Confirmations for good trade setups•
Confirmations for good trade setups•
explain “Liquidity”
1. Where is the Liquidity? To spot liquidity, you need to know which trend the market is following. In a downtrend = Liquidity is found on the UPPER SIDE of the chart In a uptrend = Liquidity is found on the LOWER SIDE of the chart 1.1 Where is the Liquidity? Liquidity rests at previous Highs in a downtrend. On HTF, Liquidity points will be at PDL, PDH, PWL and PWH 1.2 Where is the Liquidity? After a strong selling or buying level is formed, Liquidity will build accumulation around those areas. When a sweep in the price occurs, it targets the supply or demand zones, to provide the necessary Liquidity for the next move. 2. Liquidity Sweep A liquidity sweep occurs when significant market players execute large-volume trades to trigger the activation of a cluster of pending buy or sell orders This action typically results in rapid price movements and targets what are known as liquidity zones. 2.1 Shift with Displacement A Shift indicates a potential reve...
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