Understanding Trading Strategies and Liquidity

you are trading you think you have the right direction in the market and all of a sudden the market does the exact opposite of what you expected it to do breaking Market structure doing all kinds of weird things you potentially breaking your monitor out of frustration now here are three steps to avoid just that and how we can actually make money from it so diving straight into it section one is Step number one in order for us to know what a liquidity sweep is we need to be able to define the words liquidity and sweep so we are on the same exact page so what is liquidity whenever we refer to liquidity in the chart that's going to look like a swing High and a swing low so on the right side of our screen we see this swing high right there which is just simply said again the three candle pattern 1 2 3 once that third candle closes it creates that swing high right there and the exact opposite is also a swing low so here at the bottom we also see that swing low right there three candle pattern that is Swing Low where liquidity is located so above swing highs we have liquidity and Below swing lows we also have liquidity because what is above swing highs and what is below swing lows trapped Traders so what does that actually look like in a chart we're going to go over over Forex crypto and indices SL Futures as well where right here what do we see what is this low that I'm currently marking that is a swing low right below that swing low is where we have trapped Traders there's liquidity there why is that because people are trying to get involved right there with their sell stop trying to catch the momentum in the market going lower but there's also other Traders because people that bought the market right there also would Place their stop- loss below swing lows right there so in other words the liquidity that we have below that swing low is orders orders in the market why because those orders can get matched with our own orders for every buyer there needs to be a seller for every seller there needs to be a buyer so if we and when I refer to we again central banks big institutions that want to buy right there what do they need they need willing sellers in the form of sell stop and that stop- loss of a buy order is also a sell stop so if those people get taken out then the central banks the bigger institutions that move the market can get involved right there with their buy orders that is liquidity and the same is said of course about swing highs this swing high right there is where we also trap Traders we trap traders in the form of buy stops right there but not only buy stops because we also have people that took a sell order right there and plac their stop loss Above That Swing high sitting right there those are both again buy orders and we can match that with sell orders so we sell to willing buyers well of course quote unquote willing because simply said they are just a Target and they are just getting trapped where it happens in the Forex Market on for example Euro US dollar it also happens on the crypto Market on bitcoin for example right here look at this high that we have to the left that's swing high is where we trap traders to then move to the opposite side now where it also happens on bitcoin and crypto it also happens on the indicis the Futures Market here on NASDAQ what are we actually seeing we see this right there being a swing low we come below it and we move to the opposite side the exact same same thing happens on every single Market every Market you can think of so the first step is currently quite clear right we understand what liquidity is and what it looks like that is important because otherwise we don't know what is actually sweeping of course that is where step two comes in because step two is what we need to understand we are sweeping liquidity then the second step in section two is what is a sweep the first step in understanding what a sweep actually looks like is that it starts with an FG fair value Gap moving into the liquidity then the second step is an opposite fair value gap an opposite FG so if we take a look at the right side of our screen we see this swing low that red line right there we would want to see a bearish fair value Gap coming into that liquidity right there and then on the next few candles we would want to see an opposite fair value Gap what is opposite of a bearish value Gap a bullish fair value Gap and that overall creates a sharp turn so taking a look again first at Euro US dollar then we had this swing low right there and we also had this swing high do you notice similar characteristics we first and the first step again of recognizing a sweep we have a fair value Gap going into the liquidity right there and the second step is we have a fair value gap on the opposite side meaning bearish value Gap we have a bullish fair value Gap small fa value Gap but that is a fair value Gap right there once this bullish fair value Gap right there has been created this overall section the fair value Gap the liquidity taken right there the bullish Gap is known as a sharp turn as an st as we like to call it a sharp turn is an extremely powerful reversal pattern where if we look at the swing High we see the exact same same thing right here we have the swing High we have a fair value Gap going into the swing high that is important right why is that there fake momentum there manipulation right there where people are getting trapped they think it's going higher but it's doing the exact opposite of what they expected it to do after that we see this opposite fair value Gap bullish fa value Gap bearish value Gap creating a sharp turn it's important to note that when we sweep a swing high or we sweep a swing low we don't stay above it for a very long period of time so a sharp turn again indicates that it's sharp right we're not messing around right here and staying above it to then continue lower no because when people are trapped right there they should not get a chance to be freed because that is where step three comes in in