Liquidity Inducement Entries (LIQUIDITY BLOCKS) — Transcript

Full transcript

1. 0:00What's going on guys? Welcome back to a
2. 0:01brand new Inter Equity Trading video.
3. 0:03Today is going to be a video that's been
4. 0:06long awaited. Everyone is commenting it.
5. 0:08This video will be on liquidity blocks.
6. 0:11The way we enter the market, the levels
7. 0:13that provide us our stop loss
8. 0:16placements. I'm going to simplify it as
9. 0:17much as possible so you guys understand
10. 0:20everything about our entries.
11. 0:30Okay. So first we're going to use a
12. 0:32diagram to make sure you guys understand
13. 0:34what is a liquidity block, the logic
14. 0:36behind it, and how we use it, of course.
15. 0:39First we will use a diagram for a
16. 0:42bullish example. So let's just say the
17. 0:44market is trending to the upside, moving
18. 0:47higher, taking out previous highs.
19. 0:49Okay? And then all of a sudden we print
20. 0:51a low. Again, we go higher printing new
21. 0:53highs, and then we get a sell-off.
22. 0:56And we get this occurring. Center this
23. 0:58up in the screen. Let's talk about this.
24. 1:00You can see how we were swiftly moving
25. 1:02up to the upside, printing new highs in
26. 1:04the market. Pullback, new high, and then
27. 1:06finally
28. 1:07sell-off.
29. 1:09Grabbing a low here, inducing sellers.
30. 1:12Why does this induce sellers?
31. 1:14They are going to view this to be a BOS.
32. 1:17This level is going to be a trap for
33. 1:19them, so we'll make it that a red box.
34. 1:21You guys should know that by now, and
35. 1:22then we stab out the liquidity, and
36. 1:24boom, that is where the liquidity block
37. 1:27is now created. Now we can use this
38. 1:29level as a future entry, or what you can
39. 1:33do is
40. 1:34use the lower time frames and find an
41. 1:35entry in this high. That is all a
42. 1:39liquidity block is in a bearish example
43. 1:42here. Okay? Cuz again, we swept the
44. 1:44highs and moved down, so it's a bearish
45. 1:45liquidity block, of course. And that's
46. 1:47all it is.
47. 1:49Nothing too complicated, so I don't want
48. 1:50you guys to overcomplicate things. Keep
49. 1:52it as simple as possible, but again,
50. 1:54lows taken out, boom, we sweep out the
51. 1:57liquidity
52. 1:58and we leave this high. Now, since we
53. 2:00have swept out previous liquidity, now
54. 2:02we view this high right here to hold no
55. 2:05liquidity, meaning we don't have a
56. 2:08reason to run above it. So, that's the
57. 2:09logic behind it to help you understand
58. 2:12this as much as possible. All I have to
59. 2:14do
60. 2:15for a bullish one is invert this
61. 2:19and there you are. So, same thing.
62. 2:21We are selling off to the downside.
63. 2:23Here's a high, low, high, low.
64. 2:27Market runs bullish, we take out a high,
65. 2:29and boom, sell off to the downside and
66. 2:31we run a level of liquidity. Now,
67. 2:34remember, since we have run this
68. 2:36previous low, aka level of liquidity,
69. 2:39now
70. 2:40this low that we just marked on,
71. 2:43we view to have no liquidity. So, that
72. 2:46is now going to be used as a liquidity
73. 2:48block. Again, you have the option of
74. 2:51using whatever this whole area in the
75. 2:53future as an entry or in the lower time
76. 2:55frames, you would open up price action
77. 2:58and dissect what's going on in this low
78. 3:00on the lower time frame. So, let's just
79. 3:01say this is a M15 or H1 time frame, you
80. 3:05could go into the like the M1 in here,
81. 3:07right? And try and find yourself some
82. 3:09sort of entry back up to the upside.
83. 3:12However you want to look for your entry,
84. 3:13but that's just a good example of
85. 3:15refinement in here or you use this whole
86. 3:17area in the future as an entry. Okay?
87. 3:20And again, this is a bullish one. What
88. 3:22we previously went over would be that
89. 3:23bearish one. Okay? So, now we understand
90. 3:25what is a liquidity block. Let's go into
91. 3:27the charts and I'm going to show you
92. 3:28guys over and over and over to train
93. 3:30those eyes to find it in live time, of
94. 3:31course. We have a 15-minute chart and I
95. 3:34don't want to talk about direction. I
96. 3:35don't want to talk about none of that. I
97. 3:37don't want to talk about um the bias
98. 3:39running liquidity here. No, none of
99. 3:40that. This is purely going to be on
100. 3:43liquidity block. Something I want to say
101. 3:45before we continue with this video is
102. 3:46understand that liquidity blocks is not
103. 3:48the end all be all. Liquidity will
104. 3:51always be priority, period. If you don't
105. 3:54understand liquidity, please go back and
106. 3:55watch other videos. You need to
107. 3:57understand that first, and then you pair
108. 3:59it with liquidity blocks. From a
109. 4:00priority perspective, you have liquidity
110. 4:02being up here, and then liquidity blocks
111. 4:04being number two, I I guess you could
112. 4:06say. But, we aren't just taking entries
113. 4:08off liquidity blocks. We need to
114. 4:09understand that liquidity first. If you
115. 4:11don't, you're all you're going to be
116. 4:13doing is plotting on highs and lows that
117. 4:14have been taken out, taking entries
118. 4:16left, right, and center, and you are are
119. 4:18going to accumulate a lot of unnecessary
120. 4:21losses, okay? So, that's kind of like
121. 4:22your disclaimer, I'll say before we
122. 4:24continue on with this video. If we're
123. 4:26going to identify liquidity blocks,
124. 4:29number one I can point out right here,
125. 4:31just following on from left side of the
126. 4:33screen to right side of the screen,
127. 4:34price has sold off taking this internal
128. 4:36low, printing what could be a liquidity
129. 4:38block for us. Of course, you need to
130. 4:40pair it with liquidity. And again,
131. 4:41that's not the purpose of this video,
132. 4:43but check this out. If I grab this whole
133. 4:45low, this blue circle,
134. 4:47drag this blue box over, look how we tap
135. 4:50right into that liquidity block and move
136. 4:52away. Now, is it Did this whole sequence
137. 4:55Did this whole move just occur because
138. 4:57the LB, because the liquidity block? No.
