Boot Camp Day 12: Liquidity Pt 3 — Transcript

Full transcript

1. 0:00what's good guys welcome to boot camp
2. 0:03who knows what day but all I know is we
3. 0:06are talking about wrapping up our
4. 0:08liquidity
5. 0:10um little lesson little series within
6. 0:12this boot camp so after what we have
7. 0:15learned
8. 0:16um also guys look
9. 0:18pretty little microphone I'm I'm see I'm
10. 0:22spending money on you guys I don't I
11. 0:24didn't need this I was fine with my
12. 0:25trash ass set up but guess what I was
13. 0:28getting [ __ ] on when all you guys were
14. 0:30saying your face cam is ass
15. 0:33um your your setup is ass dude come on
16. 0:36bro I I used to just trade on my phone
17. 0:38you guys are trying to make me up my
18. 0:40[ __ ]
19. 0:42um but anyways today is part three of
20. 0:45our liquidity series and then we will
21. 0:47move from there over to our fair value
22. 0:50Gap series and then over to our order
23. 0:52Block series and then over to our
24. 0:54equilibrium Series so we're we're
25. 0:56starting to add the building blocks that
26. 0:57we need to actually play straights and
27. 1:00that's going to be part of uh what we're
28. 1:02doing today pretty much just talking
29. 1:04about
30. 1:05um you know the full overview of
31. 1:06liquidity seeing how
32. 1:08um
33. 1:09how we can like use it to our advantage
34. 1:12really because now right after the first
35. 1:15day we understand what it is and why we
36. 1:18want to use it right after the second
37. 1:20day
38. 1:21we we can see directly how it works on
39. 1:24the charts right we can see okay a high
40. 1:26gets taken out and then what happens
41. 1:28right you can see orders get filled
42. 1:29through break of structure through
43. 1:31Market structure shift whatever you want
44. 1:32to say and then price changes Direction
45. 1:34so that's more of what we're going to be
46. 1:36doing today literally just spotting it
47. 1:38out on the chart helping you guys be
48. 1:39able to spot it easier
49. 1:42um and then translate that into how you
50. 1:44could potentially take a trade off of it
51. 1:45again I don't want you guys to think
52. 1:47this is a strategy it's not it's a piece
53. 1:49that we can plug in to a strategy okay
54. 1:52this is not end-all be-all okay so I
55. 1:56mean literally just starting off I don't
56. 1:59know if you guys can see this
57. 2:00but pretty [ __ ] obvious we see boom
58. 2:04leg down break of structure up
59. 2:07closing all the way up here price
60. 2:09rallies okay
61. 2:11it's again it's very very easy to see
62. 2:15this on the chart it's when in action
63. 2:19you know can you actually see it and can
64. 2:21you react and actually take the trade
65. 2:23correctly off of it
66. 2:25um and that's what we're going to be you
67. 2:27know trying to help you guys do uh let's
68. 2:29get rid of my trade from this morning
69. 2:33shmink
70. 2:34get rid of this trade that I didn't take
71. 2:39get rid of
72. 2:41anything on here cool
73. 2:43all right so
74. 2:45oops what the [ __ ] all right so to start
75. 2:49off we will cover liquidity on the S P
76. 2:53500 just because it's pretty easy to
77. 2:56spot on high time frames and it's it's
78. 2:59really relatively easy to to show how
79. 3:02you could potentially take a trade off
80. 3:03of this and how it works okay so
81. 3:06first of all right why do we want to use
82. 3:08liquidity right just a little recap
83. 3:10because that is where the market makers
84. 3:12are able to fill their orders right
85. 3:13because there's a bunch of people
86. 3:14exiting the market and there's a bunch
87. 3:15of people entering the market okay
88. 3:17perfect there's a lot of money getting
89. 3:18transacted through the market versus
90. 3:20when liquidity isn't getting swept or
91. 3:23getting you know induced then you know
92. 3:25it's kind of chippy choppy okay Tinky
93. 3:28tacky okay they aren't able to
94. 3:29completely you know change direction of
95. 3:32the market all right so
96. 3:34um
97. 3:35what we're looking for right is highs
98. 3:38and lows within the market right because
99. 3:40that's where people are going to be
100. 3:41entering long
101. 3:42um and that's where people are going to
102. 3:43be entering short and then that's also
103. 3:45where people are going to be getting
104. 3:46stopped out
