This content explains a systematic trading strategy centered on understanding and utilizing market liquidity to identify high-probability trade setups and improve win rates. It emphasizes that institutions need significant opposing liquidity to enter trades with minimal slippage, and traders can leverage this by identifying where this liquidity resides.
Mind Map
Cliquer pour agrandir
Cliquez pour explorer la carte mentale interactive complète
if you can Master liquidity Concepts you
will drastically boost your win rate
find big riskable trades and Bank
consistent profits in this video I will
share a few critical points about
liquidity that most YouTube videos Miss
they just draw liquidity all over their
charts and they say you know this is why
price went Here There and Everywhere and
it's just super discretionary and pretty
useless they don't give you a repeatable
and systematic process that you need to
use in your trading they draw all of
these fancy liquidity schematics but on
their own let's be honest do they
actually help you make money no
consistent actions equals consistent
results you are just pissing in the wind
until you have a repeatable process to
rely on so I'm going to strip away all
of the noise and show you what actually
matters in this video we will cover the
critical rules that have now helped
countless of our members get funded and
Bank their first ever profit splits by
using the power of mechanical strategies
so this video is going to explain my
overall trading strategy what is
liquidity how to mechanically identify
liquidity pools how to spot
institutional training acity liquidity
inducement how to trade high probability
liquidity zones how to avoid liquidity
traps so you can start taking advantage
of them instead and how to enter and
exit from Maximum profit high and low
resistance liquidity and the advanced
liquidity cycle so before we dive into
the specifics of the liquidity Concepts
first you need to understand my overall
strategy philosophy so my entire
technical strategy is based around the
idea of trying to identify where the big
money is entering and exiting the market
and then trying to trade in line with
that so first I use Market structure and
that gives me my directional bias once I
know the direction I want to trade in I
then use supply and demand zones to help
me locate where I'm going to enter that
trade idea and then finally I use
liquidity to help me time and refine
that idea so I essentially use three
main time frames my higher time frame my
medium time frame and my lower time
frame with my higher time frame I just
want to know are we currently in the pr
Trend run phase or are we in the higher
time frame pullback phase okay that's it
step two my medium time frame I want to
know where is my immediate directional
bias so if my M15 chart is bearish that
is the direction I want to trade in for
the session and also that is the time
frame I use for my zones for my pois
okay so my medium time frame gives me me
gives me my immediate directional bias
and the zones are where I need to trade
from Once I have my directional bias so
I.E the higher time frame pull back is
complete my median time frame has now
shifted bullish therefore the higher
time frame pull back is now finished so
now I want to follow the bullish medium
time frame until it takes out the high
time frame week high okay now if you
want to understand how I fully use
Market structure supply and demand and
my entire strategy building it from the
ground up click the link in the bio and
we have a full free training video
series for you where we cover everything
from end to end including how to build a
trade plan back testing Market phases
all of the advanced stuff sign up in
there it's completely free and you'll
take a ton of value from it so once
you've identified your directional bias
so the M15 is now bullish we want to be
looking for catching that higher low to
now Target the continued bullish move
all the way up to that higher time frame
High okay we have our supply and demand
zones and now we use our liquidity
Concepts to refine those zones and to
know what requirements we need to see
when price gets there to increase our
strike rate to increase our risk reward
so that's what we're going to cover in
this lesson today so what actually is
liquidity well in its most simple terms
liquidity is just how much supply and
demand there is in a market at every
price level on the left here we have a
very liquid market so you can see that
every single price level there is a lot
of volume on both sides of the market
whereas in an IL liquid Market there
isn't right there's a lot less volume at
each price level some price levels there
might not be any volume right now in
trading every time you take a trade
there must be an equal and opposite
order for you to transact with otherwise
a trade can't take place so if you're
trading an IL liquid market and imagine
you're a big guy right I mean these are
madeup numbers but imagine you're
putting a lot of volume through the
market and you want to buy $700,000
worth of whatever the asset this is but
there's only $500,000 at the current ask
price if you buy that price is going to
have to shoot all the way up to this
price level to completely fill your
order right so in an IL liquid Market
the market is going to move a lot
quicker and that means that if you're a
big guy and you're getting involved
you're going to get a lot of slippage
because your order is not going to get
filled up all the way up here when
you're trying to buy down here at the
current market price PR so before we're
about to dive into kind of these fancy
technical liquidity Concepts get your
head around this the big guys need a ton
of opposing liquidity for them to trade
against in order to reduce the amount of
slippage they will get in the market
okay so this is a massive clue of now
what we need to try and identify on our
charts to look for where are these big
liquidity pools going to be so if you
look at any Candlestick chart right at
