YT YouTube2Text

YouTube2Text → Transcripts → MASTER Liquidity Concepts in 93 Minutes (Full Trading Course)

MASTER Liquidity Concepts in 93 Minutes (Full Trading Course) — Transcript

by Mind Math Money · 16,482 words · 2,210 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00In this free video course, you will
0:02learn everything you need to know about
0:04liquidity for trading stocks, crypto,
0:07forex, or any other financial market. By
0:11the end of this course, you will not
0:12only be able to trade liquidity concepts
0:15like a pro, but you will also learn
0:18about multiple advanced liquidity and
0:20order flow techniques that most traders
0:23don't know about.
0:26All right. So, hello guys and welcome
0:28everyone to this full course on
0:31liquidity and how to trade liquidity
0:35concepts. Liquidity is one of these
0:37terms that get thrown around in the
0:39trading community a lot and it's a term
0:42that is misunderstood by so many
0:45traders, especially beginners. And from
0:48my experience, even many trading
0:50educators on places like YouTube or
0:53elsewhere are [snorts] also
0:54misunderstanding liquidity or explaining
0:57it in way too complicated terms. So, my
1:01goal with this course right here is to
1:03break down liquidity in as clear and
1:07simple terms as possible so you can
1:09become a trader and start making more
1:13money. But now then, let's real quickly
1:16take a look at what you can expect to
1:18learn in this trading course. And here,
1:22the very first thing you need to know
1:23about to master liquidity is the three
1:27order types. And you also need to
1:29understand how they create every move on
1:33the chart. So this is the very important
1:36foundation that you know the course will
1:38build upon. We will also of course talk
1:41about what liquidity actually is. When
1:44you know what liquidity is and the main
1:46order types, we are ready to move on
1:49here and take a look at something known
1:51as buy side and sellside liquidity or in
1:55other words BSL and SSL. And we will
1:58also take a look at why the price or to
2:02be more precise why smart money often
2:04hunts liquidity. After we know about buy
2:08side and sell side liquidity and some
2:10other stuffs uh stuff, it's finally time
2:13to take a look at some specific price
2:16patterns. And I'm talking about
2:18liquidity sweeps, liquidity grabs, and
2:21liquidity runs. These are three specific
2:24liquidity patterns that you can start uh
2:27that you will know how to trade after
2:30this course. Uh the next step here is to
2:34move on and take a look at something
2:36called bar value gaps and we will
2:39actually also touch upon orderflow tools
2:43and orderflow is basically when we look
2:45inside the candlesticks we read you know
2:48what happened and what created the
2:51candlesticks. We will also take a look
2:53at a concept called a liquidity heat
2:57map. Uh but these concepts are a little
2:59bit advanced. So what I do highly highly
3:03recommend in this course is that you
3:05watch the chapter uh chapters in order
3:08because I have built this course in a uh
3:10you know very sort of stepbystep manner
3:13as you can see on this image right here.
3:15So each chapter will build upon uh the
3:19previous chapter. So, I highly recommend
3:21to watch the chapters in order, but if
3:23you want to jump around, maybe rewatch a
3:26part uh and so on and so on, I will make
3:28sure to include YouTube
3:29timestamps/chapters
3:31so you can jump around in the video. Uh,
3:33but now guys, I highly recommend that
3:35you put this video in full screen. Uh,
3:39you know, remove the distractions, maybe
3:42put your phone in another room or do
3:44what you need to do. Maybe grab a
3:46coffee. I also recommend to grab a
3:48notebook because this you know you
3:50really want to be focused throughout
3:53this whole course. So remove all
3:55distractions and then we are ready to
3:57move here to chapter one. All right. So
4:00now before we can start trading using
4:02liquidity and liquidity concepts we of
4:05course need to answer the question what
4:07is liquidity? And here liquidity is one
4:11of these terms that can be hard to
4:13understand in the beginning but I will
4:15try my very best to uh explain these
4:18terms in super simple terms. So in very
4:20simple terms liquidity is simply
4:23[snorts] how easy it is to buy or sell
4:27something quickly without moving the
4:31price.