105. 3:47right so with that being said right we
106. 3:51are technically looking to label highs
107. 3:55and lows as liquidity right in most
108. 3:58importantly prominent highs and lows
109. 4:01okay so you're probably saying well how
110. 4:03do we know what's prominent well it
111. 4:05varies from time frame to time frame on
112. 4:07what is prominent or not but if you just
113. 4:09look
114. 4:10at the chart okay it's it's relatively
115. 4:13easy to to just Mark out what Highs are
116. 4:18prominent
117. 4:21and what lows are prominent
118. 4:33this is getting kind of messy I'm just
119. 4:34going to work with what we put on right
120. 4:36now so as we can see prominent high
121. 4:39right here why because it's the start of
122. 4:42this big Trend okay we come down we come
123. 4:45up and make a like double top pretty
124. 4:48prominent High we come down make a lower
125. 4:50low
126. 4:51okay then we come up and take out this
127. 4:54prominent High making a new prominent
128. 4:56eye and then what does Market do rally
129. 4:58even lower okay boom we can get rid of
130. 5:00these lows okay then what does price
131. 5:03price do we make a relatively prominent
132. 5:06low right here and then a relatively
133. 5:08prominent high right here you could can
134. 5:10argue that these are prominent Highs but
135. 5:12you know
136. 5:14whatever
137. 5:16um relative prominent high right here
138. 5:17relative prominent low right here
139. 5:18obviously we push lower because this is
140. 5:21a downtrend okay what is Zoo price Zoo
141. 5:23come up takes out this high right what
142. 5:26happens brake structure to the downside
143. 5:28price Falls now we have this as a
144. 5:31prominent High
145. 5:33and this as a prominent low okay price
146. 5:37comes down makes a lower low okay I
147. 5:40would also consider this a prominent
148. 5:41High because it broke structure on The
149. 5:44Daily time frame
150. 5:45um okay what happens price rallies up
151. 5:47takes out the prominent High comes down
152. 5:49a little bit okay now we've pushed past
153. 5:52that where is Price likely going to draw
154. 5:55towards
155. 5:56this high right we can think of
156. 5:59liquidity essentially as a magnet for
157. 6:02price that is where price is drawing to
158. 6:05because that is where the market makers
159. 6:06want to push price so they can get their
160. 6:09orders filled make sense cool right so
161. 6:13any form of liquidity right consider it
162. 6:16a magnet for price right we're not
163. 6:18considering it oh buy oh sell we're
164. 6:22saying okay this is an area where orders
165. 6:24could get filled
166. 6:26for us to potentially take a trade it
167. 6:28doesn't mean when this High gets hit we
168. 6:30press sell it doesn't mean when these
169. 6:32lows get hit and press by right because
170. 6:35if you did that you would lose way more
171. 6:37than you win right we wait for these
172. 6:39areas of liquidity to get hit and then
173. 6:41we wait for confirmation
174. 6:43through breaker structure through other
175. 6:46confluences right that we'll talk about
176. 6:49later in this okay we wait for those
177. 6:52confluences to give us the confirmation
178. 6:56that liquidity has been swept and that
179. 6:59orders have been filled
180. 7:01that makes sense right so when we see a
181. 7:03liquidity sweep when we see these
182. 7:04prominent highs and lows get taken out
183. 7:07it's safe to assume
184. 7:09okay I'm now going to wait for
185. 7:13confirmation that orders have been
186. 7:14filled because then price is going to go
187. 7:16in the opposite direction
188. 7:19that makes sense
189. 7:20cool okay and that's all liquidity is so
190. 7:23how can we use this our to our advantage
191. 7:25for entries well I just talked about it
192. 7:27right we we wait for those those prices
193. 7:29to get hit and then we see what price
194. 7:32reacts off of it price doesn't react
195. 7:34perfect no trade
196. 7:35if price does react perfect act on it
197. 7:38take a trade right and then on the
198. 7:41contrary how can we use liquidity for
199. 7:43take profits right if if it's a magnet
200. 7:46for Price above right if we if we think
201. 7:50okay yeah highs will attract will
202. 7:52attract price because that's what it
203. 7:54wants to seek out in order to go lower
204. 7:56if we're saying oh yeah this is a this
