but

for me i'm happy to be more than you know a little bit more refined there and

kind of take that last pivot there and then whack my limit order on right i've

seen everything i need to see so just put that in one short there two pip stop

perfect gives me a little bit more buffer price did want to push a bit more

higher and there we go right so let's pose forward and see if we do actually

get tagged in or not okay so you could have taken the eq

there and got even an even better stop and now we are within the trade okay so

boom everything that happened there right

we've spoken about in the 15-minute chart

we got a massive sweep of liquidity in a 15-minute chart we tried to break up

above higher we rejected supply pretty violently the m15 then closes back below

that then tells you that the m15 low is probably weak we look for our engine

model what do we have liquidation mitigation of a high time frame zone

chock flip boom set your entry order no

emotional interference that is the exact same mechanical thing we want to see

again and again and again and then you can run all the way to the bank right um

and remember like i said about management you've now got in what should

really be the extreme extremity of that range this is that weak low it failed to

do its job let's pay fast forward and price ends up absolutely smashing it and

boom obviously you can hold this a lot more further if you're anticipating that

daily lower high yadi rdr but just at a minimum to that low in the space of

let's see uh

so what was that uh 255 to 15 25. so what's that 30 minutes pretty

much bang on 30 minutes you've made 26r right we've just picture perfect setup

this stuff happens again and again and again

and you know if you've got the foresight to

potentially see that

you have you know caught what may be yes it's against the four-hour trend but

what may maybe that deadly level high then potentially right you could push

that even further down towards that daily low for you know obviously a lot

of profit i'm not going to show that now um but yeah it's just kind of showing

you how we can now combine everything that

we've looked at so far market structure supply and demand those structural zones

those flip zones with liquidity just to increase the probability of those zones

right for two ways one the zones that are sweep zones the ones that take

liquidity and two ones that have inducement in

front of the zone okay so that's the two ways in which we use liquidity to

filter out zones and increase the probability of them but also we just

lose equality just to understand like why price is doing what it's doing why

we get those retraces after breaks of structure as it taps into those external

ranges of liquidity you know any swing low even the internal ones within there

you're still likely to get very small pullbacks and you can use that to your

advantage when we start to think about management and where potentially we may

want to take some partial profits along the way whilst we are in the trade just

to make sure that we pay ourselves right so yeah i think that's pretty much

everything i kind of wanted to cover about liquidity um on euro dollar

obviously there's a few little mini lessons within there as well um you know

on top of what we looked at in the theory video but what i'll probably do

is go through um you know a couple more pairs and just kind of show you how

these concepts are universal and they apply to literally any currency pair

that you're looking at and yeah we'll just look at some some different

scenarios of how they set up but yeah what i'd recommend you guys do whatever

pair you've been using thus far throughout the lessons to to build on

your drawings it's just yeah just go and study it go and look at liquidity go and

look where there are equal highs and lows

go and look at examples right before where you were looking at these swing

points these turning points on the market and you identified potentially

multiple supply of demand zones that you were potentially anticipating

price to pull back to and you weren't sure which one you wanted to look for

entries on now go back and see okay maybe that one failed because it didn't

um take liquidity when it was created or maybe that one fell because it didn't

have inducement in front of it right but then what i also want you to do

is see times where um you know there isn't inducement or maybe there's a

supply zone and there are equal highs just behind it but actually it does play

out right because it's not always going to be picture perfect like that in the

market right sometimes those zones that you would think in theory are not great

but then they play out so that's when you're gonna have to ask yourself okay

you know in my trade plan if i see a zone that i'm not 100

comfortable with right for whatever reason because you know there's no

inducement or there's liquidity behind it and i think it might get swept first

am i just going to say my trade plan never trade those zones or maybe i just

need to see more lower timeframe confirmation so just like we said you

know we did with these um or just know any m15 zone let's say this is a

a supply zone you don't like definitely keep clicking the wrong

button there it's like i've never used trading view before let's say you have a

supply zone up here but potentially you know it's got some nice equals equal

highs behind it so there's money behind here and you're

not confident selling from this zone here um but what you may want to do in

your plan is just go okay when i get down to the m1 i just want to see you

know my m1 confirmation actually occur like the example we just went through

and then once i've got that then i'm happy to sell from here and that would

what you would have in your plan so maybe you would say you know i'm not

happy to set a limit order on an m15 zone um if it doesn't you know have that

criteria but what i will be happy to do is actually trade from here if i get my

lower timeframe entry model setting up to confirm that the zone is going to

hold right of course it's a bit more advanced but we'll get into that as we

start to talk about trade plans but this is just you know things that you'll pick

up as you start to collect data as you start to kind of you know feel what

makes most sense to you in the market as you start to kind of really figure out

your trading personality yeah and it will just come with time so i'll leave

that there before i run them any longer and hope you guys took some value from

that and i will see you in the next one

you