4:33So one sort of way to think about this
4:36is you know if you look at this image
4:38right here I try to really demonstrate
4:40the difference here between uh a sort of
4:42high liquidity uh you know in real life
4:45market and a low liquidity in real life
4:47market. So if we have a for example a
4:50farmers market like like we have here to
4:53the right you can see that we have many
4:56buyers and sellers that are buying and
4:58selling all the time and because we have
5:01you know trading happening all the time
5:03that means that the prices will stay
5:05around the same because of competition.
5:07So no one can come in here and sell I
5:09don't know tomatoes for $100 a piece.
5:12that doesn't really work because there
5:14will be other sellers that sell it for
5:16much less and so on and so on and one
5:19big buyer can't really come in and buy
5:21everything in the market. So the price
5:23will stay much more stable and it will
5:25be easy to buy and sell stuff. But if we
5:28instead look at the image here to the
5:30right, this is what I try to to show an
5:33example of a low liquidity market. So if
5:36we have for example an antique shop
5:39where we maybe only have you know one
5:41buyer and one seller at a time this
5:44means that the price will you know first
5:47of all move much more slowly. we will
5:50have fewer transactions, right? But what
5:53it also means and this is very important
5:55is that if one buyer comes in and let's
5:58say this buyer really wants this vase
6:02right here, he can actually affect the
6:05market himself. Maybe, you know, the
6:07seller realizes that that he really
6:09wants the vase and he can then, you
6:12know, increase the price of the vase and
6:15only sell it uh, you know, for [snorts]
6:17higher prices. I hope this gets a little
6:20bit intuitive understanding of what
6:22liquid high versus low liquidity. When
6:25you think about high liquidity, think
6:26about lots of buyers and sellers and
6:29that the price moves more smooth like
6:32right here. And when you have low
6:33liquidity, think about less buyers and
6:35sellers and more, you know, uh they can
6:38affect the price more easily. So here
6:42the more buyers and sellers there are at
6:44every price the more liquidity and the
6:48smoother the price moves. So think about
6:50it like this high liquidity equals price
6:54moves more smoothly. Low liquidity means
6:58price jumps in big chunks. And here and
7:02this is very important and you will
7:04learn about this throughout the course.
7:06most traders are the liquidity that
7:10smart money uses. So, so smart money
7:13traders are basically the the big boys,
7:16the traders with lots of money like
7:18hedge funds, banks and so on and so on.
7:20And we will talk about later on in this
7:21course how these traders can actually
7:24manipulate the price to take advantage
7:26of you and your liquidity. But for now,
7:28you don't need to worry about that too
7:30much because I want to jump into trading
7:32view and show you an example of low
7:35versus high liquidity.
7:37All right, guys. So, now we are in
7:40trading view. And I actually have two
7:42charts up right here. On the left, you
7:44can see that we have uh the Bitcoin
7:47chart open and we are right now on a
7:49fivem minute time frame. So, every
7:51candlestick represents five minutes of
7:53trading. And on the left here I have a
7:56much smaller cryptocurrency known as a
7:58Jasmi. And we are also here on the
8:01fiveinut time frame. But the reason I
8:04chose these two charts right here is
8:06simple. This chart to the left is an
8:09example of a high liquidity chart. While
8:14the chart here to the right is an
8:16example of oops a low liquidity chart.
8:20And how can we see this? Well, the first
8:24sign that I hope you can see, let me
8:27make this chart a little bit bigger, is
8:29that the price to the left here on the
8:32uh uh high liquidity chart is much more
8:36smooth. You can see here every
8:38candlestick looks like a normal candle.
