10,000 Hours of Liquidity Trading in a 16 Minute Video — Transcript

Full transcript

1. 0:00What's going on guys? Welcome back to
2. 0:01another interquity trading video. Today
3. 0:04is going to be a money one. We're going
4. 0:07to be talking everything and anything to
5. 0:09do about liquidity. Everything I have
6. 0:11learned over the course of years and
7. 0:14thousands and thousands of hours of
8. 0:16looking at these charts. So, please sit
9. 0:18back, grab that notepad, and take as
10. 0:20much notes as possible because I'm going
11. 0:22to be pouring my brain into you guys.
12. 0:24All right? So, leave a like, a comment
13. 0:27down below of future videos you want to
14. 0:29see from us. Turn those noties on. Enjoy
15. 0:31this one.
16. 0:40All right, guys. We're going to be
17. 0:41talking about NQ and I'm going to be
18. 0:43showing you guys the power, the true
19. 0:45power of liquidity only even using the
20. 0:48higher time frames, not even hopping
21. 0:49into the lower. We're going to be on the
22. 0:52daily time frame right now and we're
23. 0:53going to break down all of the price
24. 0:55action in front of us right now. And
25. 0:57also, we're going to unfold more as we
26. 0:58move on. Let's talk about this big
27. 1:00sell-off we've had. We can actually even
28. 1:02hop on to the weekly here. The market
29. 1:04kind of topped out here and printed a
30. 1:06top, you could call it, right? And you
31. 1:08can even see we have equal highs. So,
32. 1:11I'm going to mark on this high right
33. 1:13here. And I hope we can all agree why we
34. 1:16have a reason to mark on this high,
35. 1:18right? I'm not just plotting on a random
36. 1:19high. Look how we have this high
37. 1:22respecting this high to the left hand
38. 1:24side. That is price communicating to us,
39. 1:27telling us we have left liquidity at the
40. 1:29highs. So look at this. I plotted it on
41. 1:31not because I'm predicting it, because
42. 1:33the market has literally communicated it
43. 1:34to us. And remember, this is the weekly
44. 1:36time frame. So check this out. For 1 2 3
45. 1:404 5 6 7 weeks, we had a rapid sell off
46. 1:44to the downside. Think about the
47. 1:46mentality, the mindset of the retail
48. 1:48trader seeing this kind of move to the
49. 1:50downside. Is it's going to entice them.
50. 1:52it's going to induce them to continue
51. 1:54selling. Whether that's going to be
52. 1:55continuations, whatever way they trade,
53. 1:58they want to be selling this market back
54. 2:00down. Now, we have to view it from the
55. 2:02perspective of why did this move occur?
56. 2:04If you look to the left-hand side, we
57. 2:06can all agree that we have all of these
58. 2:08lows built up in the market for us. And
59. 2:11if you continue following them, check
60. 2:13this out. This wick right here tapped
61. 2:17into something on the left hand side.
62. 2:19Now this low tapped into something on
63. 2:22the lefth hand side. So this is like you
64. 2:23can call it like a chain whatever it is.
65. 2:25This is all liquidity here. And look if
66. 2:27I mark this red box on you can see that
67. 2:29we have tapped into this area as well.
68. 2:31The market was building liquidity for
69. 2:33weeks, months. All right. And then
70. 2:36finally big selloff to the downside.
71. 2:38What was the purpose of it? What was the
72. 2:40intention behind it? To clear all of
73. 2:43this liquidity. Okay. If I draw this
74. 2:45line this line on it'll make even more
75. 2:47sense. And now check this out. What do
76. 2:49we have right below? Hope you guys all
77. 2:52see this by now. A liquidity block. So
78. 2:55we can plot on a blue box. Look how the
79. 2:58market taps into this area. And that is
80. 3:00where that bottom in the market is
81. 3:03found. We trap all of the buyers above
82. 3:06this low. Tap into an LB at the extreme.
83. 3:10And look at that reaction coming out of
84. 3:11it. One week, two week, and then finally
85. 3:13this third week. Look at this bullish
86. 3:15closure right away. Guys, I hope you
87. 3:17guys are starting to see more and more
88. 3:18of this, but your eyes should be back to
89. 3:21these highs. Okay, that is the only
90. 3:24logical liquidity point I can see in
91. 3:25front of us right now. These equal highs
92. 3:27set for us. Okay, and remember the
93. 3:30intention behind this move from high to
94. 3:32low was to induce sellers to the
95. 3:35downside. We need to be buying back up.