every single price level here there's
going to be a ton of supply and demand
on either side of the market Okay so how
do we now refine that to identify where
the big pools of liquidity are going to
be where institutions can potentially be
looking to trade against that so we want
to identify the areas on our price
charts where we think there is going to
be large pools of resting available
liquidity for institutions to use okay
so we assume that there is liquidity
behind every structural high and low in
the market now that can come come in
many forms as it's shown on the chart
here but essentially the more
significant that higher low we can
assume the more available liquidity
there will be behind it now there's a
lot of sort of discretionary ways that
this can appear you got trend lines
equal highs and lows you can have you
know session range liquidity say with
the Asian session range previous day
highs and lows right there's lots of
different ways that Traders like to use
and that's why we you'll seeing other
YouTube videos Traders will just draw
liquidity everywhere now whilst that
might be factually true how does it help
you with your trading right you want to
make it as systematic refined and
mechanical as possible so what I would
advise to you when you're starting out
is just focus on something like the
Strong high and low concept because this
is extremely mechanical and simple to
identify now Behind These highs we
assume that there is buy side liquidity
and Below these lows we assume there is
sell-side liquidity okay now why do we
get these liquidity pools forming Behind
These structural points in the market
well that's where the concept of
inducement comes in so inducement is a
thing that persuades or leads someone to
do something so in trading what that
essentially means is that patterns in
the market will encourage enourage
Market participants to trade at certain
levels and what that does is it
generates available liquidity for the
big guys to use to fill their positions
okay so for instance imagine you get
equal lows in the market these double
bottoms what does that form it forms a
support level that Traders might want to
trade so if they're buying at that
support level where they're going to
place their stop loss they're going to
place it below the lows okay so that
generates sells side liquidity likewise
people might view that double bottom
actually as a bare flag and they want to
sell the Breakout of that right so more
sell-side liquidity generated below
those lows or for instance you get a low
that breaks a high Traders now see the
trend as going to the upside so they now
want to buy Here hoping that that
bullish Trend will continue so if they
buy there where is a stop loss going to
be it's going to be below the low and
that generates sell-side liquidity you
then get the opposite for those bearish
patterns right generating buy side
liquidity above the high so again what
are we doing here the institutions need
opposing liquidity to fill their orders
so if you look look for these patterns
to appear in areas in your chart where
you're expecting a certain direction to
play out I.E if you identify a high
probability Supply Zone and you start to
see those structural highs form in front
of it then we know there is buy side
liquidity right for the big guys to sell
against right they need that opposing
liquidity to enter the market short with
minimal slippage so the key here is
identifying inducement that generates
the available liquidity for instance
ustion to use in front of a POI right
can increase the probability of it
holding and for Price playing out in
that direction that you're anticipating
so this is a powerful concept when you
understand it but on its own it's pretty
useless like anything in trading you
need to combine it with all of your
other Confluence to build a portfolio of
evidence to take a high probability
trade so now we understand what
liquidity is where we can find it on our
charts why institutions need it but now
how can we use all of that to actually
make money if I can simplify it for you
there's two main ways we use liquidity
one is in the past okay so we look for
where sweeps have already occurred to
signal that institutional activity may
have happened there and then we use it
for the Future Okay so identifying where
is the available liquidity to anticipate
if they're going to enter in those same
places in the future so the first part
is where have they previously entered
and that's where the concept of
liquidity sweep zones come into play
okay so if you find a supply and demand
Zone that to liquidity in the creation
of the zone that can signal that there
was institutional backing in that zone
okay why what is the logic and theory
behind this well if we assume that there
is buy side liquidity behind a high that
means that institutions can use that to
sell against right to fill their orders
with minimal slippage in the creation of
this Zone okay so there different ways
in which this uh in which this can form
but if we see that zone that took a low
right in the creation of that demand
Zone that is potentially where being
firers have used the sell side liquidity
to enter to get in long okay so now you
can use this as a filter to look for
higher probable zones within your
trading now we know that in a bullish
Market lows are strong because they
create those highs they break structure
to the upside now what you will often
notice is that those strong lows in a
bullish Market are created through
sweeps of liquidity why because
institutions need the sell side
liquidity below those lows in order to
fill their long positions to to fuel
that next prot Trend run to the upside
okay so if you look here you can see
that every time a swing pullback is
complete it happens through a strong
liquidation right we take that liquidity
in the leg to the left we even get a low
here that breaks the high okay
generating strong available liquidity
below that low the big guys can then use