8:40You can see here to the left all the
8:42candles looks normal. We have you know
8:45uh some candles with big bodies. We have
8:47some wicks right here for example like
8:50shooting star. But if you look at the
8:52low liquidity example, I hope you can
8:54see that the candlesticks looks like you
8:57know very ugly to to put it blunt. You
8:59know the candles are looking ugly. And
9:01what you will also see if we zoom in
9:04here is that you will see many candles
9:06that look for example something like
9:08this. You can see right here we have two
9:10candles that are just lines. This right
9:13here is a classic example of very low
9:17liquidity because this means that during
9:19this time pretty much no trades were
9:22executed. Maybe a few trades but not
9:24enough trades to actually move the
9:27price. So very low amount of trading.
9:30And what you also can see is that we
9:31have these gaps. When we have gaps on
9:34the fiveinut chart, that is a clear
9:37warning sign that we're talking about
9:39low liquidity. So this is a tip I can
9:42already give you guys that when you see
9:44a chart like this when you have many
9:47ugly candles uh you will have many
9:49candles without wicks for example right
9:51here you will have many candles that are
9:53used lines for example right here this
9:55is an indication of very low liquidity
9:58and these markets are in general both
10:00much harder to trade but they are also
10:03much easier for people with lots of
10:06money to manipulate. So my tip here for
10:10most beginners is to really try to avoid
10:14low liquidity markets right here and
10:16focus on high liquidity markets when we
10:19have you know nice and smooth price
10:22action. All right. So now then now let's
10:25take a look at the three types of orders
10:29every single trader needs to know about.
10:32You know, if you want to make money
10:34trader, you of course need to master the
10:37ways in which you can trade. So, let's
10:40take a quick look here at the main order
10:43types. And the first order type is a
10:46pretty simple one. This one is called a
10:48market order. And this simply means that
10:51you trade immediately at the current
10:54price or in other words, the best
10:56available price. So here to the left
10:59here I try to you know in a visual way
11:02demonstrate all the main order types. So
11:04the market order simply means to trade
11:07now at the current price. And you can
11:09see in this image right here the current
11:10price here is in the middle in the
11:12middle. So a market order uh if this
11:15let's say this is a stock that is
11:17currently trading at $100. If we uh if
11:21we make a buy market order, that means
11:24buy right now for one for one uh for
11:27$100. And if we make a sell market
11:29order, that means that we want to sell
11:31right now for $100. It's super super
11:35simple.
11:36Uh the next order type here is the limit
11:39order. This is a very common order and
11:41that means that you uh trade at a better
11:45price than the current price. So what do
11:47we mean by better price? Well, when you
11:50are a buyer, let's think about it. When
11:51you are a buyer, you of course want to
11:54buy for as low as possible. You know,
11:57that is just a general principle. If you
11:58go to the supermarket, you rather want
12:01to buy cheap groceries than than
12:04expensive groceries. So, a buy limit
12:08order is always set below the price and
12:12the opposite is true for the sell limit
12:15order. So, as you can see right here, uh
12:18if the price once again is at 100 and
12:21you place a buy limit order, you always
12:24place it below the current price. So,
12:26maybe you place it at 96 or 97 or maybe
12:3095, but no matter what, you will always
12:33place it below the current price.
12:36However, a sell limit order is always
12:38placed above the current price because
12:40when you sell something, you always want
12:43to sell it for, you know, as much as
12:45possible. The more the better. So a sell
12:47limit in this case if the price is at
12:49100 might be placed at you know 102 103
12:54or maybe 104. The next order type right
12:57here is known as the stop order. And uh
13:01this is one I think this is the order
13:03that is hardest to understand but it's
13:05still you know if you just pay attention
13:07here I really hope I can explain it
13:09because it's basically just the opposite
13:11of a limit order. So what do I mean by
13:13this? A stop order is a trade that is at
13:17a worse price than the current price. So
13:21this is when we buy above or sell below.
