Transcript for:
Liquidity Sweeps in Trading

I have made over a million dollars in profit throughout my entire day trading career and every single trade that I take is based off of liquidity sweeps today I'm going to break down how you guys can spot liquidity sweeps within the market so that you guys can start taking profitable trades based off of liquidity but before I can send you guys off on your own first we have to talk about where liquidity even lies within the market before learning about liquidity sweeps almost every single trade that I would take I would enter in and then I kid you not I would get stopped out and then see price shoot into the direction that I wanted price to go I lost funded accounts thousands of dollars and I lost confidence within the market all because I didn't know about liquidity I'm here today to hopefully save you guys the time and the money that I lost trying to understand these Concepts and hopefully get you guys over the struggle that I had to go through in order to understand these things so if you guys are ready to take your trading to the next level I highly suggest that you guys stay for the rest of this video if we want to be able to take trades off of liquidity sweeps within the market we have to know and understand where liquidity even lies in the first place and liquidity believe it or not is actually one of the easiest Concepts and one of the easiest things to identify within the chart so first thing that we're going to do is we are going to go up here and I'm going to draw you guys some examples of where liquidity lies so everybody knows about highs within the market okay what consists of a high a move up and then a move down right if it was just moves up and up there's no there's no peak okay so we need a move up and then a move down this is plain and simple a two Candlestick pattern yes that's right TJ Jr trading candlesticks patterns prettyy freaking crazy but it's a two Candlestick pattern a up candle and then a down candle okay and then what makes up a low within the market a move down then a move up same thing here if it it's just continuous moves down we we never get the actual low because for it to be a low it needs to have a little move up after that okay now with this in mind what do we know about Trend Traders and most retail Traders and again for the most part we are not trying to trade like retail Traders we're trying to trade with the algorithm and with the banks so with that in mind we know uptrends moving higher highs and higher lows right but at some point in time these Trends have to change and the best trades to take are more often than not going to be the trades that you can take right up here on those reversals and that's what liquidity sweeps help us do and then same thing with downtrends right more often than not we're not trying to cat this little measly move down we're trying to catch this low right here for the start of a new uptrend so that we can make a a lot more money than just trying to trade this little trend on down okay so with that in mind okay and trust me this is all going to come together with that in mind why did we talk about highs and lows within the market well when we are moving in an uptrend what typically happens when we push past a high well retail Traders they say oh we're in an uptrend so what are they going to do once they push past the high higher highs and higher lows they are going to press the buy button so there's a lot of people that are placing buys right here okay above these highs and then also what is happening maybe some people wanted to sell on this move down right people thought that this was actually going to go lower and with that in mind where do most people place their stop losses when they're selling above highs so with that in mind if this High gets pushed past all the people that were selling on this move down what are they going to have to do they because of their stop losses they're going to have to buy back their position at a higher price because they got stopped out so we have people that are buying right here because they think the trend is going to continue and then we also have people that are buying their positions back at a higher price because they simply just lost on this trade so there's a lot of retail Traders PR placing buy position above highs now you're seeing where the highs come in now same thing within downtrends okay we know retail Traders what happens when this low gets pushed past a lot of people are going to be selling why because they say hey we're in a downtrend it's going to keep going lower and lower and lower and lower and lower so they're going to place sell positions here same thing on the contrast right there's this little move up maybe some people thought hey it's going to reverse right here I'm going to place a buy where is their stop loss their stop loss is going to be underneath these lows okay so with that in mind if they're placing a buy what will they have to do if their position gets pushed underneath their stop- loss they're going to have to sell their position back for a lower price in turn losing that trade so we have a lot of people that are entering into sell positions underneath lows and a lot of people who are entering into buy positions above highs okay okay oops let me get rid of this one first boom sell positions underneath lows and buy positions above highs okay so now you're probably thinking well what does that Apple stock comparison have to do with anything well that still applies to the market that we have today so with that in mind okay we know that there's a lot of buy orders that are sitting above highs within the market and a lot of sell orders that are sitting underneath lows within the market okay so with that in mind what happens when we push underneath a low and the market makers and the algorithm want to reverse price well since there's already a ton of people who are going to be selling right here what are they able to do fill a ton of their buy positions to end up reversing the market and that is where liquidity lies okay same thing here where does the liquidity lie within the market above these highs why because there's going to be a lot of people that are going to be placing buy positions once we push past these highs and what does that give the markets the ability to do the it gives them the ability to fill a substantial amount of their orders up here and cause price to reverse okay and