that to get long and fuel that Next
Movement to the upside okay so you can
just see it again every low takes
liquidity when it's formed again we come
down we take liquidity in the formation
of the Zone if I zoom in here a bit
right sometimes s it's a bit more subtle
but we get this Supply to demand flip it
takes liquidity to fuel that next move
up okay not quite enough to break
structure we come down grab the
liquidity into this POI if we get that
next move into the upside and you'll see
that time and time again we get the
liquidity sweep before we get that Next
Movement to the upside here we again
equal lows into our POI increasing the
probability that that next strong piece
of structure is going to form rinse and
repeat so identifying zones that will
form through sweeps of liqu
is a great signal that there was
institutional involvement there so when
you're trying to refine what potential
zones you want to trade from in the
future they are great things to look at
so that's looking in the past but now we
look into the future and go where is
there available liquidity that
institutions May potentially use for us
to then try and trade in line with that
direction let's take a look at that so
sweep zones show us potentially where
they entered previously the concept of
inducement will show us where the
available liquidity is for them to use
if they going to enter again okay so if
there is no available liquidity to the
left there's no structural load to the
left and if there's no structural lows
built to the right there's no available
liquidity where is the available
liquidity it's going to be behind the
Zone itself okay and that's very often
when you will see zones fail okay so
here in example no liquidity to the left
nothing built to the right the only
available liquidity for the big guys to
use to sell against is behind the POI
itself and that's where you see that
trap and the zone get swept now on this
occasion right the top Zone doesn't have
any liquidity to the left and nothing to
the right so now the available liquidity
is behind that zone and we can use that
sell side liquidity or the institutions
will be right to get long in that
previous Zone and that increases the
probability of this being the POI that
breaks out okay we can see that here
this Zone down here had no liquidity to
the left nothing built to the right so
that ends up inducing buy side liquidity
for the extreme POI that's the one that
holds and then we go okay so that's if
we have available liquidity to the leg
in the left or if there isn't available
liquidity in the legs to the left we can
see it built to the right okay here no
immediate structural low in the leg to
the left so we see those clear equal
lows that also broke structure built to
the right now there's available
liquidity for those long positions to be
filled or ideally you get it both on the
left and on the right and then you get a
high probable POI now you need to
systemize this you need to know exactly
what is mechanical definition for where
you can see inducement build okay you
need to have mechanical rules for that
if you're going to use inducement and
the legs left how near to your Pei does
that need to be you need to have
Mechanical Solutions for that when is it
relevant when is it not relevant on what
time frames is it relevant for you can
you use it on your lower time frame what
phases of the market okay these are all
things that you need to make as
systematic as possible and that's what
we have done with our trade plans okay
that we have with our community they
know what to do in every scenario and
they have exact mechanical rules for
this otherwise you can end up just
justifying every single move in the
market inconsistent actions inconsistent
results okay we need to systemize it
okay so quick example here on the chart
right we are clearly in the bearish
market now as price is coming into this
Zone here what do we notice straight
push no liquidity in the leg okay no
strong liquidity is built in the right
none of these highs break lows so what
ends up happening the only available
liquidity is behind the Zone itself okay
we see this high and this High get swept
and eventually that produces enough buy
side liquidity okay for the big guys to
sell against to fuel that Next Movement
to the downside right we get a new
structural range to work within okay
cool we want to try and capture those
shorts we've got one zone here and then
the extreme Zone here what do we look
for with our liquidity crime uh
liquidity requirements that's a straight
push there's no structural High here in
the leg nothing is built significant to
the right with the rules that we use so
where is the available liquidity it's
behind the Zone itself that ACC as the
inducement for the extreme Zone and
eventually we get the move that goes to
the downside okay and get some
corrective Asia price action coming into
London next day right let's zoom in we
can see here nice supply chain forming
but there's no available liity in the
leg so what film builds to the right we
have a high that breaks a low okay and
what does that do that induces buy side
liquidity behind that strong high now
increasing the probability that there's
going to be institutional shorting
potentially from here to fuel that Next
Movement to the downside okay we're get
another break of structure here's our
new structural range we're working
within okay now we have a Zone here but
what do you notice there is a straight
push here right there's no available
liquidity in this leg so what do we need
to see we need to see strong liquidity
built in the pullback right to increase
the probability that this Zone May hold
otherwise where is the available
liquidity it's behind the high itself so
what ends up happening that high ends up
breaking okay and then there's enough
fuel to fuel the move to the downside
okay no liquidity to the left nothing
built to the right that high gets swept
now the big guys can get short
potentially using that buy side