13:26And these orders are actually uh
13:29invisible until they are triggered. So
13:33for example the the the most common stop
13:36order is a sell stop order or in other
13:39words you can think about it as a stop
13:42loss. So this is when we sell below the
13:46current price. So let's say that the
13:47current price is 100 and let's say that
13:51we already have we already own a stock
13:54of 100 but maybe we have done you know
13:57our analysis and we know that you know
13:59if the price goes down to 95 we no
14:02longer want to hold this stock. So here
14:06we actually place an order that if the
14:08price goes down here to to 95 we will
14:12automatically sell. This is what a stop
14:15order is. It triggers uh you know when
14:18it comes to this price and then it
14:20becomes a market order. And here the
14:22opposite is true for the buy stop. So uh
14:26this is when we you know buy something
14:28when it is at a you know higher price or
14:31in other words a worse price. And you
14:33might think about, you know, why would I
14:34want to buy at a higher price? Well,
14:37maybe you did some, you know, technical
14:40analysis and you uh the price maybe is
14:43right now at 100, but maybe your
14:46analysis says that if the price goes
14:49above uh maybe we have a resistance
14:51right here at 105, maybe you want to buy
14:54the breakout of 105. So that can mean
14:57that you don't want to buy at 100, but
15:00you want to wait and if the price goes
15:02above 105, you actually want to buy. I
15:05hope this makes sense. Sometimes it
15:07makes sense to buy at a higher level,
15:09even though that is a worse price. So a
15:13key takeaway here that you can write
15:15down in your notebook, I hope you guys
15:17have your notebook up and and running,
15:20is that your stop-loss in a long trade
15:24is a sell stop. And uh I can also say
15:27that your takerit is a sell limit.
15:31Right? And in short trades, a short
15:35trade is basically when you make money
15:37from the price going down. These two are
15:40flipped. Right. Okay. So now let's jump
15:43back into trading view because I want to
15:45show you guys a quick example of the
15:47different order types and how we can
15:49actually practice trading in trading
15:50view. Uh but before I do that, I just
15:52want to mention that if you for some
15:55reason don't have Trading View yet, you
15:56know, Trading View is the platform I use
15:58for all my technical analysis. I have
16:00been using it for so so long, way over 5
16:03years. Um if you want to get started
16:06with Trading View and try out Trading
16:07View Premium for free, I do have a
16:10special link, the link will be both in
16:12the description and the pin comment. And
16:14if you use that link and then later on
16:16decide that you want to continue using
16:18Trading View Premium or any Trading View
16:20plan, you will get a $15 bonus. So, if
16:23you don't have Trading View yet, make
16:24sure to check out the description. But
16:26for now, to show you guys the orders, I
16:28actually want to go up here to the upper
16:30right corner corner and I want to press
16:32trade because here you can see inside
16:35Trading View, you can actually connect
16:37to many different brokers uh and trade
16:41inside Trading View. But for now, I just
16:43want to show you guys how the orders
16:44work. So, I want to use paper trading.
16:47Paper trading is basically when you when
16:49you practice trading using uh sort of
16:52fake money or paper money here inside
16:54Trading View. It's a great feature of
16:56Trading View where you can just practice
16:58your trading skills basically for free.
17:00So, what I did was I clicked connect
17:02right here. I can uh minimize this
17:05panel. And now you can see that we have
17:07first of all a buy and sell button that
17:09appears up here in the left uh upper
17:12left corner. And we also have a trade
17:13button down here. So you can press
17:15either of these. I'm going to press the
17:17trade button right here. And now you can
17:20see that we have a sort of uh order
17:22window appearing right here. So here you
17:26can see that we have the orders we
17:27talked about. We have the market order
17:29which means that we buy right now at the
17:31current price. we have the limit order
17:33which means that we set the price either
17:36uh below or above the current price. So
17:39for example, if we have a buy limit
17:40order remember then we want to set the
17:43limit order below the current price. So
17:45you can see here on the price for
17:47Bitcoin the price is right now at as you
17:49can see 80,000. So if we set a buy limit
17:52order we need to set it below 80,000. So
17:55we can for example set it at you know 70
17:5775,000.
17:59So if we click buy right here then we
18:02have a uh right now a buy limit order at
18:06this price. Then what we can also set is
18:09as you can see right here we have
18:10something known as takerit.
