in this video we'll be covering timebased liquidity every time you trade you're making the wrong decision even when you're right what does this mean when price takes out an old high how do you know that that buy side liquidity is going to cause a reversal or if it's just going to cause a retracement and then keep going higher how do you know if you're trading at the right time if you don't have your actions predetermined before entering the market you're using a reactive approach which is highly subjective because you're reacting off of the price feed that's being offered to you just like in blackjack the dealer has to hit until they reach 17 once they hit 17 they stand it's a mechanical system and they're working off a rigged shoe that's in the house's favor but the player they don't have a mechanical system they're reacting to the new cards that they're dealt and they're making on the spot decisions based on how they feel based on the cards that they're dealt do they feel like this is a good chance ah basic strategy says this but they're reacting to it right they don't have a predetermined system of okay if this happens then I'm going to do that versus the dealer they have to do this until it reaches 17 once it reaches 17 they have to stand so your trading should be okay at this specific time I'm looking for this in price if it doesn't present itself I can't trade if it's not this time I can't trade if you're reacting to price going above an old high and saying "I feel like it should reverse here you're making an on the-spot decision reacting to price it It's highly subjective and you have no statistical edge doing that there's no data that proves based on how you feel when price trades above this buy side liquidity pool that that is going to be profitable over time that you're going to have some type of edge you're going to beat the market doing that you're not so the point of this video is to have a structured approach to okay before I trade on Wednesday tomorrow which levels am I looking to sponsor moves and what historical data proves that that level is likely to do this so we're going into the market already knowing what we're doing versus what what is retail doing they're going into the market reacting off of certain highs and lows saying "Okay 2022 model formed here silver bullet formed here." But how do you know if it's just going to cause a reversal off of that old high or it's going to trade back into it like a breaker or a mitigation block then expand so using these timebased liquidity pools it gives a structure so at least you're not reacting to price then you can frame what times you want to trade as well so a good start to this is to stop using the wrong price levels do not use very minute liquidity pools because first of all there's no liquidity if price forms a low on the one minute chart at 1237 and pulls off of it for I don't know 15 minutes and then takes it out yeah there's a little bit of liquidity beneath that low but it's not going to sponsor a lot of movement so the benefit to using these timebased liquidity pools is that you're likely to get some movement off of it at least whether it be retracement or a reversal you could still frame a trade off of that level so the first step is to stop using insignificant levels that won't sponsor much movement and and how do you not do that well the reason a lot of us do it is because we're impulsive right we see price above an old high we're like "Oh it hasn't traded above an old high in 30 minutes i better take this." But if we already know the price levels that we want to trade at if I know I want to trade at this timebased high and I already know the window that I want to trade in it's a rule-based approach that cancels out the possibility for impulsiveness because we're saying we can only do this if it's at this price level so we're not reacting to price being above old highs we're not fearful we're using specific price levels the benefit to using timebased liquidity e like I said even if price doesn't cause a reversal if you're using these higher time frame big levels you're likely to still get some movement and I'm going to show you guys a chart example of what this looks like it's more forgiving if price takes out that 1237 one minute old low and it only was above it for a little bit there's not much liquidity so yeah it might take out that low it might wick it on the one minute chart but then it just cuts right through it sometimes that 1237 1 minute low will cause a spike back up but here's the bad part you if you're right about it that one time you're getting rewarded so even if you're right it's setting you up to be wrong so that's kind of the roller coaster that the market maker takes you on it'll work sometimes you'll gain confidence in it just to gain enough confidence for you to press the button and then that same idea is used against you at a later time so having a mechanical approach to knowing what we're going to do cancels out the possibility of reacting to price we do not want to be reacting to price so we talked about there's more liquidity beneath these higher time frame key timebased liquidity pools i'm going to dive into what these timebased liquidity pools are next also there's just just look back back test it these historical timebased liquidity pools that I'm going to cover in a second you're likely to see some type of reaction over them obviously there are going to be times where it just expands through it and that's likely because you're offside with the higher time frame move but there's just so many benefits to already having a predetermined level to trade off of so what are those timebased liquidity pools you want to use monthly highs and lows weekly highs and lows daily highs and lows and session highs and lows and if you guys want to know more about the look back period for these highs and lows and a more structured approach to finding the draw liquidity I cover all that in my Discord but these are the liquidity pools that you want to be focusing on they're likely to