96. 3:38Remember what I always say. If this trap
97. 3:40move to the downside occurs, any bearish
98. 3:43moves, deem them to be false, use them
99. 3:47to find a buy opportunity back up to the
100. 3:50upside. So, this is the weekly time
101. 3:51frame. We're not going to be taking
102. 3:52entries off the weekly. So, let's hop
103. 3:54into the 1 hour and the 4 hour, and
104. 3:55we'll start breaking down a bunch of
105. 3:58entries on the way back up. Okay, so
106. 3:59ever since we tapped into this higher
107. 4:01time frame liquidity block, which is
108. 4:02going to be the blue box, we can just
109. 4:03drag this over to clean it up. We
110. 4:05reacted. We get a pullback to the
111. 4:06extreme and then boom, we find momentum
112. 4:08and that continuation starts coming in.
113. 4:10From there, we get another little
114. 4:11pullback. We tap into some imbalances
115. 4:13and continue to the upside. Now, if I
116. 4:15mark out this area that we've tapped
117. 4:17into once, look at this, right? And I
118. 4:20mark the whole high. Drag it over.
119. 4:23Remember what we talk about all the time
120. 4:25about where liquidity is? We're not
121. 4:27predicting. We're letting the market
122. 4:28communicate to us. So, look at this.
123. 4:30this high respects this whole area here
124. 4:33telling us that we now have liquidity
125. 4:36above this high. So that's a great
126. 4:39confluence. Use that to your advantage.
127. 4:41And if I play price forward a little
128. 4:42bit. Okay, look what we have done. All
129. 4:45right, I hope everyone's starting to see
130. 4:47this. But we have built a ton of
131. 4:50liquidity. Look at this guys. This is a
132. 4:524hour time frame. Can you imagine how
133. 4:54many people are getting screwed over in
134. 4:57this type of price action? rangy range
135. 4:59range respecting lows, respecting highs,
136. 5:01still trading in this whole area, this
137. 5:03whole trap area. This is good though
138. 5:05from our perspective with our system. We
139. 5:07want to see this occur. We want to see
140. 5:09this build up in the market. We now view
141. 5:11this low to hold liquidity, right? And
142. 5:14if I open it up on the 1 hour, you can
143. 5:15see why. Again, we're not predicting.
144. 5:18It's literally communicating it to us.
145. 5:20We have this low respecting this low and
146. 5:24going long back up to the upside. Okay?
147. 5:27So that's why I have plotted on this
148. 5:28blue line right here. Perfect. Now if
149. 5:31you look over to the left as well, you
150. 5:32can see all of this has been tapped
151. 5:34into. So this is all liquidity as well.
152. 5:36You could even mark on this. And
153. 5:39coincidence right below we have a
154. 5:42liquidity block. We don't have a reason
155. 5:43to run this low. Why would we run the
156. 5:45low? We just took out a level of
157. 5:46liquidity here and then we went bullish.
158. 5:48Okay? So I don't view any liquidity to
159. 5:50be below this low. We have liquidity to
160. 5:52the upside. We have a reason for us to
161. 5:54push higher. We have a buildup of
162. 5:56buyers, okay? And we have a liquidity
163. 5:58block below. Perfect. Everything checks
164. 5:59the boxes. We need to be taking an entry
165. 6:02once the liquidity is taken. So, boom.
166. 6:04Entry, stop-loss. And don't forget about
167. 6:07our targets, guys. These equal highs
168. 6:10left for us. Done on purpose. Will be
169. 6:13all the way back at the extreme. Okay?
170. 6:14All the way back at the highs. Now,
171. 6:16let's hop into the 4 hour and we'll
172. 6:18start unfolding price.
173. 6:21So look at that rapid sell off to the
174. 6:23downside inducing sellers but not only
175. 6:25inducing sellers trapping buyers. Okay,
176. 6:28once those buyers are trapped again
177. 6:29that's when we are interested in buying
178. 6:31this asset back up to the upside. Okay,
179. 6:34we'll clean up a couple lines here. But
180. 6:36that is going to be entry number one.