18:13So this is this would be our target
18:15level if and when this buy limit uh gets
18:18hit and then we have a stop loss which
18:21is the level where we will automatically
18:24sell. So in this case it means that if
18:26the price goes down to our buy limit we
18:29will buy and after that when we have
18:32bought it means that if then the price
18:35goes up to this point we will sell or if
18:39the price goes down to this point we
18:40will also sell. This will determine if
18:43we make a profit or a loss. And here
18:45remember to confirm the order we need to
18:47click confirm right here and that will
18:49lock in our order. To see your current
18:52orders, you can go down here to where it
18:53says paper trading right here. And you
18:55can right now then you go to orders and
18:57you can see that we have this uh we have
18:59this limit order that we set at
19:017075,000.
19:02And if this one gets hit, we have this
19:05uh stop-loss and takerit set as well. Uh
19:09but remember, let me put this one down
19:11right here. Remember [clears throat]
19:13that we can also set for example a uh a
19:16stop order. And remember, if we have a
19:18buy stop order, this order needs to be
19:20above the current price. It means that
19:22if the price goes up to, for example,
19:25let's say we don't want to buy until,
19:28let's make it a little bit more
19:29realistic. Let's say we don't want to
19:30buy it until the price goes above the
19:34high right here. I hope you can see.
19:36Then we can set a stop uh uh a buy stop
19:39order here at maybe around uh 83,000
19:44right there. Then we press buy right
19:46here to lock in the buy stop. And if we
19:48want to, we can also create a takerit
19:51and a stop-loss of this order as well.
19:53But yeah, I hope this demonstration was
19:55helpful and that you now understand uh
19:58limit orders, stop orders, and market
20:01orders. If you don't really understand
20:02it yet, don't worry. Feel free to
20:04rewatch this part or if you have any
20:06questions, of course, let me know down
20:09in the comments. All right. So, now it's
20:11time to take a look at the order book
20:14and the rules of price movement. If you
20:18really want to understand how the price
20:21actually moves, this is something you
20:23can't do without as a trader. So,
20:26really, really pay attention to this
20:28slide right here. But first of all, the
20:31order book has three columns or most
20:35order books have three columns where you
20:37have the price in the middle and then
20:40you have the bid uh the bid side which
20:42is the buyers or in other words it's
20:46limit orders by limit orders and then we
20:49have the ask side which is sell limit
20:53orders on the right. All right. So now
20:55let's take a look at how to read the
20:58order book. So, first of all, we have
21:00the bid side or the buy side, which is
21:03this whole green side right here. And
21:06then we have the uh sell side or the ask
21:10side, this whole red side right here.
21:13And the first columns here are the buy
21:16and sell column. And this is basically
21:19the prices. So to read this you can see
21:22that the first buyers want to buy here
21:25for 2,842
21:28and the volume is how much people want
21:31to buy for this exact price. So to read
21:34this is that uh people want to buy 1,452
21:39at the price of 2,842.
21:44So uh that is how what people want to
21:46buy. And on the sell side, we can see
21:48that people want to sell for 2,850
21:52with a total amount of 647.
21:56And then this goes on and on and on. So
21:59uh a little bit a little bit lower
22:02people want to buy for uh 2840.
22:06How much do people want to buy? Well, a
22:08total of 2,635.
22:10Sales side is the same and so on and so
22:12on. people want to sell for 2,852
22:15and the total amount here is 1,179.
22:21And this right here goes on and on and
22:23on. And here if you look down to this
22:27part of the image, you can actually see
22:29a visual representation of this. So the
22:33bid depth here, this is the market
22:35depth. So the green side is basically
22:38how many limit orders uh you know the
22:42price needs to go through to get to a
22:44certain point. So in this case if the
22:47price were to fall from 2,840
22:52down to uh let's say 2828
22:56the market need to push through all of
22:59these buy limit orders, right? All of
23:03the the green side are buy limit orders.
23:06And if the market wants to go up or in
23:08other words, maybe let's say push up to
23:112,864,
23:14the market needs to eat up all of these
23:17sell limit orders. So the bid depth is
23:20buy limit, the ask depth is sell limit.
