[Music] the liquidity topic for today is liquidity and um what is liquidity for me it's just uh money liquidity is money yeah liquidity is money yeah so it's basically what throws the market here it is money and you know the market basically is like a country right and we all know what moves the country what makes the country you know stay ahead of poverty it's money here you need money to fix the road money to you know pay employees and all that so basically in the market here the only thing that makes the market move is liquidity when there is money in the market when there's money flow into the market when there is liquidity basically um the market will move fre really fast and better A lot people make money faster or better you know basically liquidity is just money to me I don't like to complicate things especially explanations I don't do all those kind of explanations on deep rout of explanations let's just move let's go into it directly here so um the basic Market structure sorry the basic liquidity tells us that um liquidity is um liquidity is equal highs equal highs and equal lows right equal lows so they tell you that um you know whenever you see this you expect this to happen price will take out this high that this high is actually liquidity or this low here is liquidity however you know or they even say um liquidity is um when you see bullish structure like this here then they say this is trend line liquidity then they say price will take out all the low everything and then you have a you see this is not um a very nice approach to liquidity cuz if you say liquidity is money why do we have why do we have to know I mean how exactly are we going to know when price will take out all the lows how exactly how we going to be precised you know seeing equal highs and then ex just believing that okay because we have equal highs now we expect this to happen most times we would have equal highs right and we have this then price will just take out this one instead without taking out this equal high so why does this actually happen Yeah so basically that's just how they T us about um basic liquidity has liquidity isn't that right so we came up with um very nice approach to liquidity very simple form of liquidity a lot of people actually still don't not understand the cons of liquidity right and I've been able to simplify it by the way very very simple and straightforward way that would you know make you really understand how the market moves yeah so let's move into it so I have three types of liquidity right have the um structural liquidity let's start with the inducement liquidity structural liquidity struct liquidity and inducement structural and transactional liquidity action on theity to so when you see this is all that happens in the market right price either induces you know create structural liquidity or transactional liquidity so we need to simp simplify liquidity from all those um double Tops This and That kind of liquidity to just these three types of liquidity and after this video you should be able to understand how these three types of liquidity work and use them effectively right so let's start with I believe it's that was transactional liquidity first after transactional should be inducement and after inducement should be structural so I think Iain that however um what is inducement induc was it used for inducement liquidity is used for um expansions expansions structural liquidity is used for correction I'm sorry um continuations continuations but it's good structural liquidity is like the most important type of liquidity here for continuations here and the only way to support structural liquidity is when you have the last low before the main low [Music] or or the last high before the main high or the last ey before the main High then transactional liquidity is used for correction correction I'm going to explain everything how it all works but let's startle with transactional liquidity for Corrections here so when we say transactional liquidity you remember when we talked about um structure right this is where structure comes in again structure very important here then we have a sweep of this previous low and a break of structure right so now we're able to understand that this is a bullish structure here we have a swe of this low then we have a break off structure whatever I tell you that this high is actually liquidity and that is transactional liquidity now let me explain remember we expect this loow to be protected and because we have this break of structure what are we anticipating a reversal then a buy correct however transactional liquidity tells us that okay it's actually used for Corrections and then what is Corrections in other in other words basically is reversal yeah price corrects back into this Zone then we buy off basically apparently here this high that price took out is the transactional liquidity and it's not called a transaction liquidity until price takes it out so price takes it out it becomes a transactional liquidity where you start anticipating a reversal or correction it makes you anticipate reversal you can see how price took out this low here right then what happened immediately correction price to out this High whether you anticipating or you're automatically anticipating a correction a correction you there anticipating a correction so as anticipating that correction if possible here you can always you know if you if you want to like take a risk tra or whatever or you have an hedge or something you want to look out for can always you know start looking for sells right you can now sell into this buy Zone sell into this buy Zone then you look for your buy entry at the same time then you buy but you're able to understand that this part clery here on this swing structure is worth transactional liquidity and you're automatically anticipating a correction just like what happened on