Liquidity Inducement Masterclass Ep. 1 | Inter Equity Trading — Transcript

Full transcript

1. 0:00What's going on, guys? Welcome back to
2. 0:02another interquity trading video. Today
3. 0:04is the start of a brand new series about
4. 0:07liquidity and inducements. There's a lot
5. 0:09of fluff in the industry about the word
6. 0:11inducements. In my opinion, people are
7. 0:13kind of just using the word everywhere
8. 0:15and over complicating things. In this
9. 0:17series, I am going to be explaining to
10. 0:19you guys exactly how we use inducements,
11. 0:22why it's important, and why it's so
12. 0:24powerful on these charts. So, today is
13. 0:26going to be episode one. I'm going to be
14. 0:28doing multiple episodes, making sure you
15. 0:30guys understand everything about it.
16. 0:31Without further ado, let's hop right
17. 0:33into the charts.
18. 0:35[Music]
19. 0:37All right, guys. So, we have two very
20. 0:40straightforward and simple diagrams in
21. 0:43front of us. Um, some of you may refer
22. 0:45to this as a bullish trend, uh, bullish
23. 0:50market structure shift, bullish BOS,
24. 0:52how, whatever you want to call it. And
25. 0:54then vice versa over here. maybe bearish
26. 0:55trend, bearish market structure shift,
27. 0:57whatever terminology you guys want to
28. 0:59use. Um, but in these two examples, this
29. 1:02bullish example and this bearish
30. 1:04example, we're going to be discussing
31. 1:06and breaking down, making sure you guys
32. 1:08understand everything about these moves,
33. 1:10this low to high to low to new high, the
34. 1:13purpose of it, all the important
35. 1:15components. So, first what we're going
36. 1:17to do is talk about this bullish example
37. 1:19to the left hand side. What can we see?
38. 1:21The market has printed a low and then a
39. 1:25high. Okay. Then we had a retracement to
40. 1:29the downside printing this low we have
41. 1:31here. Okay. And then we had that bullish
42. 1:34move to the upside. Okay. This is very
43. 1:37very important. And I'm sure you guys
44. 1:39have heard it in previous videos now
45. 1:42talking about trades uh or just talking
46. 1:45about liquidity as a whole and
47. 1:46inducements. This move and we're going
48. 1:49to circle this from low to high is very
49. 1:52very important. It induces buyers into
50. 1:56the market. Okay. Now, some of you guys
51. 1:58may ask me what does that mean? Since we
52. 2:00had this bullish move to the upside
53. 2:01again from this low to this high, retail
54. 2:04is going to view this as there's
55. 2:06momentum. Okay, we have momentum to the
56. 2:09upside. So, what's naturally going to
57. 2:11happen is people that trade based off
58. 2:13patterns without any sort of logic and
59. 2:15reasoning behind their analysis
60. 2:17automatically they're going to be
61. 2:19looking for areas of interest to the
62. 2:21downside. For example, maybe this high
63. 2:24that was used as resistance might be
64. 2:26used as support now. Okay? Or maybe you
65. 2:29have retail traders such as maybe um
66. 2:32like SM SMC traders that want to see
67. 2:35this high taken out. Again, let's label
68. 2:37this on to make this a little bit easier
69. 2:39for you guys. We'll view this as BOS.
70. 2:41And then maybe they want to wait for a
71. 2:43price to come into their area of
72. 2:44interest down here. Some sort of POI,
73. 2:46some sort of order block, right? And
74. 2:48then they want to take their longs. So,
75. 2:50the importance behind what we're going
76. 2:52over right now is making sure you guys
77. 2:53all understand this move from low to
78. 2:56high. This induces buyers into the
79. 3:00market. The market typically after
80. 3:02taking out this high will come down. All
81. 3:04right? We'll have pullbacks. That's
82. 3:06usually what happens after we have BOS's
83. 3:08or market structure shifts. We'll have a
84. 3:09pullback, okay? Cuz there was some
85. 3:12resting liquidity above this high and
86. 3:14that's why we see this move now
87. 3:16occurring. What typically happens is you
88. 3:18can see the market respect these areas
89. 3:20and it's done on purpose. Okay? So
90. 3:22that's why somehow or sometimes you guys
91. 3:24see me take short entries in this area
92. 3:26and I'll target the downside cuz I
93. 3:28understand that buyers enter in this red
94. 3:32box. Okay? maybe support and resistance,
95. 3:34Fibonacci, whatever you guys want to
96. 3:36call it. Previous high rejected, now
97. 3:38this low is going to get rejected. Okay?