23:24And here one very important term you
23:26need to know about is the bid ask
23:28spread. And this is simply the gap
23:31between the highest buy and the lowest
23:35sell. And there are certain traders
23:38known as market makers that that try to
23:41make this gap uh as small as possible
23:43and they actually make money from that.
23:45It's a little bit outside the scope of
23:47this video, but super interesting. But
23:49in this case, if we take a look at the
23:52spread right here, if you look at the
23:54buy side and sell side, uh can you guys
23:57tell me the spread? Well, remember the
24:00spread here is the gap between the buy
24:04side and sell side. So, in this case, uh
24:06the gap between 2842 and 2850
24:11is simply eight, right? It's eight. Why?
24:14Well, the math is very simple. 2850
24:17minus 2,842
24:21is just 8. So in this case we have a
24:24spread of let's say $8. And here I
24:28already mentioned this the market depth
24:30here is basically how much volume that
24:34sits on each price level. And uh a term
24:38you also need to understand is that a
24:40deep book means high liquidity. So when
24:44we have you know lots of orders right
24:46here we call it a deep book. But if we
24:49have a a thin book that means that we
24:53don't have you know we maybe instead of
24:55a mountain like we have right here.
24:58Imagine if this graph instead maybe
25:00looked something like here. That means
25:02that we have a thin book which means
25:05that it's easier for for people to push
25:07the price up and down which leads to a
25:10more volatile volatile moves. Right? If
25:14it's easy to push the price up and down,
25:16the market will be more volatile.
25:19Volatility you can think about is
25:21basically uh you know how much uh how
25:24big the swings up and down are in the
25:27market. So this right here is an example
25:28of a volatile market while a market that
25:30moves more something like this would be
25:32an example of a you know less volatile
25:36market. But here and this is very
25:38important the core rule is that the
25:42price moves when market orders overwhelm
25:47limit orders because and this is super
25:50important to understand because think
25:51about it how does the price actually
25:54move? Well, the limit orders will not
25:56move the price because the limit orders
25:59just uh will just sit here in the order
26:02book. But to actually move the price, we
26:05need to either start eat here from the
26:09uh from the buy limit orders or we need
26:12to start to eat here from the sell limit
26:14orders. And to do that, we need to use
26:17you know market orders. So we basically
26:19take liquidity from the order book. And
26:23a consequence of this is that price
26:25basically stalls when limit orders
26:28overwhelm market orders. But right guys,
26:31so super quick just to show you guys a
26:34live order book and also a sort of live
26:36view of a depth of market. Uh I just
26:40want to jump into Bybit real quick here.
26:43And by the way guys, if you trade crypto
26:45or thinking about trading crypto and
26:47want a sort of jump start, I actually do
26:49have a special link to buy bit. Uh the
26:52link will be both in the pin comment and
26:54the description. And you can use that
26:55link to get, you know, bonuses the more
26:58you trade. Uh you can get up to $30,000
27:02in free bonuses, but most traders will
27:04not get that. Uh but I do think around
27:0680% will get $100 free. So if you want
27:09some free uh bonuses while you're
27:12trading crypto, feel free to check that
27:14that link out. But here, as I said, I
27:16just wanted to show you real quick an
27:18example of an order book. So, for
27:20example, right here you have the order
27:24book, right? You can see the buy side.
27:26So, the green side right here are all
27:28the buy limit orders that are currently
27:31in the market. And you can see that this
27:33changes all the time because we're right
27:35now looking at a live market of Bitcoin.