audusd right here the trade we are currently anticipating here after price took out first first and first we have this sweep then we have this break after price took out this transactional liquidity what happened Corrections back into this Zone can you see that so this is what happens and this that is all the transactional liquidity does here automatically M price took out this you already anticipating a correction it's that simple you already anticipating a correction back into the Zone because if this didn't happen there will be no reason for price to reverse but since we had this now we confirm that okay we have we now have a bullish structure here bullish swing which is from this low to this high now we expect price to come back into this Zone then we buy it's that simple so that is all about transactional liquidity basically use for Corrections yeah Corrections now let's move to inducement inducement liquidity so after inducement basically is just for expansions right so yeah in most times yeah okay let's let's do structureal first before we move on to inducement because inducement should be the last one because basically let me explain the inducement a quick one here inducement only happens after I mean if there is no structural liquidity right inducement will only happen if there's no structural liquidity keep that the back of your mind so yeah let's um structural liquidity for continuations now you know that this is a bullish structure and what you're expecting is correction and buy but how do you want to buy where do you want to buy from right um structure tells us that okay this is a bullish structure here and this is a Zone we want to focus on so we want to focus on this Zone here within this Zone we have nothing to do with this Zone here focusing on this Zone here right so structural liquidity most times here you would have price you know do something like this do something or let me clear that entirely you'll have price do something a s a break break break so yeah raise your swing structure this is your sweep this is your break of structure and this low expected to be protected and this is your high so this is your swing structure yeah this is your swing structure why is this your swing structure why not here here and here you're focusing on where there is a sweep that protected low or or the high you can see there is no sweep here there is no sweep here which automatically means you expect this lows to be taken out but because there's a sweep here this low becomes a protected low and where where that reversal actually starts from becomes your high so this low to the high is now your swing structure they're focusing on this low so that means that from here to here is where you want to take your entry from this Zone here you have nothing to do with this zone now structural liquidity now tells you that the last low before the main low is your structural liquidity remember it's for continuations continuations basically that means that this zone is this swing is a bullish structure here that means you're looking for buys but you can see price is correcting right it is selling to continue to continue the bullish Trend right but how do you how and when do you actually get in now that's where it comes in it tells you that it is the last low before the main low or the last high before the main high in this scenario here this is a bullish structure so that means you'll be looking out for the last low before the main low and where is the last low this is not the last low this is not the last this is obviously the last low before this main low the main low is a protected low right and this is the last low before it that means that this is your structural liquidity and what happens price correct immedately price takes out the structural liquidity you get what continuation this happens M price takes out the structural liquidity this happens it's that simple it is that simple midly price takes out the structural liquidity this happens you get this expansion you get this yeah this continuation basically do we do we understand that how I believe we do anyway you can always come back to the video so that is that about structural liquidity it's it's that simple yeah using the struct uh um string structure concept as well you able to understand it better yeah so that is the first um basically you just now let me give you guys a chat example anyway let's look for a chart example for a chart example let's go to the 15 minutes okay GB USD on GBP USD I took a buy I took a buy when was it I took this buy this buy here I took this buy as well this particular buy as well but okay let me just give you I want something that that hasn't that happened in the past already which is this this particular guy here which of course I took this byy I think sent it to the group as well so let's um go back to the reason why it happened and how it happened so first things first here if we look closely we would see that price did something um let's use the one half time frame all right first thing you can see here is a sweep of this low here then you can see a break of structure now you know that this low is expected to be protected and you have this right now you have multiple lows here you have this low and you have this low here and we all know that this is the last low before this main low which makes this guy the structureal liquidity here then boom what do you have here and then I took the trade right there you can see how price you can see what price you did the same thing I did here as well you can see there was a sweep of this low of the previous low there was a break now I expect this low to be protected now where is the last low before this main low this obviously the last low here and [Music] boom and I took all this trades here you Che the group I it's actually in the group here this trade and this trade so it's you check the group