step three it's very important to understand that they need to be trapped so we don't stay long Above That Swing High when we sweep it and also the fair value bu Gap going lower should again be below that swing High the same for a swing low right here when we are sweeping That Swing Low we have the fair value Gap going into that liquidity into that swing low once we sweep and we come back above this swing high right there that is the exact spot where you would want to see a bullish Fair Val Gap be created so above the swing low right there and the bearish for Gap below the swing High then on Bitcoin in the crypto Market Market here we saw this high right there getting reached after that if we take a look at the daily time frame we see what we see this daily fvi Gap going into the liquidity afterwards we see this daily fvi Gap going out of the liquidity meaning First Step fair value Gap Second Step opposite fair value Gap right there that creates the overall sharp turn right there the reversal pattern that we are looking for now something that you might notice is when we sweep highs or we sweep lows we Wick it meaning that we only Wick right there into the liquidity pool and then we continue lower off of that so the pattern that we see here the up higher and the faga blower is the same thing happening on the lower time frame inside just a single Wick right there so inside this Wick right there if we go into the 1eh hour time frame then here we have the same exact week swing High we have the daily falap higher and the opposite F Val Gap right there creating a daily sharp turn now if we remove those gray boxes then what are we seeing here weekly swing high again we have bullish fair value Gap going into the liquidity bearish fair value Gap coming out of the liquidity so the long Wick we saw on the daily time frame was 1 hour sharp turn as well this is important to understand because you don't necess neily need to go into the lower time frame to then actually see a sweep happening because right here on NASDAQ we see this low right there getting swept as well but not your typical fair value Gap in Fair Value Gap out because here on NASDAQ we see again the sweep but not your typical step number one fair value Gap then the opposite fair value Gap then the sharp turn well yes it is there but it's a little bit high right there so this Wick already told us enough it already told us exactly what we would want to see because this wick on the one minute time frame is what that is simply again what we demanded off price the fair value Gap coming into the liquidity and the fair value Gap coming out of the liquidity right there the opposite fair value Gap creating a sharp turn here on the one minute time frame which was also seen by the long wick on the 15minute time frame so now we know what liquidity is what a sweep looks like as well so the third step is right here section three what is the Target and how can we now capitalize on that exact move so the target is the opposing liquidity meaning the swing load that we see on the left side of our screen indicated by the green line right there is getting swept and when we sweep That Swing Low the opposing liquidity is just the opposite liquidity meaning swing low what is the opposite a swing high so the red line that we are seeing right there is the swing high that is the opposing liquidity the first swing high that we encounter so on Euro US dollar once we sweep this swing low right there we have the fvv Gap going into the liquidity the opposite FV Gap right there creating the sharp turn the opposing liquidity is the first swing high that we actually encounter what is the first swing high this right there after the swing High we see the same thing happen again which is very interesting because we have a fair value Gap into that we create the sharp turn again and that sharp turn right there is where we now Target the opposing liquidity which in that lag higher was this swing low sitting right there and that is our Target now before we go into how to capitalize on this how to make money from it we need to understand what the targets are on bitcoin and NASDAQ as well so looking at Bitcoin the swing high right there is a weekly swing High actually so what is the opposing liquidity based on the weekly right here well that is the swing low in the form of this right there that is our opposing liquidity so on The Daily go into the daily and we Mark out our sharp turn and that sharp turn eventually Targets this swing low sitting right there that is the first area from the opposing liquidity swing High to swing low and here on NASDAQ we are sweeping this swing low right there in this lag lower what is the opposing liquidity it is indeed you guessed it That Swing high sitting right there that is the first Target and afterwards we can see we are not sweeping this high right we don't have the characteristics right there we don't have those steps of sweeping that high so what do we do we target the next highs and eventually this high right there and again how we can see that is all things we are going to go over in next episodes as well so we understand what the Target now is now perfect we understand the three steps to be able to actually make money from this in section four we are going to go over what are the three steps and how can we now actually get involved and make money off of that First Step being liquidity we understand again on the right side of our screen we see this green line for example we understand that is liquidity once we come into that and we create a sharp turn for VAP into the liquidity for VAP out of the liquidity we target the opposing liquidity that's the third step those are the three steps simple steps to be able to identify a sweep once we sweep this swing low on Euro US dollar we have the sharp turn we create fair value gaps going higher now we do not come into those fair value gaps before we actually reach the draw liquidity meaning we reached the opposing Target right there the opposing liquidity before we actually came back into a fair