liquidity to fuel that next leg you
starting to see now how all of that
logic starts to tie together to help you
formulate trade ideas to help you
increase the probability of what you
expect but again you need to combine
this with all of the elements that you
use in your trading it is not going to
solve your trading on its own so how can
we start to take advantage of these
concepts with our entry models now
imagine you've done all of your high
time frame analysis and you found a
really strong bullish idea okay you have
your M15 Zone and now you're on the M5
and you want to look for your entry
model okay so entry model one would be
you wait for your strong liquidation to
occur well what do we have this low here
broke this high so it's broken some
structure that now gives us strong
available sells side liquidity below
that low potentially for institutions to
use coming into our POI so now we can
refine the POI to potentially increase
our uh risk to reward right to this Zone
Here and Now perhaps you want to set
your limit order here and that would be
an example of Entry model one okay and
you would look for price to tag you
in let's see okay and you will now be in
the trade okay so that would be how you
would approach entry model one entry
model two is you're not going to leave
your limit order there you're going to
wait for the market to start to move
back in your favor and this is where you
can Trail the candles okay once the
liquidation occurs you Trail them down
and you're looking for price to take you
in but again you need to have very
mechanical rules on how you do this how
do you SI your trade when does the trade
idea get invalidated okay you need to
know exactly that and also sometimes
this liquidation isn't going to be very
near your POI so you need to have a
mechanical way to decide how near that
needs to be okay so that would how you
how you do entry model 2 and then you
get tagged into the trade okay but again
the downside of this is price can
mitigate here and push down lower we
don't know that so that's where entry
model 3 comes in if you prefer that
where you wait for the market to clearly
shift okay then we get the movement to
the upside so now you would look for
price to pull back in in whatever way
you want to do that okay so either you
can look to enter on that extreme demand
Zone some of you might want to use
Fibonacci as a case so you would have
like the 618 whatever you want to use
some of you might you want to use fair
value gaps whatever that is this entry
model is great for the amount of
confirmation that you get but here's the
risk right let's say you're entering on
the extreme price doesn't always pull
back to tag you in and you can just miss
out okay so you need to pick the
approach that works best with your
psychology and the one that you find you
have most success with over time test
test and test some more now the concept
of high and low resistance liquidity can
be really useful just for us to
anticipate how price potentially May
behave okay so imagine you have a
bearish market now when price starts to
pull back if you see that it just leaves
a lot of corrective lows and there was
no liquidity sweep once that pullback
forms that's often a very good
indication that the overall pullback
won't be that deep because Institution
have not had the opportunity right to
use the cell sign liquidity that's
generated below those lows in order to
get long and fuel that deeper move so
usually when you see that a low form
like this price won't pull back that
deep and it will come into a less well
priced Zone okay and then that's usually
if you get like a strong liquidation
around this POI you can trade it with
more confidence even though there's
cause for higher prices because we now
have that resting liquidity to Target to
the downside right that low resist
resistance liquidity whereas if a low
forms with a strong liquidation often
not always often that can be a sign
right that this move was generated with
that strong institutional activity using
that sell side liquidity to get long and
that's very often where you'll see a
much deeper pullback and therefore you
can use that as information to
potentially not trade this POI or to
only expect a quick reaction and expect
price to come up to those more premium
levels before we see that movement there
to the downside so in this example we
are in a clear bearish Trend we're
pretty oversold to the downside now
there's no strong liquidation here and
price is pulling back pretty
correctively okay leaving a lot of rest
in liquidity for price to Target now
when I see that type of price action
that's a pretty good indication that
we're not going to see a very deep
pullback in most occasions right so that
means you can be a bit more aggressive
with your shorts shorting at more
discount prices right now obviously
again this concept on its own is not
that useful you need to combine it with
everything else in your analysis right
obviously if we're coming off a
beautiful high time frame level things
like that then you know use a bit of
Common Sense there so we see price start
to push to the downside and chop around
that low now what happens here okay is
we if I zoom in we sweep or not we price
sweeps this significant swing low here
right and we get a liquidation of that
low but what also do we get in the
immediate price action this low here
broke this high so it's somewhat of a
strong low giving us another uh you know
inducing even more sell side liquidity
below this low and this low here and now
if we start to see price shift to the
upside we can start to anticipate that
institutions are now going to use that
to fuel a much deeper pullback okay um
and this is just a really good concept
that you can use to now anticipate how
price is likely to behave right so if
you see that you can now obviously see
that this is likely going to be a trap
and anticipate we can can play a much
deeper swing pullback because there is
now available liquidity for that to
occur so now to bring everything