205. 7:59is a relative bear market right now
206. 8:02right if we're saying oh yeah this is a
207. 8:04relatively bear Market
208. 8:06laughs
209. 8:08I think price will go lower
210. 8:10right then we're waiting for highs to
211. 8:12get taken out but then right when let's
212. 8:15say we do find a trade let's say we're
213. 8:17able to find an entry whatever here
214. 8:20where are we where are we going to
215. 8:21Target right if we think price is going
216. 8:23to look go lower if liquidity is a
217. 8:25magnet
218. 8:27then it's probably going to start
219. 8:28seeking out these lows why because just
220. 8:31like how market makers need you guys to
221. 8:33be entering and exiting for them to
222. 8:35enter orders it's the same thing with
223. 8:38exiting right because if they exit if
224. 8:40they exit at a random point at in the
225. 8:43chart right without a low or a high
226. 8:46being like an area where they where they
227. 8:48take orders out
228. 8:49right if they were to just you know exit
229. 8:52right now right price would probably
230. 8:54drop price will move in the other
231. 8:55direction they still need people
232. 8:57entering and exiting the market just
233. 8:59like they do to fill their orders to
234. 9:02keep to to sell their orders right to
235. 9:05exit their orders to exit their position
236. 9:07right without price just making a big
237. 9:09move after those positions get closed
238. 9:11out does that make sense because same
239. 9:14thing with them wanting to go go short
240. 9:17at the highs they also want to you know
241. 9:21close and right if they're if they're
242. 9:22close
243. 9:23um if they're going short they're going
244. 9:25to be closing their position at Lowe's
245. 9:26why because there's going to be people
246. 9:28going short there's also people going to
247. 9:29be exiting wow
248. 9:36been here for too long already sorry I'm
249. 9:39sorry
250. 9:40um for the language shift
251. 9:43um I was just talking to this lady on
252. 9:45the phone in Spanish so my Spanish is
253. 9:47not nearly as good as what it used to be
254. 9:49but it gets me around here
255. 9:51um so
256. 9:52does that make sense right so if we're
257. 9:54looking if we're looking for shorts
258. 9:56we're using liquidity to be this the
259. 9:59peak of our interest right we take out a
260. 10:02high we get a breaker structure to the
261. 10:03downside perfect and then like any other
262. 10:06Confluence perfect we can go short
263. 10:10okay and then where are we targeting the
264. 10:12lows right because that's where they can
265. 10:14exit their position
266. 10:17just like how they were able to fill
267. 10:18their position at the high they have to
268. 10:20exit their position at the lows
269. 10:22make sense
270. 10:24cool cool
271. 10:27okay so let's just go through more
272. 10:29examples of this
273. 10:31just working
274. 10:33and we can even go over the
275. 10:35examples right here that we already
276. 10:38marked out right so we had a prominent
277. 10:39high right here as we can see price
278. 10:42pushes up where do we get the break of
279. 10:43structure if you guys remember that
280. 10:45portion
281. 10:46boom we get a break of structure right
282. 10:48here this was the most recent low we got
283. 10:50a closure below perfect you can either
284. 10:52enter off that
285. 10:54enter off of you know some sort of
286. 11:01off of some some sort of fair value gap
287. 11:04on the four hour Within These candles
288. 11:07right we see that get filled chop chop
289. 11:09chop break down okay whatever whatever
290. 11:11you want right we get a liquidity sweep
291. 11:14then a break of structure those are
292. 11:15pretty standard okay then where do we
293. 11:18target
294. 11:20next previous prominent lows
295. 11:22price draws to it just like a [ __ ]
296. 11:24magnet moving forward
297. 11:26okay where where is our next previous
298. 11:29prominent lows that get made prior to
299. 11:31the braking structure to the upside on
300. 11:33The Daily right here where's that
301. 11:35where's the prominent eye that gets made
302. 11:37on The Daily right here okay we see
303. 11:39price move up past it got one pretty far
304. 11:41past it but then we get a breaker
305. 11:43structure after another form of
306. 11:45liquidity gets swept right we have highs
