DO NOT trade liquidity blocks blindly, understand the liquidity behind them — Transcript

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1. 0:00Just because there's an LB, it does not
2. 0:02mean you should be trading with it. Like
3. 0:03I'll give you an example. Look, let me
4. 0:04draw this for you. If we have an LB form
5. 0:06like this, look. And this is what price
6. 0:08action looks like. Yes, this is an LB,
7. 0:10right, chat? This area down here. That's
8. 0:11an LB. Does that mean though we need to
9. 0:13be trading from it? No. You're trading
10. 0:15with retail here. Took out a high price
11. 0:16out of pullback. This is a no good
12. 0:18entry. Just cuz it's an LB does not mean
13. 0:20we should be taking entries off it. And
14. 0:21that's a big mistake a lot of people
15. 0:22[music] make. Then how we make entry
16. 0:24even though LB, I'll show you. You need
17. 0:25to pair it with liquidity. Look, same
18. 0:27scenario, chat. Price sells off, takes a
19. 0:29low out, creates an LB, right? Now, look
20. 0:31at this. What is this? Liquidity. Price
21. 0:33sells off, grabs the liquidity, respects
22. 0:36the LB. Let me use a blue box here.
23. 0:37Respects the blue box. This is a [music]
24. 0:39long entry. Just like that. And then you
25. 0:41target whatever liquidity you're looking
26. 0:43at target to the upside. There you go.
27. 0:44That is how you use an LB correctly.
28. 0:46That's pairing it with liquidity.