181. 6:38And the easiest way to manage this, very
182. 6:41easy, very simple, is as soon as we take
183. 6:42out this high, we can all agree that
184. 6:44liquidity has been taken. So manage your
185. 6:46risk. Maybe it's um roll it to break
186. 6:48even or just tuck it below this low.
187. 6:51Nonetheless, when these highs are taken
188. 6:53out, you need to be managing your
189. 6:54position. Let's play this out a little
190. 6:56bit. And just like that, we run those
191. 6:59highs. So now we can be this 100%. We
192. 7:01can all agree on that, right? Let's
193. 7:03remove this line as well. Okay. And
194. 7:05we're going to go back to the hourly
195. 7:06time frame here. Perfect. Okay. So now
196. 7:08our entry number one, it's played out
197. 7:10pretty nice. We've taken out a high from
198. 7:11the lefth hand side. Since we have taken
199. 7:12out that high, remember, we got to be
200. 7:14being this. You can't just be holding it
201. 7:16full volume and not be um break even. So
202. 7:19be here. I think we can all agree what's
203. 7:21happening in front of our eyes. Again,
204. 7:22let me drag this red box over. Another
205. 7:24buildup of liquidity. So let's follow
206. 7:27along. Buyers induced
207. 7:29after taking out this high. Buyers
208. 7:31trapped. This is where a lot of people
209. 7:33make mistakes. Just because we have
210. 7:35taken out this low here does not mean we
211. 7:37need to buy right away. That is pattern
212. 7:40trading. We do not do that. Look what
213. 7:42the market does. We print this low and
214. 7:44we go long. Remember, sellers are
215. 7:46induced, right? Sellers are selling
216. 7:48these areas. Look what the market does
217. 7:50for us. It reacts off it to build
218. 7:52liquidity. So, there's liquidity above
219. 7:53this high. Now, this is not an area we
220. 7:55want to be selling from because we have
221. 7:57taken out this low. That's something you
222. 7:59need to identify. Just because there's a
223. 8:00reaction does not mean we need to be
224. 8:02involved in it. And we start getting a
225. 8:04reaction back down to the downside.
226. 8:05Right away, look where your eyes need to
227. 8:07go. Back down to this low. Why? We have
228. 8:11liquidity here. Same thing. Look, high
229. 8:14taken out. Low respecting low. That
230. 8:18means price has literally told us, it's
231. 8:20confirmed to us that we have liquidity
232. 8:22below this low. Wait for price to come
233. 8:23below this low. And would you look at
234. 8:25that? We have a another liquidity block
235. 8:29at the low down here. If I drag this
236. 8:31over, the only issue with this liquidity
237. 8:33block, guys, is look how big it is. We
238. 8:34would have to enter here and our stop
239. 8:36loss would have to cover the whole low.
240. 8:38Now, we're on the hourly time frame.
241. 8:40Check this out. We have another
242. 8:41liquidity block, a refined area right
243. 8:44here.
244. 8:45Okay? And this is only using the 1 hour
245. 8:47time frame. Okay? But you can see how
246. 8:49price takes out this high, takes out
247. 8:51this low, leaving a liquidity block down
248. 8:54here. So, we can use that as a level to
249. 8:56put our stop loss. So, that shrinks our
250. 8:58SL quite a bit. Look at this. And this
251. 9:00is all doing this on the higher time
252. 9:02frames, by the way. Um, of course, your
253. 9:03RR can be much higher if you use the
254. 9:06lower time frames to refine after, but
255. 9:07that's not the purpose of this video. So
256. 9:09entry here. Same target back up to the
257. 9:11upside just like this. So let's see what
258. 9:14happens here. So remember we induce
259. 9:16buyers. We want to see price below the
260. 9:18below the low again.
261. 9:21And boom. We get tagged in and price
262. 9:23starts continuing to the upside. All
263. 9:25right. Rinse and repeat.
264. 9:30Okay. So now this entry moves up to the
265. 9:32upside. Remember we've taken out this
266. 9:35low inducing sellers. So any any
267. 9:38reactions at the highs deem them to be
268. 9:40false. Now I skipped a little bit far
269. 9:42ahead but maybe you guys can test on
270. 9:44your own here and see what I see. But
271. 9:46look
272. 9:48induce buyers. We trapped them. Look at
273. 9:51the engineered liquidity we have at the
274. 9:53highs. Okay, I hope you guys are
275. 9:54starting to see this on your own now.
276. 9:56And what do we have right below?