value Gap now what do we see when we sweep this swing High We again have that sharp turn the bearish fair value gap of that sharp turn is exactly what we can continue lower from so what you can do is here on the 4 Hour this in itself is already an entry to continue lower but in that 4our fair value Gap right there what is that that is where you can go into the five minute time frame into a time frame of your liking and you can see the exact same thing and that then becomes your entry pattern and that is exactly what we are going to go over as well in next videos so in itself this is already an entry to Target the opposing liquidity sitting right there so if you're a swing Trader then this right there is a great opportunity for you to get involved if you're a day trader or scalper even then that 4our V Gap right there would allow you right now to go into the lower time frame to look for your entry pattern in that 4our value Gap all right so on bitcoin we were sweeping this liquidity that high targeting the opposing liquidity in the form of that low right there on the daily time frame what did we see we saw a sharp turn this sharp turn right there leaves behind again that bearish fap in itself that is already an entry to continue lower from if you are a position Trader for example great entry if you do not want to position trade and you want to be a day trader a scalper then what is that then this right here this daily fi Gap is right now your PD array your premium array to go into the 15 minute time frame the 5 minute time frame to look for your entry pattern to continue lower off of that where then the target Still Remains this target right there the opposing liquidity and here on NASDAQ what are we seeing we see this swing low getting swept right there now this is a little bit more difficult right or a little bit more different let's call it that way the most simple thing you can do right here is wait for a new 15minute fair value Gap higher for example that that fair value Gap to enter off of that or even the next fair value Gap sitting right there or the order block that we have right there covering the swing low to continue higher off that to Target the opposing liquidity in the form of that high that swing high right there simply said following the fair value gaps higher then eventually we see we are not sweeping this high so we are continuing higher and the next Target can again be this swing high right there now just for your information if it does intrigue you every single thing that we went over right here was either called in the free Sunday weekly forecast on this YouTube channel or it was called in a live session in the Discord in the money making team which is of course on Ario doio what I would love for you to do is study this and feel free for example to go over the dollar right there the dxy to see what happened in this exact week and once you've studied that we can move on more easily to the next episode as well all right perfect thank you

you are trading you think you have the right direction in the market and all of a sudden the market does the exact opposite of what you expected it to do breaking Market structure doing all kinds of weird things you potentially breaking your monitor out of frustration now here are three steps to avoid just that and how we can actually make money from it so diving straight into it section one is Step number one in order for us to know what a liquidity sweep is we need to be able to define the words liquidity and sweep so we are on the same exact page so what is liquidity whenever we refer to liquidity in the chart that's going to look like a swing High and a swing low so on the right side of our screen we see this swing high right there which is just simply said again the three candle pattern 1 2 3 once that third candle closes it creates that swing high right there and the exact opposite is also a swing low so here at the bottom we also see that swing low right there three candle pattern that is Swing Low where liquidity is located so above swing highs we have liquidity and Below swing lows we also have liquidity because what is above swing highs and what is below swing lows trapped Traders so what does that actually look like in a chart we're going to go over over Forex crypto and indices SL Futures as well where right here what do we see what is this low that I'm currently marking that is a swing low right below that swing low is where we have trapped Traders there's liquidity there why is that because people are trying to get involved right there with their sell stop trying to catch the momentum in the market going lower but there's also other Traders because people that bought the market right there also would Place their stop- loss below swing lows right there so in other words the liquidity that we have below that swing low is orders orders in the market why because those orders can get matched with our own orders for every buyer there needs to be a seller for every seller there needs to be a buyer so if we and when I refer to we again central banks big institutions that want to buy right there what do they need they need willing sellers in the form of sell stop and that stop- loss of a buy order is also a sell stop so if those people get taken out then the central banks the bigger institutions that move the market can get involved right there with their buy orders that is liquidity and the same is said of course about swing highs this swing high right there is where we also trap Traders we trap traders in the form of buy stops right there but not only buy stops because we also have people that took a sell order right there and plac their stop loss Above That Swing high sitting right there those are both again buy orders and we can match that with sell orders so we sell to willing buyers well of course quote unquote willing because simply said they are just a Target and they are just getting trapped where it happens in the Forex Market on for example Euro US dollar it also happens on the crypto Market on bitcoin for example right