together that we've just learned we're
going to look at one of these sort of
schematics that was taking the piss out
of at the start but I'm going to try and
simplify it for you and pay attention to
what actually matters in your trading
okay so imagine we are in a clear
bearish swing Trend really what we want
to be doing is trying to capture the
shorts here to get that lower high for
that next leg right so as price is
pulling up to two of our main pois here
now we want to be thinking about
liquidity okay if there is no available
liquidity in the leg to the left we want
to see it built to the right none of
these highs break structure so we don't
have any liquidity Bill okay people
might get short here which is fine price
then shift structure to the downside
taking out this liquidity below these
lows okay what is that going to do
that's going to induce people to now
want to sell from here right because
they've seen that Mitigation Of Supply
they've seen structure shots to shift in
their favor so what are they going to do
they're going to want to get short
they're going to get short here stop
loss is above the highs right so what is
that doing it's inducing buy side
liquidity above that okay that now
institutions can potentially use to get
short once price wipes out that
liquidity right so all of that liquidity
build above a high that broke a low
above these equal highs where other
people are now selling the double top
okay and now we have that we have the
induced liquidity I get rid of these
lines into our extreme level so this can
be that first potential entry in which
you want to get short okay maybe you
want to wait for a bit more Confluence
so what can you wait for you can wait
for Market structure to shift back in
your favor okay so now order flow is
bearish and now you have a higher
probable POI to trade from right
obviously there might be multiple pois
but use your knowledge no liquidity to
the left no liquidity to the right where
is the available liquidity it's behind
the high itself this now becomes a
higher probable area to short okay what
do you have you've got double bottoms
here for liquidity to Target okay
because before that what you'll have is
people will see this low break this High
okay they don't understand multitime
frame analysis they don't understand
what's going on when price then comes
back down into this double bottom here
what are they doing they're trying to
get long okay there's all sorts of
Madness and reasons as to why liquidity
can be generated everywhere there's so
many different ways you can look at it
you don't really need to worry or get
your head around it what you need to
identify is Market structure is giving
my me my direction I've got well priced
pois I want to trade from but I know
that I need to see either liquidity to
the left or to the right before I'm
going to get involved and then it's down
to you whether want to wait for more
Confluence such as waiting for Market
structure to shift back in your favor
okay so there's a lot of different ways
you can cut and slice this but we have
very very mechanical rules on when we
will use liquidity to the left or when
we ignore that and we must use it to the
right how near it needs to be what we
need to see exactly for our entries and
when a trade idea is invalidated you
need to have that very very clear okay
so if you want you know we've done all
the hard work for you if you want our
mechanical trade plans you know where to
get it right you can sign up to our
community down uh down in the
description below but but there is tons
of information now in this video to help
you think about what's relevant to help
you think about how to make it
mechanical and it's up to you now to use
what's what you resonate with test it
consistent actions leads to consistent
results that's how you will do it so to
try and simplify everything and
summarize it for you okay there's one
thing you're going to try and remember
from this video is that the big guys
need opposing liquidity to enter the
market with minimal slippage so we want
to try and identify where those opposing
liquidity pools are going to be
for them in the opposite direction of
where they want to trade so if you're
looking to buy from a demand zone or
from a level you want to see that cell
side liquidity generated in front of
your level to increase the probability
that that demand zone or that key level
is going to hold and then vice versa for
if you're looking for shorting
opportunities once you kind of get that
logic embedded in your mind then you can
start to simplify and form mechanical
rules to use that to your advantage
within whatever framework you wish to
use now if you want to learn more about
our framework make sure you sign up to
our free training video series the link
will be in the description below the
video where we're going to build
everything from the ground up take each
concept really slowly Market structure
supply and demand liquidity Concepts
which you've now just learned how to
formulate your trade plan how to look at
Market phases and all of that good stuff
so if you want to get that involved it's
completely free tons of value you you're
going to be an idiot if you don't sign
up otherwise let me know in the comments
what you thought about this video and
Cliquez sur n'importe quel texte ou horodatage pour accéder directement à ce moment de la vidéo
Partager :
La plupart des transcriptions sont prêtes en moins de 5 secondes
Copie en un clicPlus de 125 languesRechercher dans le contenuAller aux horodatages
Collez une URL YouTube
Entrez le lien de n'importe quelle vidéo YouTube pour obtenir la transcription complète
Formulaire d'extraction de transcription
La plupart des transcriptions sont prêtes en moins de 5 secondes
Installez notre extension Chrome
Obtenez les transcriptions instantanément sans quitter YouTube. Installez notre extension Chrome et accédez en un clic à la transcription de n'importe quelle vidéo directement depuis la page de lecture.