27:37So, the orders are changing all the time
27:39and people are putting market orders uh
27:42you know both on the buy side and the
27:44sell side. So they are sort of eat
27:46eating from each other and this is you
27:48know how markets work. You can for
27:50example in this in this case you can
27:52maybe see some interesting things. For
27:54example you know when we have sort of
27:56more flat uh periods like right here
27:59during these periods it's less sell
28:02limit orders. So it's easier for a buyer
28:04to move the price. But then we also have
28:06the sort of walls like right here. That
28:08means that we have lots of sell limit
28:10orders. uh but it's hard to show because
28:12the market is moving all the time. Uh
28:14but I hope this was a good you know
28:16simple uh live demonstration of how how
28:20uh the order book and depth of market
28:22can look like. All right. So now it's
28:25time to take a look at buy side and sell
28:28side liquidity or in other words BSL and
28:32SSL. And don't worry if this sounds a
28:34little bit complicated it's actually
28:36very simple. So what is buyside liquid
28:39liquidity? Well, buyside liquidity is
28:43simply the cluster of buy stop orders
28:47that are usually above swing highs. So
28:52these are basically stop- losses from
28:54shorts and breakout entries from longs
28:58because remember here what a buy stop
29:01order is. A buy stop order is when the
29:04price goes above uh a certain a certain
29:08level, it triggers buy orders. So, as I
29:12said, this can either be, you know, from
29:14people that want to buy uh when
29:16something maybe breaks a key level like
29:18a swing high right here. Uh or it can be
29:22short traders because because people
29:24that are going short that are betting
29:26that the market will go down, they
29:28actually set their sort of stop-loss to
29:31the upside. And when the shorts stop
29:33losses get triggered, it leads to buying
29:35pressure. But here the opposite of
29:37buyside liquidity is sellside liquidity
29:40or for short SSL. And this is basically
29:42the cluster of sell stop orders below a
29:46swing low. So this is uh you know often
29:49normal stop- losses from longs but also
29:53uh it can also be breakout entries from
29:56shorts. But the most simple way to think
29:59about it is that many traders, let's say
30:01we have a low right here. Many traders
30:03that just bet that the market will go up
30:05will often place their stop-loss orders
30:08below a key uh low level, right? Uh like
30:12right here. So if the price then falls
30:14below this level, these stop-loss orders
30:17get triggered and it leads to more
30:19selling pressure. And that is what I
30:21tried to demonstrate with with this
30:23image right here. So imagine this is a
30:26market. Maybe it looked like something
30:27like this before. We have a nice trading
30:29range. Uh so here we have, you know, a
30:32swing low. Here we have a uh you know a
30:35swing high. What will often happen with
30:37this swing high and swing lows is that
30:39just above the swing high, we will have
30:42a cluster of buy stop orders. And
30:46remember these orders uh if the price
30:49goes to this price, it will lead to more
30:51buying pressure. And the same thing with
30:53the opposite is true with the sell stop
30:55orders. Below key low levels like right
30:58here we will often have many you know
31:01stop losses and when a stop loss gets
31:04triggered it leads to selling pressure.
31:07So you can think about uh buy side
31:09liquidity as sort of hidden buying
31:11pressure if the price goes to that level
31:13and you can think about sellside
31:15liquidity as hidden selling pressure if
31:18the price goes to that level. But here
31:21and this is very important smart money
31:24remember smart money is you know big
31:26traders like big banks and hedge funds
31:30they will actually often target these
31:33levels. So they will on purpose try to
31:35drive the price to these levels because
31:38if they get triggered it creates a wave
31:41of forced market orders. So if we try if
31:45we trigger buy stops it leads to forced
31:48uh buying pressure right and if we
31:50trigger sell stops it leads to forced
31:52selling pressure and this provides uh
31:56the liquidity that the smart money need.
31:59So many times what smart money will do
32:01and we will talk about that later. Let's
32:03say that we have a key level right here.
32:06So the smart money knows that we have
32:08many buy stop orders above this level.