here look at this high that we have to the left that's swing high is where we trap traders to then move to the opposite side now where it also happens on bitcoin and crypto it also happens on the indicis the Futures Market here on NASDAQ what are we actually seeing we see this right there being a swing low we come below it and we move to the opposite side the exact same same thing happens on every single Market every Market you can think of so the first step is currently quite clear right we understand what liquidity is and what it looks like that is important because otherwise we don't know what is actually sweeping of course that is where step two comes in because step two is what we need to understand we are sweeping liquidity then the second step in section two is what is a sweep the first step in understanding what a sweep actually looks like is that it starts with an FG fair value Gap moving into the liquidity then the second step is an opposite fair value gap an opposite FG so if we take a look at the right side of our screen we see this swing low that red line right there we would want to see a bearish fair value Gap coming into that liquidity right there and then on the next few candles we would want to see an opposite fair value Gap what is opposite of a bearish value Gap a bullish fair value Gap and that overall creates a sharp turn so taking a look again first at Euro US dollar then we had this swing low right there and we also had this swing high do you notice similar characteristics we first and the first step again of recognizing a sweep we have a fair value Gap going into the liquidity right there and the second step is we have a fair value gap on the opposite side meaning bearish value Gap we have a bullish fair value Gap small fa value Gap but that is a fair value Gap right there once this bullish fair value Gap right there has been created this overall section the fair value Gap the liquidity taken right there the bullish Gap is known as a sharp turn as an st as we like to call it a sharp turn is an extremely powerful reversal pattern where if we look at the swing High we see the exact same same thing right here we have the swing High we have a fair value Gap going into the swing high that is important right why is that there fake momentum there manipulation right there where people are getting trapped they think it's going higher but it's doing the exact opposite of what they expected it to do after that we see this opposite fair value Gap bullish fa value Gap bearish value Gap creating a sharp turn it's important to note that when we sweep a swing high or we sweep a swing low we don't stay above it for a very long period of time so a sharp turn again indicates that it's sharp right we're not messing around right here and staying above it to then continue lower no because when people are trapped right there they should not get a chance to be freed because that is where step three comes in in step three it's very important to understand that they need to be trapped so we don't stay long Above That Swing High when we sweep it and also the fair value bu Gap going lower should again be below that swing High the same for a swing low right here when we are sweeping That Swing Low we have the fair value Gap going into that liquidity into that swing low once we sweep and we come back above this swing high right there that is the exact spot where you would want to see a bullish Fair Val Gap be created so above the swing low right there and the bearish for Gap below the swing High then on Bitcoin in the crypto Market Market here we saw this high right there getting reached after that if we take a look at the daily time frame we see what we see this daily fvi Gap going into the liquidity afterwards we see this daily fvi Gap going out of the liquidity meaning First Step fair value Gap Second Step opposite fair value Gap right there that creates the overall sharp turn right there the reversal pattern that we are looking for now something that you might notice is when we sweep highs or we sweep lows we Wick it meaning that we only Wick right there into the liquidity pool and then we continue lower off of that so the pattern that we see here the  up higher and the faga blower is the same thing happening on the lower time frame inside just a single Wick right there so inside this Wick right there if we go into the 1eh hour time frame then here we have the same exact week swing High we have the daily falap higher and the opposite F Val Gap right there creating a daily sharp turn now if we remove those gray boxes then what are we seeing here weekly swing high again we have bullish fair value Gap going into the liquidity bearish fair value Gap coming out of the liquidity so the long Wick we saw on the daily time frame was 1 hour sharp turn as well this is important to understand because you don't necess neily need to go into the lower time frame to then actually see a sweep happening because right here on NASDAQ we see this low right there getting swept as well but not your typical fair value Gap in Fair Value Gap out because here on NASDAQ we see again the sweep but not your typical step number one fair value Gap then the opposite fair value Gap then the sharp turn well yes it is there but it's a little bit high right there so this Wick already told us enough it already told us exactly what we would want to see because this wick on the one minute time frame is what that is simply again what we demanded off price the fair value Gap coming into the liquidity and the fair value Gap coming out of the liquidity right there the opposite fair value Gap creating a sharp turn here on the one minute time frame which was also seen by the long wick on the 15minute time frame so now we know what liquidity is what a sweep looks like as well so the third step is right here section three what is the Target and how can we now capitalize on that exact move so the target is the opposing liquidity meaning the swing load that we see on the left side of our screen indicated by the green line right there is