139. 5:00You need to pair it with liquidity.
140. 5:03All the liquidity block does for you
141. 5:04essentially is provide you a level to
142. 5:07place your stop loss. What do I mean by
143. 5:08that? Let's just say you took this
144. 5:10entry, your stop loss would go at the
145. 5:12low of the liquidity block. You see what
146. 5:14I mean? It provides us a level to put
147. 5:16our stop loss, aka no liquidity block,
148. 5:20no stop loss. So, we need an LB to take
149. 5:23an entry, of course. So, there would be
150. 5:25a bullish example for you. Of course, on
151. 5:27the flip side,
152. 5:28as simple as this, you have a
153. 5:31level of liquidity taken out here, so
154. 5:33this whole area can be used as an LB.
155. 5:36You have to also understand that
156. 5:38not every LB we're going to be taking
157. 5:39entries off of. So, this is why I'm
158. 5:41marking this one on. Yes, we reacted off
159. 5:44it. However,
160. 5:45just because it's an LB does not mean
161. 5:47we're going to enter off it. But, it's
162. 5:49important to identify them because look,
163. 5:51you can anticipate this false reaction
164. 5:54here, this pullback. And of course, if
165. 5:56there's a bullish opportunity, you buy
166. 5:57back up. It's important to identify yes,
167. 5:59this is an LB, but no, it's not an LB we
168. 6:02would take an entry off of. So, there's
169. 6:03a big difference there and that's the
170. 6:04lesson in that one. You can see here,
171. 6:06another one. It happens over and over
172. 6:08and over. We have a love liquidity taken
173. 6:10out and we tap into it and there's a
174. 6:13reaction. And that alone is so so
175. 6:16powerful.
176. 6:17Yes, it's important to note that we're
177. 6:19not taking entry off every liquidity
178. 6:21block,
179. 6:22but it is important to have the
180. 6:24understanding of the liquidity block as
181. 6:25a whole. Now, if we continue on with
182. 6:27price action, let's see if we can find
183. 6:28any others for you. We end up tapping
184. 6:30into this one on the left-hand side and
185. 6:31then we run bullish all the way back up.
186. 6:34You can argue and say this isn't the
187. 6:35cleanest one, but again, it makes sense.
188. 6:37If I grab that last high before the LB,
189. 6:39you can see how we tap into it.
190. 6:41Reaction. Not an area we would be
191. 6:43entering off of, but yes, it's an area
192. 6:46that can provide a reaction.
193. 6:48Then what happens afterwards?
194. 6:51Check this out. We can see how price has
195. 6:53swept out a level of liquidity. All we
196. 6:54can do, we can just do this all in the
197. 6:5615-minute time frame to make this very
198. 6:57easy.
199. 6:58And here you have an area that we would
200. 7:01use
201. 7:02as an entry, but again, a liquidity
202. 7:04block. This would act as that level
203. 7:07where we would place our stop loss just
204. 7:08like this. So, entry,
205. 7:11stop loss goes below. Now, I see a lot
206. 7:13of people don't make this mistake. I see
207. 7:15a lot of people getting greedy or just
208. 7:17placing it in random levels. No, you
209. 7:20want to keep it as repeatable and
210. 7:21systematic as possible. Use the low as
211. 7:24the level to place your stop loss. So,
212. 7:27we tap that LB,
213. 7:28there's your entry and you're targeting
214. 7:30whatever it is to the upside. That would
215. 7:32be a bullish example. So, all these
216. 7:34bearish ones, you see how they're still
217. 7:36by the book liquidity blocks, but no,
218. 7:38they're not liquidity blocks that we
219. 7:39would use for entry. Again, it's still
220. 7:41important to identify what is one and
221. 7:44what isn't one. Another one right here,
222. 7:45you can say. You have highs taken out,
223. 7:48taps into the liquidity block,
224. 7:51and there's a reaction.
225. 7:53Right? Yes, it didn't sell all the way
226. 7:54to the downside, but understand this, it
227. 7:56still provided us a reaction in the
228. 7:58market, and that alone is so important.
229. 8:00Now, if I just zoom out, you see how
230. 8:03easy this can be, and I don't want you
231. 8:04guys overcomplicate this. Understand
232. 8:06that if you don't have liquidity down,
233. 8:08if you haven't watched our previous
234. 8:10videos, and you don't understand
235. 8:11liquidity yet, please don't prioritize
236. 8:14the liquidity block. You need to
237. 8:15understand liquidity first, and then you
238. 8:18move into the liquidity blocks for your
239. 8:20entries, of course.
240. 8:21All right, guys. I hope you enjoyed
241. 8:22today's video on the infamous liquidity
242. 8:26blocks. It is not too complicated. It's
243. 8:28quite simple, to be fair. But again,
244. 8:30it's important to understand that you
245. 8:32need to build a story first in your
246. 8:34trade, aka the bias, the direction,
247. 8:36which comes from liquidity, and then we
248. 8:38will use the liquidity blocks for our
249. 8:40entries. If you guys did enjoy today's
250. 8:42video, please leave a like, a comment
251. 8:44down below, turn those notifications on.
252. 8:46We'll see you in future videos. Take
253. 8:48care.