you're probably saying well why not within an uptrend why can't they just do something like this well that's the thing market makers are very greedy why would they want want to fill their order here when they could fill their order above these highs and on top of that if they were to fill their orders here they would not have the liquidity see they would not have the liquidity to fill their orders so in turn they would fill sell orders here and then price would move down fill sell orders here price would move down sell sell sell sell sell they would be getting the worst price and they're greedy [ __ ] okay they would be getting the worst price on their entry and the market makers you know them they're never going to they're never ever ever going to not get what they want okay so what do they want they want the most optimal price to enter so what do they know they know hey a bunch of people are placing buy orders above these highs if we fill all of our sell orders in contrast to their buy orders what will happen well plain and simple price will be able to stay up here for a short amount of time for them to S fill all their sell orders and and on top of that when they do fill all of their sell orders they are getting the highest top tickety tip price for their sell orders and they are going to make a [ __ ] ton of money because price is going to move down why because they were able to fill their sell orders same thing within a downtrend okay why on Earth would the market makers want to fill their buy orders right here when if they filled buy orders right here it would go up buy order up buy order up up up up up up and their buy orders would keep getting filled higher and higher and higher because plain and simple the market does not have the liquidity to fill all of those buy orders at once but where does the market have the ability to fill all those bar by okay where does the market have the ability to fill all of those buy orders at once underneath these lows why because there's a ton of sell orders so going back to that Apple example that's what I was trying to explain to you guys where we are still operating within an exchange so we need a significant amount of sell orders for the market makers and for the algorithm to fill a substantial amount of buy orders underneath lows and then when they fill right here what do they get they get that perfect price they get the best entry and what do we want when placing trades within the market we want the best trades we want the best entries and that's why we enter off of liquidity sweeps now obviously we can't just press buy every single time a low gets pushed underneath and obviously we can't just press sell everying single time a high gets pushed above within the market understanding where liquidity lies is literally just the first step of being able to take trades off of liquidity sweep and also just one part of understanding the charts fully but it's also very important that we understand what liquidity is and why it causes the move it moves it makes from those lows within the market and from those highs within the market so I'm going to tell you guys a little story about back when I traded Forex and when I was trading London session pretty much every single trade that I would take I would get stopped out of my trades right when London session would start and then I would see price rip in the direction that I wanted it to go for the day and I even made my own strategy based off of this I called it the London session fake out and I had no clue what liquidity was at the time um and little did I know this was actual liquidity being swept every single time London session would open to fill orders for the move that it wanted to make so now that we know where lies but understanding what it is and why it moves the market in at certain times and prices is even more important so now that we know where liquidity lies we also need to talk about what even is liquidity in the first place and we kind of mentioned this before but we're going to get into a little spelling lesson here okay so we are going to go ahead and Define what liquidity is because if we don't know what it is then why are we even freaking using it I make sure that every single one of my students knows the actual Confluence that they are using and why they're even taking a trade in the first place if you don't know why you're taking the trade you probably shouldn't be taking the trade so we need to understand our confluences fully so that's why we're going to be explaining this right now so what what okay I dropped out of college for a reason what is liquid jeez liquidity let's at least spell liquidity right liquid liquidity okay liquidity is resting orders okay and just like I mentioned beforehand we know that we have resting buy orders above highs and we have ing sell orders underneath lows okay so now we need to go into why do we use it okay so why do we use liquidity in the first place because we know that that is where reversals are going to happen or have the poo poo where we that is where we have the potential to have a reversal and that's the biggest thing that's why we aren't just pressing buy right when a low gets pushed underneath and that's why we aren't pressing sell right when a high gets pushed above right just understanding where liquidity lies that's just one step of the whole process or else we would be the worst traders in the world if we were doing that okay but why do we use it it's because it has the potential to reverse there so we want to Mark out pretty much every single draw on liquidity that we have within the market so that we can see hey price can potentially reverse off of this and with that in mind we are going to be able to catch the very tippy top of those new downtrends that get formed and with that in mind we're going to be able to catch the very itsy-bitsy round double cheed up bottom of those new uptrends that are going to form so why do we use it price has the PO we might as well put that in there potential to reverse at highs and lows within the market okay now that's just talking about liquidity liquidity itself is resting orders now let's talk about liquidity sweep so what does it mean when liquidity is actually swept that means those resting orders have been filled and we actually started that reversal process so let's talk about liquid sweeps I'll just are when those resting orders actually get filled and start a new trend