98. 3:40So, the market purposely reacts off
99. 3:41here. And then you have that relief to
100. 3:44the downside. Remember what we spoke
101. 3:45about before? Maybe there's another POI
102. 3:47here. Since buyers are are induced in
103. 3:50the market, I'm going to write this out
104. 3:51for you guys. Buyers induced. Buyers are
105. 3:54inclined to buy this market. Buyers want
106. 3:57to be involved in this market. The
107. 3:58market will give another reaction. All
108. 4:01right? Right? And would you look at
109. 4:02that? Sometimes even and we're going to
110. 4:04draw this out in a little bit of a
111. 4:05different scenario here. We'll have a
112. 4:07high left and then market will come down
113. 4:10to the downside tap into this area for
114. 4:13retail for smart money concepts for
115. 4:15breaking uh break of market structure
116. 4:17traders. Then they'll get the push to
117. 4:19the upside. Now look what's happened
118. 4:20again. Same thing but just on a smaller
119. 4:23scale. We're going to mark this out.
120. 4:26Break a structure.
121. 4:28So, based off what I've just taught you
122. 4:30guys on the bigger perspective, what do
123. 4:34you think is going to happen again? We
124. 4:35have maybe this area here that could be
125. 4:37used as an area buyers want to be taking
126. 4:40entries and then we'll push the new high
127. 4:42sometimes. But then what you'll see is
128. 4:43boom. And then would you look at that?
129. 4:45We're coming into areas of interest at
130. 4:46the low again. This is where buyers want
131. 4:49to be buying. But we understand that
132. 4:51buyers are induced. We want to be
133. 4:53targeting the downside. So, this is
134. 4:56going to be used as a trap, okay? And
135. 4:59expect false reaction sometimes. And
136. 5:02then overall, what you're going to
137. 5:04anticipate and expect is this move back
138. 5:06down, okay? Finally taking out the
139. 5:09buyers
140. 5:10at this low. Why this low, you guys ask?
141. 5:14Well, think about this from a big
142. 5:15perspective. Remember, we took out this
143. 5:17previous high, printing a new high.
144. 5:19Buyers are induced in the market. So,
145. 5:22look how they're entering here. They're
146. 5:24entering here. They're entering here.
147. 5:27Why? All based off patterns. That's it.
148. 5:30Based off patterns. No logic, no
149. 5:33reasoning behind their analysis. They're
150. 5:34just waiting for some sort of high to
151. 5:36get taken out. Okay. Then a pullback to
152. 5:38occur and they're buying in here.
153. 5:41Okay. Expecting price to push up. But
154. 5:44no, it gives them the false reaction.
155. 5:46Now, this is usually a sell a sell
156. 5:48opportunity back down to the downside to
157. 5:50target the lows. Okay. But again, the
158. 5:53main focus of this diagram, what I
159. 5:55really want you guys to understand is
160. 5:57understanding that this low pushes to a
161. 6:00new high and induces buyers. So this is
162. 6:04now a buyer market. Okay, for retail, we
163. 6:08don't buy in this scenario, but retail
164. 6:10will be buying. And now let's work on
165. 6:12the bearish example. Okay, again, taking
166. 6:14everything we just learned from the
167. 6:16bullish. Now you just want to flip it.
168. 6:17You want to invert that learning I just
169. 6:19gave you guys. Okay, so same thing.
170. 6:21Let's copy and paste from this side. BOS
171. 6:24to downside. Why is this important?