277. 9:59Go to the 15 minutes to kind of open
278. 10:01this up a little more for you guys.
279. 10:03We have another liquidity block right
280. 10:06here. Price takes out this high and then
281. 10:09price takes out this low. Boom. LB. So,
282. 10:13we can take our entry. As soon as price
283. 10:16stabs out this low, anywhere below this
284. 10:19black line I have marked on is a valid
285. 10:21buy. Why? LB'll be below. So, that
286. 10:23provides us a level to put our stop
287. 10:25loss. Just like this. So, let's clean up
288. 10:27a couple of these lines. Entry would be
289. 10:29like this. And as soon as price takes
290. 10:32out these highs, roll your stop loss.
291. 10:34Boom. Just like that. and targets.
292. 10:36Everything remains the same. Don't
293. 10:38forget about that higher time frame
294. 10:39narrative. Let's drag this target all
295. 10:42the way back up to the highs. Just like
296. 10:44this. Remember, every single bearish
297. 10:46reaction is only going to provide us
298. 10:48another opportunity to buy this asset
299. 10:50back up. Now, let's play this out a
300. 10:52little bit and see if we can find any
301. 10:53more entries. All right, so the market
302. 10:55actually ends up gapping and moving even
303. 10:57higher. Look at this so far. One entry
304. 10:59being here. And I hope you guys can see
305. 11:01the pattern as well. Look at this. every
306. 11:02single entry. Once liquidity is taken,
307. 11:04once liquidity is taken, once liquidity
308. 11:06is taken, it's the same thing over and
309. 11:09over and over. Now, we need to identify
310. 11:11another level of liquidity in order for
311. 11:13us to buy back up. Let's break down this
312. 11:14price action right here. Nothing really
313. 11:16to take yet. However, things to point
314. 11:18out for sure, we induce buyers. At the
315. 11:20least, you want to see price below this
316. 11:22low. Now, at the least, because since we
317. 11:23have induced buyers, people want to be
318. 11:26buying above this low. Therefore, we
319. 11:28want to see price below the low. and we
320. 11:31take the low out. Let's hop into the
321. 11:3315-minute time frame.
322. 11:37So, we take the low out. We're going to
323. 11:38hop into the hourly right now. And it
324. 11:40looks like since we have taken out highs
325. 11:43here, same thing occurs. We are inducing
326. 11:45buyers. We need to see price back down
327. 11:47at the lows. Remember, we're not going
328. 11:48to be buying once highs are taken out.
329. 11:51Okay? And price ends up selling off.
330. 11:52Now,
331. 11:54I almost want you guys to I almost want
332. 11:56to pause the video and show you guys um
333. 11:59well, actually hope you guys can
334. 12:00identify what has just happened. We have
335. 12:02induced buyers. I'm going to get my
336. 12:04paint tool out. Inducing them. And look
337. 12:06at this sell move back down to the
338. 12:08downside. We trapped this low, but not
339. 12:09only this low. Look to the left hand
340. 12:11side. This is where people make a lot of
341. 12:12mistakes. We have a
342. 12:15liquidity block left for us, which means
343. 12:17in any reaction in this area can provide
344. 12:21us a buy. Okay. And check this out. If I
345. 12:23use this blue box, drag it over. Look at
346. 12:26this. We have tapped into this liquidity
347. 12:28block perfectly. Remember the logic.
348. 12:31This is the accuracy. It's crazy.
349. 12:32Sometimes the precision on this, but the
350. 12:34logic of this is there's no liquidity
351. 12:36below this low. Therefore, why would we
352. 12:39run this low? So, we use that to your
353. 12:41advantage. We tap into these areas, take
354. 12:43entries off them. Boom. Entry would be
355. 12:46just like this. Stop loss would be below
356. 12:48the low.
357. 12:49You have intraday targets here, but
358. 12:51again, don't forget about that higher
359. 12:53time frame narrative. We are going to be
360. 12:54targeting the highs back up to the
361. 12:56upside just like this. So, you get
362. 12:59tagged in perfectly at that LB again.
363. 13:02Great intraday targets on the way back
364. 13:03up. Let's play this out and you get a
365. 13:07gorgeous reaction higher. Perfect stuff.