either up or down B okay so what is liquidity liquidity is resting orders I'll go ahead and put I'll add on to this above highs and Below lows why do we use it because price has the potential to reverse at those highs and the those lows because of those resting orders that are above those highs and those lows and then what are liquidity sweeps liquidity sweeps are liquidity sweeps liquidity sweeps are when those resting orders actually get filled and start a new trend moving either up or down so now with that in mind let's show a couple examples of this within the chart and then I'm going to show you guys how you guys can actually create your own strategy to actually be able to take profitable freaking trades using this New Concept all right let's actually get into the freaking charts and let's show examples of where liquidity lies we'll we'll do two examples where liquidity is on the chart and trust me there's a million places where liquidity lies and then we'll also show liquidity sweeps and then from there I'm going to show you guys how to actually execute trades so that you can know and understand when liquidity is actually being swept or if the liquidity is not going to be used or not because I know a lot of people myself included sometimes will push above a high and obviously we don't want to just press sell but we need some sort of confirmation to understand like hey liquidity has actually been swept and we are going to start that reversal right now okay because again pressing sell at highs and pressing buy at lows that's like the worst strategy ever okay so we'll start off and we'll just it again price is fractal okay so there's liquidity on every single time frame that's the awesome thing about all of my confluences you can apply this to any sing any time frame that you want in the like ever okay there's liquidity on the weekly time frame there's liquidity on the monthly time frame I can literally show you an example of liquidity sweep right now on the monthly time frame okay right here look at this okay what do we have right here oh that's a low oh wait I don't have my magnet on that's a low what's this oh that's a low what happened the monthly time frame moved down swept liquidity and then what happened B run [ __ ] okay so that's just one example but let's first talk about identifying where liquidity is remember what what we said liquidity lies above highs and Below lows so when we're marking out draws on liquidity what do we do we literally just Mark out highs and lows and you're probably saying well there's highs and lows literally everywhere you're right but we we are going to get into how we can actually identify which draws and liquidity we want to use which draws and liquidity are going to be higher value for us when we start getting into the timing of all of this okay so just bear with me but for now let's practice and let's show where liquidity lies and remember remember lows what are they consisted of move down then it move up okay two Candlestick pattern okay highs what are they consisted of move up then a move down okay so what do we see here we see a move up then a move down boom that's a draw in liquidity we see a move down then a move move up oh that low that's a draw liquidity okay we see move up then a move down oh that high right there that's a draw liquidity move down then a move up oh that's a low boom we've already marked out a ton of draws on liquidity but as we can see right now like we moved past this High TJ are why didn't we reverse have you even been listening wow I literally switched the chart with that slam you haven't been listening numb nuts we're going to get into how you can actually take a trade on it a little bit down the line Timmy okay but again we can do this on literally any single time frame we want to understand where liquidity lies well it lies above highs and Below lows okay so high we have a move up then a move down right here we can see that a little sweepy sweepy okay we have a move down then a move up boom that's a low that's a draw liquidity we have a move down then a move up boom that's a low that's a draw on liquidity we have a move down then a move up boom that's a low that's a draw on liquidity okay so we know where liquidity lies it's above highs and Below lows we know how to Mark out highs and lows within the market but what we want to do now is be able to identify liquidity sweep so before I actually go in and show you guys like how we can see where liquidity sweeps are let's show a couple of examples of liquidity sweeps that have already happened where we can see like hey this liquidity thing it's pretty freaking for real okay so I showed you guys that monthly time frame example let's show you guys another example okay so I just spotted one I spotted one this is a perfect example right here within this move up right we're we're in an uptrend we break we we break structure off these highs right what do we have a high what do we see price do sweep work fill all these orders and then what happens price just rumbles on down Rumble freaking Mania okay let's show another example boom right here what do we have highs within the market we come up liquidity sweeper someone bring out the broom boom what happens Rumble Mania okay and again this happens on every single time frame look at look at this tell me this [ __ ] doesn't work what a high oh sweeper and then what literal monster [ __ ] to the downside okay couple examples okay and you're probably saying well this is just the 4our time frame we can find this on the 15minute time frame literally on every single time frame look at this literally literally like I have Aimbot with this [ __ ] High's right here and obviously obiously since this since this is on a lower time frame lower time frames hold higher power and obviously have smaller moves but we can see move up then a move down these highs sweep work move down let's find another example oh that's an example on the hourly we can go ahead and show that look at this we got a whole bunch of these lows low right here low right here low right here what happens sweep work move up this happens on every single time frame same thing right here look Boom come down low low sweep work move up plain and simple plain and freaking simple what's this right here sweep work move down okay but obviously you're probably thinking how the freak are we able to take trades off of this because it's super easy in hindsight to be