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IDM Liquidity Sweep Counter Trade

Jul 5, 2024

IDM Liquidity Sweep Counter Trade

Key Takeaways

  • Market Direction: How to identify market direction for effective trading.
  • Higher Time Frame Analysis: Crucial for counter trading decisions.
  • Sweep Trade Opportunity Identification: Steps to recognize and act on sweep trades.
  • Lower Time Frame Confirmation: Necessary confirmations before placing a trade.
  • Trade Placement: Where to set entry, stop loss (SL), and target profit (TP).

Detailed Steps

1. Market Direction

  • Identify market direction to understand potential movement.
    • Example: In daily time frame, market is in a range, forming a triangle.
    • Liquidity grab observed leading to a change of character (CHOCH).
    • Lower lows suggest a downtrend on the daily time frame.
  • Create daily areas and mark structures (e.g., order blocks).

2. Higher Time Frame Analysis

  • Confirm if the market has retested higher time frame areas (order blocks).
    • A counter trade is viable if the market hasn't reached daily order blocks.
    • Example: Market not retesting the order blocks, thus short-term uptrend is expected.

3. When to Trade Counter

  • Counter trades should be placed during retests before reaching higher time frame order blocks.
    • Example: Market in uptrend for short-term retest, thus allowing a counter trade.

4. How to Trade in Counter

  • Confirm the structure mapping on lower time frames (e.g., hourly, 15 minutes, 3 minutes).
    • Example: Market shows uptrend in the hourly time frame.
    • Identify valid highs/lows, order blocks, and liquidity sweeps.

5. Lower Time Frame Confirmation

  • Look for liquidity sweep and CHOCH on lower time frames.
    • Example: Once sweep is observed, shift to 15-minute time frame for further confirmation.
    • If missed entry, continue to lower time frame (e.g., 3 minutes) for another confirmation possibly with change of character.

6. Entry, SL, and TP

  • Place trades based on lowest confirmable order block with manageable risk.
    • Example: Entry on a large imbalance, ensuring safe SL placement just below main low.
  • Target profits should be set at the next significant imbalance or valid high.
    • Example: Target set at hourly imbalance.

Trade Execution Example

  • Execution on 3-minute time frame after liquidity sweep and CHOCH confirmation.
    • Entry placed on the lowest significant imbalance.
    • Stop loss just below the low (~8 pips).
    • Target profit at hourly imbalance.

Final Notes

  • Manage risks and ensure entries are within acceptable risk parameters.
  • Regularly assess both higher and lower time frame structures for better accuracy.
  • Practice structure mapping and use previous videos/resources for further clarity.

Conclusion

  • Detailed strategy to identify, confirm, and execute IDM liquidity sweep counter trades.
  • Emphasis on higher and lower time frame analysis and risk management.
  • For more detailed explanation, refer to previously shared videos on related topics.

Thank you for watching! Don't forget to like, comment, and share with fellow traders. See you in the next video!

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