172. 6:27Since we have this high pushing to new
173. 6:30lows, this is now going to be inducing
174. 6:33sellers. Sellers are induced. Sellers
175. 6:36want to be selling this market. Okay, we
176. 6:38don't want to be doing that. But this is
177. 6:40what retail, okay? Whatever you guys
178. 6:42want to call it. This is what this I
179. 6:44understand that liquidity is going to
180. 6:45get built to the upside now via the
181. 6:47seller liquidity. Okay, so same thing
182. 6:50can happen. this low rejected something
183. 6:52from the past. Understanding that now
184. 6:54retail are going to be using these
185. 6:55regions as possible rejections. So
186. 6:57again, you can anticipate that the
187. 6:59market will come and test these areas
188. 7:00sometimes, okay? And give a reaction,
189. 7:02but typically that just gives us an
190. 7:04opportunity to buy. So you'll notice
191. 7:06sometimes that I'm going to be buying
192. 7:07these areas down here, targeting new
193. 7:10highs, okay? And then same thing occurs.
194. 7:13Look, we'll get a low sometimes and then
195. 7:15go up, respect the high, come down.
196. 7:19Same thing that's occurred over here is
197. 7:21happening here just on the flip side.
198. 7:23BOS for retail. So, taking what I just
199. 7:26taught you guys on the previous bullish
200. 7:28example and now in this in the sell
201. 7:29example, who's induced here? Sellers.
202. 7:32Okay, they want to be selling where in
203. 7:35here. Again, what typically happens is
204. 7:37the market will come all the way back
205. 7:39and respect it. Now, you have to ask
206. 7:42yourself why. Why are we respecting this
207. 7:44region to the lefth hand side from a
208. 7:45retail perspective? Remember, simple
209. 7:47stuff.
210. 7:49Low taken, sellers want to be entering
211. 7:51in at this high. Same thing here. Low
212. 7:54taken, sellers want to be entering in at
213. 7:56this high. All right, so we understand
214. 7:59that. Now, this goes back to all the
215. 8:01other videos I've been showing you guys.
216. 8:03This is when we like to buy. These are
217. 8:05the times we like to buy in these
218. 8:07regions because why? We have now just
219. 8:10engineered liquidity to the upside, aka
220. 8:14seller liquidity. Every single time the
221. 8:17market takes out a low, it's inducing
222. 8:19sellers. I'm going to draw this on as
223. 8:20well just to show you guys. Look, we
224. 8:22take out this low. The market reacts off
225. 8:24the high once, twice, three times.
226. 8:27That's when we look to buy back up.
227. 8:30Boom. Right here. So, it's basically the
228. 8:32same example as the bullish one. You
229. 8:33look to sell here. You'd look to buy
230. 8:35here. All right. So, essentially to sum
231. 8:37everything up that I've just taught you
232. 8:39guys, whenever buyers are induced, we do
233. 8:41not want to be buying that market. We
234. 8:43want to wait. We want to identify where
235. 8:45the buyers are getting in from. Wait for
236. 8:47them to get trapped and then we look to
237. 8:49buy back up. Now, in the sell example,
238. 8:51we want to wait for sellers to get
239. 8:53induced. Okay? Not only do we want to
240. 8:55wait for this low to get taken, we want
241. 8:57to see them enter the market. Okay? We
242. 8:59want to have an actual reasoning that
243. 9:01the sellers are entering. And look what
244. 9:02we've have here. This whole area we're
245. 9:04inducing sellers where from the lefth
246. 9:07hand side. Okay? So again, you wait for
247. 9:10these sellers to get induced,
248. 9:12then they get trapped. Now you look for
249. 9:15that sell back down. What typically
250. 9:16happens in this scenario, of course, it
251. 9:18depends on higher time frame, but what
252. 9:19typically happens in this scenario is
253. 9:21after the sellers are trapped, that's
254. 9:23when the move occurs back down. And
255. 9:25these are the moves you want to be
256. 9:27involved in. All right, guys. I hope you
257. 9:29enjoyed today's video. Since it's a
258. 9:31brand new series, let me know what you
259. 9:33guys think. Do you guys like it? Do you
260. 9:34guys want me to dive deeper? Make
261. 9:36episode 2, 3, 4. What did you not
262. 9:38understand? Let us know in the comments
263. 9:39down below. If you guys did enjoy, toss
264. 9:41a thumbs up. Subscribe if you guys have
265. 9:43not already. We have lots more content
266. 9:45coming your way. So, we'll see you soon.
267. 9:47Take it easy.