sponsor larger moves and they're more forgiving we're going to dive into some examples where you're going to see it price was not even going down like it takes out a monthly high and the draw in liquidity was still higher but because it's such a higher time frame level a day one singular daily candle can go up to a monthly high it can cause a wick reaction so it can c price can open up it could trade up to that monthly high and then slightly close lower than the open but because that wick is several hundred handles it can offer a counter trend trade so if you just kind of narrow your focus into using these key levels to frame trades off of even if you're not picking the exact reversal points you're likely to get some type of movement off of it so what does this look like on a real chart we could either target these timebased liquidity pools or we could frame trades off of them if price is close to them it these are strong magnets because there's a lot of liquidity and at the end of the day the market is seeking to absorb liquidity if you look at the most recent video on my channel we talked about this last up close candle and we are anticipating price to expand right off of that level into these two specific highs specifically because this is the high of the month of April so this is a previous month high so we're targeting that and above that this was a weekly high so these were both objectives you can see price gapped up and reached it there but trades can be taken to these timebased liquidity pools or off of these timebased liquidity pools this is what I mean by these levels are very forgiving historically if you go back and you look at those timebased equity pools the monthly highs and lows weekly daily and session highs and lows for the session highs and lows I'm talking about New York session Asia session and London session looking for trades off of them or to them because the market tends to gravitate because they are massive liquidity pools and the higher up you go the more liquidity that's resting beyond them so what do I mean by these timebased liquidity pools are very forgiving well if this is a one minute chart you're not going to take a short off of this cuz this doesn't offer large enough of a range but for the daily candle I mean from this high back down to this open that's several hundred points so even though the draw liquidity is way up here right it's targeting this high and this high which is what we talked about in the previous video and also you have this previous high up here this is at around 21,350 it didn't reach it yet but that's the overall draw in liquidity in my opinion which is still a little bit higher than where it's at right now this is the previous month's high so this is March March uh monthly high which is why I think it's going to gravitate towards there but even though price is going to go up to there right this is the monthly high of April and look at that reaction off of it so even though it cuts right through it if we drop down to a 15-minute time frame and we go back see how using this timebased liquidity pool still offered a retracement back to the downside versus if this was a one minute chart you're not going to trade this 5-second drop back to the downside but since it's a daily candle and these candles take much longer to print intraday inside of that daily candle this move down can be several hours so it can offer a price run that's likely to last longer and it's likely to be larger in magnitude using these higher time frame levels offers larger magnitude price runs and like I said in the Discord we do talk about using these levels for manipulation and for offset and kind of structured plans so predefined actions in predefined market conditions so when the daily bias is bullish how we want to approach using these when there's no daily bias and we're relying on a 1 hour or 4hour chart right what what are we looking for in price using these levels what are we targeting so all of that I cover in the Discord so the point I'm trying to make is that we want to take trades to these levels or from these levels when it's close to it we want to take trades to it and if price takes it out we can take trades away from it we could also use filters like if the higher time frame bias is higher maybe we won't take a trade off of that level because we think price is going to cut through it but this at least gives some type of constant variable where you're constantly looking for these specific price levels and these price levels only and you can refine that more by only trading within specific time windows such as the AM session 8:30 to 11:00 a.m or the PM session 1:30 to 4 p.m if you combine the time with predetermined price levels and then looking for price to trade to them if it's close to it because again it's going to be a magnet these are highly liquid levels there's a lot of money above old highs and below old lows these specific ones so you have a much better chance at framing high probability setups off of these levels because there's more liquidity and they're higher time frame levels and also you can track them so you can collect data on specific levels and over time you can kind of get a feel for okay I'm using a fixed level right but at this time it doesn't really work that well or on this day it doesn't really work that that well or if the higher time frame bias is even higher it might expand beyond that session high and go to that monthly high so things like that you could use as filters and you can collect data and you're constantly getting feedback on the same levels all the time versus what is retail doing price goes above an old high it hasn't gone above that old high all morning so they feel like they got to chase it at that price right they're just they're constantly making decisions off of what price is feeding them versus what I'm teaching you to do here which is you already know what you're going to do at a specific price level and you know the time you're going to be trading it we're not reacting we're anticipating