307. 11:47right here highs right here right we
308. 11:49push past this one don't give up much of
309. 11:50a reaction we push pass take out this
310. 11:53one we do get a reaction break of
311. 11:55structure to the downside you know
312. 11:57whether you find uh an imbalance within
313. 12:00here this daily candle filled this fair
314. 12:02value Gap within here whatever you want
315. 12:03okay it filled orders okay we see the
316. 12:07confirmation of it with the break of
317. 12:08structure
318. 12:11where does price go to
319. 12:14where does it get magnetized to previous
320. 12:16prominent low now we have previous
321. 12:19prominent lows right here
322. 12:23prominent highs all the way up here
323. 12:28and some other prominent highs in
324. 12:30between but we've already pushed past
325. 12:32them right we can see that right we had
326. 12:35this prominent High gets taken out we
327. 12:38failed to reach this low we're just
328. 12:40chopping up
329. 12:42um and now we're pushing for this High
330. 12:44okay so you could argue that this is a
331. 12:47prominent low
332. 12:49and this is a prominent low and none of
333. 12:52these highs have caused a reaction yet
334. 12:54so now this is the one that we're
335. 12:55looking for
336. 12:57cool does that make sense perfect let's
337. 12:59show it now let's show this happening on
338. 13:02a smaller time frame
339. 13:03not just the daily because this happens
340. 13:05on literally every single time frame
341. 13:08and it can be used to your advantage
342. 13:10just like this
343. 13:12okay we're looking at the four hour on
344. 13:15GBP USD what's the first thing you see
345. 13:17big rally up and then a big dump
346. 13:20I wonder why that happened okay we have
347. 13:23boom highs right here okay you're
348. 13:25probably saying it never got hit exactly
349. 13:27look on the one hour
350. 13:37sweep
351. 13:39when's our break boom with this candle
352. 13:41right here wait for some type of
353. 13:43retracement on up
354. 13:45right we get a break of structure with
355. 13:47this candle boom push back up hits this
356. 13:50order block
357. 13:51capitulates
358. 13:55taking out prominent low filling this
359. 13:58imbalance filling this imbalance so many
360. 14:00areas for you to take profit here but
361. 14:02we're just talking about liquidity right
362. 14:03now there will be a whole section on how
363. 14:05to take profits later
364. 14:09okay does that make sense same thing
365. 14:11here right
366. 14:14boom we have highs right here barely
367. 14:16gets Wicked
368. 14:19price okay where's our break of
369. 14:21structure we get a break right here
370. 14:25right we get a we have a low right here
371. 14:26down candle up candle this is our low
372. 14:30most recent low that's you know applied
373. 14:32to a break of structure as you can see
374. 14:33none of these lows got broken this low
375. 14:36gets broken you can scale into the five
376. 14:38minute boom imbalance gets filled right
377. 14:40within here find some sort of
378. 14:41confirmation boom go short where
379. 14:45there's lows right here
380. 14:48there's a full freaking imbalance within
381. 14:51here all of that right all that good
382. 14:54stuff and and we'll get into that later
383. 14:55I'm literally just trying to show you
384. 14:57guys how liquidity works and how you can
385. 15:00use the draw on liquidity for taking
386. 15:03profits and then also
387. 15:06for entering positions same thing with
388. 15:08gold right here
389. 15:10Lowe's boom
390. 15:14we see boom price drives in boom quick
391. 15:18regain up closure above right here yes
392. 15:21we get some dip down into this imbalance
393. 15:23this is probably where you would have
394. 15:24wanted to get your orders filled
395. 15:27okay find some sort of Entry within here
396. 15:29and we'll go over that where does price
397. 15:31draw back up to Boom previous highs once
398. 15:35it once those previous highs get hit
399. 15:36boom orders liquidated orders filled now
400. 15:39we're chopping
401. 15:42simple simple boys very very simple
402. 15:45um and it's and it gets a lot easier
403. 15:47when when you start being able to just
404. 15:49like spot this like at the back of your
405. 15:50hand like you you should be able to pull
406. 15:52up a chart and just be like oh that's a
407. 15:54liquidity sleep yep that's a liquidity
