Liquidity Inducement Masterclass Ep. 2 | Inter Equity Trading — Transcript

Full transcript

1. 0:00What's going on guys? Welcome back to
2. 0:02another inter equity trading video.
3. 0:04Today, we're going to be continuing on
4. 0:06with the series liquidity inducements.
5. 0:08This is when things start getting
6. 0:09interesting and maybe a little bit
7. 0:11complex. So, please bear with me.
8. 0:13Rewatch this video as much as needed cuz
9. 0:16I start going really in-depth with
10. 0:17liquidity and inducements. So, when
11. 0:19things start getting a little bit
12. 0:20confusing, if you need to rewatch it,
13. 0:22please go back and rewatch it. Okay,
14. 0:23take your time watching these videos. If
15. 0:25you guys enjoy these, please leave a
16. 0:26like and a comment down below. Let us
17. 0:28know what videos you guys want to see
18. 0:30next going forward. Subscribe if you
19. 0:31guys have not yet already. We have a lot
20. 0:33more videos coming your way.
21. 0:36[Music]
22. 0:38All right, guys. So, we're going to head
23. 0:39back to the diagrams. Again, we need
24. 0:40these diagrams for you guys to
25. 0:42understand the foundation behind
26. 0:44liquidity and inducements. So, this
27. 0:46diagram here is going to get actually
28. 0:47quite complex and we're going to have a
29. 0:48lot of annotations on the screen. So,
30. 0:50please follow along accordingly and
31. 0:53rewind if you have to. If you need to
32. 0:55rewatch the video, that's no problem at
33. 0:56all. We're going to start with some
34. 0:57simple stuff here.
35. 0:59What do we have in front of us? Simple
36. 1:00stuff. As you guys already know, low
37. 1:02taking out, which means sellers induced.
38. 1:06The market comes back to the high, which
39. 1:07tells us sellers are entering here and
40. 1:09again we move to the downside, pushing
41. 1:12to new lows taking out previous lows.
42. 1:14So, what do we have in front of us right
43. 1:16now?
44. 1:18We have a point of liquidity at the
45. 1:19highs. Why is this liquidity? Very
46. 1:22simple stuff. High respected high and we
47. 1:26moved to the downside. Okay? We should
48. 1:28all know this by now. So, we're simply
49. 1:30going to grab that high and drag it
50. 1:32over. No problem. Following this big
51. 1:34sell-off to the downside, we get a push
52. 1:36higher printing a high, a low, and
53. 1:39finally a new high in the market. Now,
54. 1:41what do we have in front of us? Since we
55. 1:43have taken out new lows, we'll simply
56. 1:44right here sellers induced. After that,
57. 1:47price prints low, high, low, and new
58. 1:50high taking out previous highs. So, that
59. 1:53will mean buyers are induced here. Very
60. 1:55simple. Following that, check this out.
61. 1:57This is where people start getting
62. 1:58tricked. The market gives us a low
63. 2:02and a new high. So, this is where people
64. 2:04start making some mistakes.
65. 2:06Let's mark this on. Price taking out a
66. 2:08new high, which tells us what? Same
67. 2:09thing. Buyers are induced. So, we can
68. 2:12mark that on here and that also tells us
69. 2:13if price comes down to this region down
70. 2:15here, down to this low, this is where
71. 2:17retail wants to buy from, right? And of
72. 2:19course, they want to see that
73. 2:20continuation higher. However, we do not
74. 2:22trade like that. We want to see buyers
75. 2:25trapped. Okay, so what tends to happen
76. 2:27is the market will come down to the low,
77. 2:29give us a little bit of a false reaction
78. 2:31higher, okay? But overall, push lower.
79. 2:34This is what we want to see. Now, let's
80. 2:36continue following along with the
81. 2:38annotations here. Let's mark out this
82. 2:39low and again, sellers induced. Of
83. 2:43course, very easy. Why sellers induced?
84. 2:45Since we've taken out this low, sellers
85. 2:48view this as a break of market structure
86. 2:49to the downside and they want to be
87. 2:51pushing price lower. Okay? We understand
88. 2:54that, so that means sellers are induced.
89. 2:55However, now there's a new thing. Buyers
90. 2:59are also trapped. Why are buyers
91. 3:01trapped? Well, since buyers were
92. 3:03entering positions here and they give a
93. 3:04false reaction higher, as soon as the
94. 3:07market takes out the lows, buyers have
95. 3:09been trapped. So, again, sellers
96. 3:10induced, buyers trapped. Perfect. Now,
97. 3:13look at the market does here and this is
98. 3:15where people start making a lot of
99. 3:16mistakes. We get a sharp reaction to the
100. 3:19upside taking out this high we have
101. 3:20right here. Why is this important? Since
102. 3:23we have taken out that high, buyers are
103. 3:25induced and sellers are trapped. Now,
104. 3:28why are sellers trapped? Since the
105. 3:30market has taken out this low. This is
106. 3:32the same thing over and over. This high
107. 3:34here was a trap. They are going to be
108. 3:36selling below that high, but since that
109. 3:38high is now got taken out, sellers are
110. 3:40now trapped. And what happens right
111. 3:41after that? We get a quick move down to
112. 3:44the downside. All right. Now, this move
113. 3:46here, this is where a lot of people make
114. 3:48that mistake. Since price has taken out
115. 3:51this high here,
116. 3:53how many of you guys are trying to buy
117. 3:54this low expecting price to go higher?