366. 13:09Let's hop back into the hourly and we
367. 13:10can make sense of what's going on. So,
368. 13:12price takes out these highs and now we
369. 13:13start getting a pullback. Remember the
370. 13:16first step we need to see a buildup of
371. 13:18liquidity. We need to see buyers
372. 13:20induced.
373. 13:21Okay. Now look to the left hand side.
374. 13:26The same thing over and over. High taken
375. 13:29out. Buyers are induced. Look how this
376. 13:31low respects this low. Building
377. 13:34liquidity here. All we got to do is plot
378. 13:36on a blue line. That is a form of
379. 13:38liquidity for us. Now here's the
380. 13:40buildup. Price approaches this level.
381. 13:42Okay, this whole we can mark it on as a
382. 13:44red box just to make it easy for you
383. 13:46guys.
384. 13:48So price approaches this whole level
385. 13:49here, taps into it once, twice, three
386. 13:53times. This is inducing buyers. Now
387. 13:55we're on the 1 hour time frame, guys. If
388. 13:56I drag this over, look, this is over 20
389. 13:59hours of price action. You can only
390. 14:01imagine how many people are entering
391. 14:03buys here. We understand that. So
392. 14:06therefore, we want to be buying below.
393. 14:08Okay, remember the market has literally
394. 14:10communicated to us that liquidity is
395. 14:12below this low. We are not guessing. We
396. 14:14are not predicting. We're waiting for
397. 14:15the market to tell us this. And if you
398. 14:17look to the left hand side, what do we
399. 14:19have? Another liquidity block here.
400. 14:22Remove this.
401. 14:24Drag it over. Another higher time frame
402. 14:27liquidity block here. How can we take
403. 14:28this entry?
404. 14:30Just like this. Stop loss below the low
405. 14:32to the left. Look at the same thing
406. 14:35across all entries, guys. When liquidity
407. 14:37is taken, stop covering liquidity block.
408. 14:40Liquidity taken, stop below liquidity
409. 14:41block all the way up into this last
410. 14:44entry here. And again, we are taking
411. 14:45that entry once the liquidity is taken
412. 14:47and we are targeting the highs up here.
413. 14:50Just like this. This is all done from
414. 14:51the higher time frames. Now, imagine
415. 14:53when the higher time frames intact, you
416. 14:55can actually find entries and hold them
417. 14:56for like 1 to 10, 1 to 15, 1 to 20. Does
418. 14:59this always happen? Of course not. But
419. 15:01when it does, you want to be able to
420. 15:03identify it and take advantage of it.
421. 15:05So, we've identified a form of
422. 15:06liquidity. Okay, we're going to be
423. 15:08taking an entry off of it. Look where
424. 15:09our stop loss is below the liquidity
425. 15:11block. We get tagged in.
426. 15:15Let's go back to the 4hour time frame
427. 15:17and we can get that higher time frame
428. 15:19perspective
429. 15:22and we move all the way back up to the
430. 15:26upside and fulfill that higher time
431. 15:28frame target. Check this out.
432. 15:32Boom. Just like that. Remember where we
433. 15:35were at the very beginning of this video
434. 15:37on the daily time frame all the way down
435. 15:40here. And we simply just use the higher
436. 15:42time frame to find entries on the way
437. 15:45back up. Remember, if you use all these
438. 15:47concepts in the higher time frame, it's
439. 15:48great because it provides you that
440. 15:50direction. Then when you go into the
441. 15:51lower time frames and apply refinements,
442. 15:54that's when the RRS can drastically
443. 15:56increase with literally just using the 1
444. 15:59hour and the 4 hour. Check this out. We
445. 16:01have a 1:6, we have a 1:7, a 1:19 here,
446. 16:07a 1:14, and a 1:3.6.
447. 16:10Okay, this is literally just using the 4
448. 16:12hour and 1 hour. And I think maybe we
449. 16:14had one refinement maybe on the
450. 16:1515-minute to find a smaller um LB. Other
451. 16:19than that, all higher time frame. Now,
452. 16:21imagine if you were able to refine those
453. 16:23entries into the lower, the RR
454. 16:25drastically goes up. All right, guys. If
455. 16:27you enjoyed today's video, please leave
456. 16:29a like and a comment down below. That
457. 16:31was a long one, but it was a good one,
458. 16:33okay? So, please rewatch it if you need
459. 16:35to. Let us know down in the comments
460. 16:36what other videos you guys want to see
461. 16:38from us. We'll talk soon.