getting swept and when we sweep That Swing Low the opposing liquidity is just the opposite liquidity meaning swing low what is the opposite a swing high so the red line that we are seeing right there is the swing high that is the opposing liquidity the first swing high that we encounter so on Euro US dollar once we sweep this swing low right there we have the fvv Gap going into the liquidity the opposite FV Gap right there creating the sharp turn the opposing liquidity is the first swing high that we actually encounter what is the first swing high this right there after the swing High we see the same thing happen again which is very interesting because we have a fair value Gap into that we create the sharp turn again and that sharp turn right there is where we now Target the opposing liquidity which in that lag higher was this swing low sitting right there and that is our Target now before we go into how to capitalize on this how to make money from it we need to understand what the targets are on bitcoin and NASDAQ as well so looking at Bitcoin the swing high right there is a weekly swing High actually so what is the opposing liquidity based on the weekly right here well that is the swing low in the form of this right there that is our opposing liquidity so on The Daily go into the daily and we Mark out our sharp turn and that sharp turn eventually Targets this swing low sitting right there that is the first area from the opposing liquidity swing High to swing low and here on NASDAQ we are sweeping this swing low right there in this lag lower what is the opposing liquidity it is indeed you guessed it That Swing high sitting right there that is the first Target and afterwards we can see we are not sweeping this high right we don't have the characteristics right there we don't have those steps of sweeping that high so what do we do we target the next highs and eventually this high right there and again how we can see that is all things we are going to go over in next episodes as well so we understand what the Target now is now perfect we understand the three steps to be able to actually make money from this in section four we are going to go over what are the three steps and how can we now actually get involved and make money off of that First Step being liquidity we understand again on the right side of our screen we see this green line for example we understand that is liquidity once we come into that and we create a sharp turn for VAP into the liquidity for VAP out of the liquidity we target the opposing liquidity that's the third step those are the three steps simple steps to be able to identify a sweep once we sweep this swing low on Euro US dollar we have the sharp turn we create fair value gaps going higher now we do not come into those fair value gaps before we actually reach the draw liquidity meaning we reached the opposing Target right there the opposing liquidity before we actually came back into a fair value Gap now what do we see when we sweep this swing High We again have that sharp turn the bearish fair value gap of that sharp turn is exactly what we can continue lower from so what you can do is here on the 4 Hour this in itself is already an entry to continue lower but in that 4our fair value Gap right there what is that that is where you can go into the five minute time frame into a time frame of your liking and you can see the exact same thing and that then becomes your entry pattern and that is exactly what we are going to go over as well in next videos so in itself this is already an entry to Target the opposing liquidity sitting right there so if you're a swing Trader then this right there is a great opportunity for you to get involved if you're a day trader or scalper even then that 4our V Gap right there would allow you right now to go into the lower time frame to look for your entry pattern in that 4our value Gap all right so on bitcoin we were sweeping this liquidity that high targeting the opposing liquidity in the form of that low right there on the daily time frame what did we see we saw a sharp turn this sharp turn right there leaves behind again that bearish fap in itself that is already an entry to continue lower from if you are a position Trader for example great entry if you do not want to position trade and you want to be a day trader a scalper then what is that then this right here this daily fi Gap is right now your PD array your premium array to go into the 15 minute time frame the 5 minute time frame to look for your entry pattern to continue lower off of that where then the target Still Remains this target right there the opposing liquidity and here on NASDAQ what are we seeing we see this swing low getting swept right there now this is a little bit more difficult right or a little bit more different let's call it that way the most simple thing you can do right here is wait for a new 15minute fair value Gap higher for example that that fair value Gap to enter off of that or even the next fair value Gap sitting right there or the order block that we have right there covering the swing low to continue higher off that to Target the opposing liquidity in the form of that high that swing high right there simply said following the fair value gaps higher then eventually we see we are not sweeping this high so we are continuing higher and the next Target can again be this swing high right there now just for your information if it does intrigue you every single thing that we went over right here was either called in the free Sunday weekly forecast on this YouTube channel or it was called in a live session in the Discord in the money making team which is of course on Ario doio what I would love for you to do is study this and feel free for example to go over the dollar right there the dxy to see what happened in this exact week and once you've studied that we can move on more easily to the next episode as well all right perfect thank you

Transcript for:Understanding Trading Strategies and Liquidity

Transcript for:
Understanding Trading Strategies and Liquidity