like well duh this was a liquidity sweep we moved above a high and then made Moves down okay all right that's super easy to do going back into another little story time okay back when I traded that London session fake out strategy I would literally do what I was just showing you guys on the chart and I would be like oh my God I know that when it moves above a high or when it makes a big move up right when Market opens it's it's going to go down but I just don't know where to put it okay and I would literally just blindly press buy or sell right when those move moves down or up would happen which again probably not the best strategy but I was going going somewhere with that okay this obviously didn't end that well but it was a step in the right direction for the unprofitable Trader that I was at the time okay now you guys know much more than I did at the time now the final piece of the puzzle is just how to properly take trades off of liquidity sweeps so with that being said let's get right into it and we are going going to talk about session times when and where price typically sweeps liquidity let's get into this [ __ ] the very first thing that I want you guys to do is identify what session that you guys are trading right now at this point in time I am only trading the S&P 500 and NASDAQ so what session do I trade I trade New York session if you guys trade London session then awesome we are going to apply this to London session if you guys trade Asian session you're an idiot but sure we'll apply this to Asian session too Asian session just has really low volatility so I don't know why you B are going to be trading that but whatever whatever floats your boat I trade New York session so we are going to show examples from New York session on how to actually take trades so first and foremost what are you guys going to do and again this applies to every single session you guys are going to Mark out session open okay so for New York session session open is at 9:30 we're going to put that one there we had non-farm payroll on Friday so kind of like pretty ugly price action but we can still show examples from it okay so you guys are going to go ahead and put on Market open now once you guys do that for me and my strategy what I like to do is I like to Mark out High time frame or relatively High time frame draws on liquidity and remember what are those it's literally just highs and lows within the market so for me I typically just go into the 4H hour time frame and the hourly time frame and I Mark out the highs and lows so where are highs that we made during premarket okay so we have some 4our highs right here and we have some 4H hour lows right here and those are really just the only ones that I can mark down okay then let's go into the hourly time frame and let's mark out some hourly highs and lows that we have okay we have these hourly highs right here we have these hourly highs right here and we have these hourly lows right here cool so we have one two three forms of this is what's called buy side liquidity why because it's towards the buy side like where the buy orders are getting filled o pretty pretty pretty cool term that whip that one out on your friends instead of your dick next time that one will be nasty okay boom we got buy side liquidity and then we have sells side liquidity down here okay so from there once we do that that's typically all that I really need from the high time frames from there and just scale down into the low time frames okay so all of you guys are going to be using different confluences for this I have a full boot camp and a full free course and where I teach you guys like how and what confluences I use right now we're just talking about liquidity so there's going to be a couple Concepts that I may talk about within here that you guys don't fully understand if you guys do want to want to understand it you guys can go ahead and watch the free course or you guys can join my Mastermind where I literally teach all of you guys this stuff super in-depth for a month long it's live recordings with me where you guys can ask questions for literally an entire month and on top of that you guys get added to the Discord that's super freaking clouded and you guys get a free 100,000 funded funded $100,000 funded account for you guys so you guys can Kickstart your profitability journey if you guys want to do that there's going to be a link in the description for both the free course and for The Mastermind you guys can look into that if you guys don't understand these confluences that I'm talking about but without further Ado let's get into this so right when Market opens we see liquidity it got tough do we press sell no idiots you're going to get stopped out if you do that and as you can see price moves up do we see any sort of reaction off of this no so liquidity has not been swept bye-bye the next one this hourly high oh do we press up no whoa what just wow the chart was not liking how I was talking it talking to him okay we we push P liquidity what do we do do we press sell no we have to wait for confirmation because again when price pushes towards liquidity what does it what what does it have the potential to do it has the potential just the possibility to fill orders it doesn't mean it has to happen because if if it had to happen then the market would just forever move like this Bo above a high boop boop boop boop boop boop boop boop boop and that's just not how it works we we all know that okay so we move past this one one did anything happen no oh what happened to my face there we go fix my face boom nothing happened okay above these highs whoa why why do you not like me okay continuing we push above these highs and these highs do we get a reaction boom yes we do get a reaction okay from there once I see this big thick ass black whoa wow pause not thick ass black okay once I see this down candle off of these highs what am I thinking I'm thinking okay liquidity has potentially been swept so from there I scale down into the one minute time frame and again some of you guys might might not understand these Concepts but that's where the boot camp and the free course and The Mastermind is going to help you guys out what do I see I see a break of structure boom then what do I see I see price retrace into an imbalance fair value Gap if you guys want to get fancy with it and then what do I see I see sell orders coming out of that in fact I took this exact same