118. 3:58No, that's not how the market operates
119. 3:59here. The market will always hunt for
120. 4:01that liquidity and since we have it
121. 4:04induced buyers by taking out this high,
122. 4:07that tells me buyer liquidity down at
123. 4:09the low. So, look, the market comes down
124. 4:12and traps people at the low. So, now
125. 4:14let's annotate this. Buyers trapped and
126. 4:17sellers induced. Perfect. What does that
127. 4:19tell us? Trap. The market starts going
128. 4:22long.
129. 4:23And check this out. We get high, low,
130. 4:26new high,
131. 4:27low,
132. 4:28buyers entering positions here. Same
133. 4:30thing over and over. And then we push
134. 4:32push to new highs. When we come into an
135. 4:34area that sellers want to see price at.
136. 4:37Okay? Sellers want to see a sell-off to
137. 4:39the downside here.
138. 4:41However, remember what's happened. We've
139. 4:43taken out this low, sellers induced,
140. 4:45buyers trapped, which means we want to
141. 4:48be participating in buys. How do we
142. 4:50involve ourselves in buys? Again, this
143. 4:52is where everybody makes that mistake.
144. 4:53We need to see liquidity taken to the
145. 4:55downside. Look what we've done here.
146. 4:57We've taken out a high and respected the
147. 4:59low. So, simple stuff. That's That's a
148. 5:02form of liquidity for us. We're going to
149. 5:04grab that low and drag it over to the
150. 5:06right. Now, remember what we need to
151. 5:07expect at the highs. This is going to be
152. 5:09an area that sellers want to push price
153. 5:11away. This is going to be an area that
154. 5:13sellers will be getting trapped from.
155. 5:15Okay? So, what tends to happen is the
156. 5:18market will give that false reaction and
157. 5:20they'll even come down to the low, give
158. 5:22a false reaction, and then finally the
159. 5:25trap occurs taking out any buyers that
160. 5:28were looking to buy this thing above
161. 5:30these lows. So, as soon as this occurs,
162. 5:33this is your signal to buy right here.
163. 5:36And our stop loss is always going to be
164. 5:37covering the low right underneath. We
165. 5:40need to be covering this low right here.
166. 5:42All right. So, stop loss covers that low
167. 5:44and now we're going to be targeting all
168. 5:45of that liquidity
169. 5:47to the upside. All right. So, there's a
170. 5:50lot of annotations on the screen right
171. 5:51now. 100% I understand that, but please
172. 5:55understand that every single move here
173. 5:57had intention. There was reasoning.
174. 5:59There was logic. Okay? And the I would
175. 6:01say the most important part to this
176. 6:03whole diagram right here is
177. 6:05understanding this bit. That we have
178. 6:07taken out this high, which induces early
179. 6:10buyers. Okay, then we get this move from
180. 6:12high
181. 6:13to low trapping those buyers. Okay,
182. 6:17that's the most important part there.
183. 6:18Okay, you guys need to understand that.
184. 6:20As soon as that occurs and we print this
185. 6:23low right here,
186. 6:24you know where your eyes have to be at
187. 6:26You know where your eyes have to be
188. 6:27glued to? Right away, these highs. So,
189. 6:30this is where you want to look to start
190. 6:31buying and then of course, here as well.
191. 6:34After this buy opportunity is presented,
192. 6:36usually we can screw around for a bit
193. 6:37and then finally you'll get that move
194. 6:39all the way to the upside. So, again,
195. 6:41there's a lot of annotations on the
196. 6:42screen right now and it might look very
197. 6:43noisy. However, please rewatch this
198. 6:46video as much as needed. There is gems
199. 6:49on gems on gems. A lot of value in here,
200. 6:51guys. All right, I hope you enjoyed
201. 6:53today's video. Now, going forward, we're
202. 6:56going to start diving into some charts,
203. 6:58but again, I wanted to do these first
204. 6:59couple of videos, these first couple
205. 7:01episodes on diagrams to make sure you
206. 7:03guys understand the foundation of all
207. 7:05this stuff. If you guys enjoyed the
208. 7:06video, please leave that like, leave a
209. 7:08comment down below. We'll see you guys
210. 7:10soon. Take care.