it's in the group free and this buy as well this buy this buy see this buy this one as well using the same thing how do we have here we have a sip of this low we have a break we have a break and then automatically you expect this low to be protected here now where is the last low so the last low here then you you know you have to buy what the low and I think I did one to three as well here and that was it this one is also in the group you can check it it's in the group as well so you can see and that's the same thing we expecting on audusd again right the same thing we expecting on AUD USD it's just as simple as that price takes out this low break structure which is transactional liquidity then we anticipate reversal now where's the last low before this main low here this is the main low here but where's the last low this guyy is the last last low so what do you expect price to do take out this last low and continue the bullish Trend it's that simple yeah so um that isn't all on structural liquidity by the way that's just like let me give it type one so any I have two types of um liquidity here when it comes to structural liquidity liquidity I have like two times CU price tends to give different and it won't always come as um thisp of setup here it w always come like this it always come like this yeah it w always come like this there are times you see different types yeah but it will still mean the same thing meaning price will still do the same thing at times you see something like this you should always know that this is the last low that you want to buy from just want to wait to buy from there times you would see something like this as well you see price take out this come down do this as well you know this is the last low obvious last low that you want to buy from at times you will see price do something like this uh take out this one here then come back to do this now you would probably think you've missed a trade but you haven't because you know that you don't want to trade like this as so you're waiting for price to come back to this Zone then buy like this however there's a simple way to just able to anticipate moves like this so let's talk about that I give them three names here this is type one type two and type three to just keep it really really simple to type one type two type three of structural liquidity type one type two type three to know when um inducement inducement liquidity will come in so now this pretty much it the first one I want to look out for is this there is a sweep of liquidity and then a break of structure yeah then you have price come down again to create this remember your F to you can see it's still with didn't it actually didn't come down even even if it does come down yeah you know okay there is team money here and then this is the last low that means whether you anticipating here you have this first transational liquidity second transational liquidity you anpa in reversal and your entry would be within this Zone here you know this is this a structural liquidity right your entry now you have that you have another type price would most times I as well do something like this a sweet note take note of this here before the break of structure which is transactional liquidity I mean this is the main High here we have this sweep so you can see this leg before this leg gets taken out you can see price created a low before this leg get taken out here obviously this is your structural liquidity here so you know that you want price to come back take out the liquidity and you buy so this is type two and the type three is when price doesn't give us structural um structural liquidity immediately right so originally you already have this structure you already anting this low should that you know should have be taken out here and you anticipating um correction however there structural liquidity and without stral liquidity you don't want to trade right so most times there are times price will do something like this instead come down then buy this just like this right but you happen to see it before it happens right you have like you actually go to the Chart before this happens right so for you not to be in a hurry to lose money here you just have to wait for the same thing St have to wait for the same thing here this is your liquidity this your structural liquidity and mind you it happened after you have seen your structure so this one is just like late entry like you actually this already happened before you saw it yeah but this one happened this particular guy happened after you have seen your structure so you're actually waiting for this to happen you're waiting for this to happen so it comes back later on to create structural liquidity then you do the same thing as well you wait and boom I hope you guys are getting it above all just keep the rule right keep keep the rule here which is a last low before the main low last low before the main low and the last eye before the main high now let me explain the last eye before the main high this is pretty much it the slep of this eye break of structure into price comes back again and there this so instead of you to get in to the trade from here right you be patient cuz you turn like have an hedge in the market something that works over over and over because most times price will likely take out this high before you get a sell and you don't want to be inations like that right you want to be on the right side of the market at least most most times of the time you want to be on the right side of the market so you want to wait you want to play Patience first you want to see you actually seeing a sweep a break right and this guy doesn't have a sweep that makes this guy protected and this is a swing structure so what do you anticipate after tral liquidity this becomes your structural liquidity and what happens price takes it out and boom right that is