trade I took this trade boom right here and I had my stop loss above these highs okay look at that awesome freaking trade and the awesome thing about liquidity too is that you can not only use it for entries but you can use it for exits why because the market moves off of liquidity so if we know that in order for the market to move it needs liquidity we can understand that hey when price reverses off of this where is Price going to go right after that to another draw on liquidity so if we go down and back into the 1 hour time frame this was a very not so sexy looking price action day but we can see move down then a move up and this move up was made right when Market opened but boom what is that it's a low what what rests underneath lows then what do you know price goes down hits take profit bang [ __ ] bang okay let's show another example of this let's go into to the S&P 500 Show an example on the S&P ski again what do we do we want to Mark out where session opens and again you guys can literally just type in when does London session open when does Asian session open when does New York session open and it'll give you a solid answer okay let's go ahead and do Wednesday's price action I have no freaking clue if W day Wednesday was good price action or not but I mean clearly it was look at that liquidity sweeper okay boom this is market open what do we do for me I go into the high time frames and I try and see hey where are the lows where are the highs we see that we have a 4our high right here boom we have a 4H hour low all the way over here okay on the hourly we have have move down then a move up and again not the best price action but we'll take it move down then a move up what's this another move down then a move up what's this another move down then a move up oh it looks like this was already taken out boom we'll put that there okay cool also highs on the hourly okay we have a move down then a move up right here that was actually already taken out during premarket so I'm going to go ahead and get rid of it we have a move up then a move down there's a high move up then move down and then another move up then I move down right here on the hourly so with that in mind we've marked out a bunch of draws on liquidity on our high time frame let's get down and dirty into this okay Market opens we immediately push underneath this do we see any reaction do we see any reaction off of this no so are we just going to blindly press by no Timmy we already went over this we push past these lows do we get a reaction no so we're not just going to blindly blindly press by we push past these lows do we get a reaction yes a glorious blue luscious huge Candlestick we got a reaction okay from there I see the reaction I scale down lower time frame beep boop and then all that we're looking for is actually confluences and you guys you guys can use whatever the [ __ ] confluences that you guys want you guys can use freaking I don't know like you guys can use indicators if you guys want or you guys can use my confluences I like using break of structure inverse fair value Gap fair value gaps order blocks and breaker blocks I know that maybe sounds like a foreign language to some of you guys but this [ __ ] really [ __ ] works so again if you guys want to learn about that I got you okay but what do we see that glor move up okay and then we chop around for a little bit but then what happens we get a one minute break of structure right here then what happens oh what's that little imbalance gets filled we see buy orders come out of it what do I do to buy orders coming out of a fair value Gap after a break of structure after we confirm that liquidity has been swept we go Long John [ __ ] Silvers on their ass boom and then again where do we take the trade up to draws and liquidity these highs these highs bang bang sniper okay we're smacking that [ __ ] okay so last but not least I'll do a quick little example on Forex okay how we can do this and we might as well do it on freaking London session why not I can't even remember when London session starts I'm be dead honest it's been so long since I've traded 4X I'm pretty sure it starts at like 3 Oh my days look bro I don't even I shouldn't even have to say it do you guys see this what is this it's a high what happens London session opens sweep [ __ ] aval bro tell me this [ __ ] doesn't work and I'm going to open up your [ __ ] okay I'm kidding I'm not going to do that that but I might if you tell me this doesn't work what do we have when Market opens we have highs Market opens sweep work scale down lower time frame does somebody smell that I smell a reaction boom move down we can literally just we we can literally just wait for like a five minute break structure we can wait for anything okay we see you move down what do I do jump down one minute time frame and again you guys can have whatever freaking confluences you guys want for this oh [Music] my I literally might start trading Forex again because of how hot this entry is tell me this [ __ ] doesn't turn you on move down then move up what do we it break of structure right here come on bro trading view doesn't want me to nut over the screen bro pissing me off boom we get that break of structure okay then what's that Timmy breaker block that's right I'm going to break your [ __ ] okay I'm kidding Timmy we get a move up into the breaker block reactions to the downside I'm literally I'm literally putting my entire account on this trade oh and then we didn't even Mark out any of the draws and liquidity to the downside lows right here we'll we'll literally just use that because this is just like a dick throbber of a trade tell me this [ __ ] doesn't work tell me this [ __ ] doesn't work literally the first freaking screen that we pull up on Forex is like the hottest freaking trade that we've seen in our entire lives liquidity sweeps ladies and gentlemen read it and freaking weep now you guys know exactly how to identify liquidity sweeps in the market how to take trades off of them this is a video that unprofitable me literally would have snuck a handy under the desk while watching back in EG because I really could have used this back when I was trading that London session fake out strategy and I hope it finds a few people who need it okay save this come back to this as many times as you guys need it until it's freaking ingrained in your head as always I love and appreciate you guys peace the [ __ ] out