408. 15:55sweep liquidity sweep liquidity sweep
409. 15:57right you should be able to see these
410. 15:59like like none other
411. 16:01sweep rally
412. 16:07what's this right here oh sweep rally
413. 16:10you know
414. 16:12oh what's this right here sweep drop
415. 16:15sweep retracement
416. 16:18you know it's it's really funny how easy
417. 16:21how easy it is and how comfortable you
418. 16:23get starting to see this but it's one
419. 16:26thing you know being able to see it
420. 16:28oh sweet fall
421. 16:32what's this
422. 16:34oh sweep rally you can't tell me that
423. 16:36this [ __ ] doesn't work
424. 16:38right you really can't you you cannot
425. 16:41tell me that this [ __ ] does not work and
426. 16:43it happens on every single time frame
427. 16:44right sweep rally
428. 16:48like I see this [ __ ] happen on on the 15
429. 16:50minute
430. 16:52I see this [ __ ] happen on the one minute
431. 16:56oh damn that's crazy there's a low sweep
432. 16:58rally
433. 17:01oh damn that's crazy these highs sweep
434. 17:03drop
435. 17:06it it's how these markets move it's how
436. 17:09orders get get filled it's how markets
437. 17:12literally flow
438. 17:15damn that's a cool low sweep rally
439. 17:19I'll take that low I'll fill my orders
440. 17:21you know
441. 17:24that's all this is
442. 17:26Okay so
443. 17:28again that was just me trying to show
444. 17:30you guys like examples of all this going
445. 17:32down
446. 17:33um and hopefully you guys have a better
447. 17:35idea of liquidity
448. 17:37again now homework isn't just seeing the
449. 17:42liquidity sweep it's not saying there it
450. 17:45is and just marking it on several
451. 17:47different time frames and now I want you
452. 17:50to try and pair it with something
453. 17:53try and find
454. 17:54five liquidity sweeps on whatever pair
455. 17:57you use I don't care what time frame
456. 17:59find five liquidity sweeps okay
457. 18:03and then see how you could have you know
458. 18:06gained more confidence for a trade
459. 18:09you see the sweep
460. 18:11and then look into the price action that
461. 18:13follows okay there was a break of
462. 18:15structure that's a Confluence for me to
463. 18:17trade okay and then after the break of
464. 18:19structure it filled an imbalance and
465. 18:21reacted off of it that's where I'm
466. 18:23entering okay we got a sweep of
467. 18:25liquidity a break of structure a hidden
468. 18:27order block reacted boom that's where
469. 18:30I'm entering
470. 18:31simple as that that [ __ ] easy it's
471. 18:34not [ __ ] easy okay and that's really
472. 18:37what our strategy is going to get into
473. 18:41but you guys don't necessarily
474. 18:43completely understand some of the some
475. 18:45of the logistical things
476. 18:47um that we're going to cover but that's
477. 18:49it for now okay that is liquidity
478. 18:52explained hopefully you guys have a good
479. 18:55grasp on this if you don't re-watch the
480. 18:58three videos that we've made on it and
481. 19:00then also go back and re-watch my how to
482. 19:02spot liquidity sweeps just like very
483. 19:05first you know video that I put
484. 19:08um that I put up like one of my first
485. 19:10videos on YouTube okay so if you're
486. 19:13having trouble with this it's okay
487. 19:14there's a reason why I split this up
488. 19:15into three parts okay understand why we
489. 19:18want to use it and understand where it
490. 19:20lies within the market and then
491. 19:22understand that liquidity
492. 19:25it's fine to Mark out every single high
493. 19:27and low but not every single high and
494. 19:29low will be used as liquidity to fill
495. 19:31orders and that's why we wait for a
496. 19:33Confluence that's why we wait for
497. 19:35breaker structure that's why we wait for
498. 19:37a fair value Gap then a reaction that's
499. 19:38why we wait for an order block then a
500. 19:40reaction that's why we wait for all that
501. 19:42stuff
502. 19:43does that make sense cool you guys know
503. 19:45your homework Find find five examples of
504. 19:48a liquidity sweep trade setup or a
505. 19:51liquidity suite and Confluence for why
506. 19:54it went in the direction it did
507. 19:56get that done take some notes and then
508. 19:59let's get after it all right I'll see
509. 20:00you boys tomorrow for some and
510. 20:02discipline