type one the type two you have a sweep of this eye it's very important price create this again you have a strip here then transactional liquidity has been taken out now you there anticipating what a reversal right which is a correction the correction to come into where structural liquidity and boom this happens most of the time like most times here this is why you have to study tell you to see you know see this look look out for this and you will actually make a lot of money from the market so it's pretty much simple this is the rule again once again this is the ru first first always wait for a sweep of the previous low then you have a break of structure right a sweep a break automatically you expect this load to be protected but you want to see structural liquidity first right then this becomes structural liquidity and what you anticipating boom all the time now let's go to um inducement liquidity how does it work I think we still have time yet it's just 30 minutes so far let's go to inducement liquidity let's do that real fast real quick here so inducement liquidity is used for what expansions now this is where it comes in so now you have this bullish Trend here sweep a break then you anticipating this low to be protected you expect this low to be protected here but something happens but something happens here you don't get a structural liquidity something should just happen just just keep in mind that this low this year that low is no longer protected and will likely be induced that if price is bullish understand that this and you don't see structural liquidity understand that this youred low will likely be taking out then what happens this guy is now this guy is now the inducement liquidity here then what happens here price expands instead here so let's assume we're let's say we are in a bullish Trend so we're in a bullish Trend here price is bullish price is bullish um taking out this low then you have this right let's use this but now you you actually already know that you've confirmed the trend you know price bullish you already have the structural liquidity here but this low now you expect this guy to hold right you expect this low to hold but there is no structural liquidity right there's no structural liquidity what do you expect automatically start anticipating price to take out this inducement liquidity then this will happen expansion are we getting in placee have we getting it it is pretty simple whenever you don't have structural liquidity but you have a protected low but you don't have structural liquidity anticipates this to happen this is your inducement liquidity price will always induce this low so that means you don't jump on trades you don't jump on trades like this should be your rule you don't jump on trades like this you don't just trade basic structure you don't just say because this is um the trade here you now want to just put your buy position there buy position to whatever you must see if there is no structural liquidity there is no trade to always be at back of your mind that if you don't see structural liquidity this will always happen this will always happen let's let's let me give you guys a chart example let's say GBP USD chart example here this is a one hour time frame all right just like this let me c price back just like this let's use this guy for example example yeah a lot of Traders would see this as a you can see price did something here there was a sweep of this High and a break so see this as a chur or whatever it is they call it then they would say they want to trade off from maybe other block or my G here or FG whatever they call it they say they want to sell from there or what happens eventually because there is no clear structure here there's no structural liquidity here right so what happens eventually price takes out that high like aggressively it happens like dramatically price just takes out the high aggressively even this see we have the same thing here I'll come back to this anyway same thing is here we have the same thing there as well why was this low taking out there's no strural liquidity during the week I would explain how to actually use stral liquidity effectively when how close stral liquidity must be as well but for tonight I want you guys to go home with that anyway let me just cut this real fast [Music] okay this is slow is too slow it is too slow too slow this is too slow all right can you see that can you see what happened to this high right you can see how price to get out aggressively yeah and the same thing here as well you can see we had a sweep let just assume this is actually a sweep then we had this break here you can see there is no structural liquidity here from this low to this High here you can see there's no structural liquidity here meaning this low this guy here is just too far away from here let's look at that is too far away like it's just too far so I can't really consider it my structural liquidity right now you can see what price did you can see how price eventually took out the inducement liquidity this low here because there's noal liquidity then what happens next expansion and see how price expanded press pushed up right um let me give you guys more example more example more example mind you it doesn't have have to happen doesn't always have to happen it just gives you an hge like okay you know when when to you know get out of the markets when to look for trades the market here the same thing happened here anyway um let me I'm looking for let me use the 15 minutes time frame 15 minute time frame for so I want to give you guys chat examples as well all right it's quite slow quite slow really really slow Network should I show you guys chat example I don't want to make this video too long here so you guys can always go back to it you guys can always go back to it here anyway that should be all for tonight let me stop recording [Music]