32:12What they can then do is that they can
32:14uh on purpose push the price into these
32:16buy stop orders which lead to more
32:19buying pressure and the smart why does
32:22the smart money want to see buying
32:24pressure? Well, many times what they do
32:26is that they do this when they want to
32:28sell because they want extra buying
32:31force that they can sell into because
32:33they have so much to sell. Remember
32:36smart money have so much money. So they
32:38need this buying pressure to a to be
32:40able to sell. And this right here is
32:42actually a kind of setup I will talk
32:44about later on in this course that we as
32:47traders can take advantage of to trade
32:50and you know hopefully as a result make
32:52more money. And here a key takeaway from
32:55these slides is that stops whether it's
32:58buy stops or sell stops are you know
33:01relatively predictable. We can't know
33:04exactly, you know, all the buy stops and
33:06sell stops uh most of the time, but we
33:08can look at the chart and try to figure
33:11out where is it most likely that we have
33:14many buying stops and where is it most
33:16likely that we have many sell stops. All
33:20right, so now let's jump back here into
33:22trading view. We are still here on a
33:25Bitcoin chart and we are on the daily
33:28time frame. So every candlestick on this
33:29chart represents one day. Uh but now
33:33let's try to see if we can find you know
33:36some buy side liquidity and sellside
33:39liquidity on this chart. And remember
33:42here buyside liquidity is often found
33:46above key you know swing highs and swing
33:49lows. So the best example on this chart
33:52I can see this is such a good example is
33:55that if you look right here we actually
33:57had not only one high two high but three
34:00highs. And this was the all-time high
34:03for Bitcoin. So this is a level that so
34:05many traders are trading. So many
34:08traders are paying attention to these
34:10levels. So many times there will be a
34:13lot of orders around these levels. So we
34:17can pretty safely assume that you know
34:20above this level right here we had you
34:23know many uh buy stop orders. So
34:25remember if the price reaches that level
34:28it can lead to buying pressure. So maybe
34:30right here, you know, in this case,
34:33maybe right here when the price came up
34:35to this point right here, maybe this led
34:37to buying pressure and maybe that is
34:39what smart money took advantage of
34:41because remember what I talked about
34:42many times the smart money want to
34:44trigger the buy stop orders and then
34:47reverse the price to the downside. So it
34:49looks like this was maybe what happened
34:51right here and I will actually return to
34:53this later on in this course. What you
34:55now need to understand is just that
34:57above this these very important levels
35:00like right here we often have many buy
35:03stop orders and also right here we
35:05probably have many buy stop orders and
35:08so on and so on. U but the opposite is
35:11of course of course also true. If you
35:14for example look right here it's very
35:16possible that we had many sell stop
35:18orders below this key low and maybe that
35:22is what led to the wick right there. Who
35:24knows, right? But a more clear example
35:27of sellside side liquidity. This is a
35:29general tips for you guys that if you
35:31want to find real buyside and sellside
35:34liquidity, it's often good to focus on
35:37the most significant levels, the levels
35:39that are sort of clearly visible on the
35:42chart. So, for example, if we look at
35:44this price movement right here, this was
35:46the brutal crash. uh the date was it was
35:50back here in February when Bitcoin
35:51dropped like you know 14% in a day you
35:55can see that we had you know so much
35:57volume as well right you know brutal
35:59brutal day for absolutely brutal day for
36:03Bitcoin but when we have these uh
36:05moments in time uh that are super clear
36:08and that many traders are pay attention
36:10to these are the levels where we where
36:12it's most likely that we have lots and
36:14lots of uh liquidity so I would not be
36:17surprised if we have lots of sellside
36:20sign liquidity below this low right
36:22here. So if the price eventually goes
36:24down to this level, it's very possible
36:26that we have so many, you know,
36:28stop-loss orders getting triggered and
36:31this usually leads to very interesting
36:33price action. But what I can also just
36:36mention is that one factor to have in
36:38mind is that the longer time it goes
36:42from the price getting triggered. So if
36:45we wait for a very long time before this
36:47uh level gets triggered, it can actually
36:49affect of course you know the sell side
36:52liquidity below this level. All right.
36:55So now it's time to take a look at the
36:57liquidity sweep, the liquidity grab and
37:00the liquidity run. And these are
37:03actually three specific liquidity
37:05patterns you can start trading
37:08relatively quickly. Uh but before you
37:11can do that, we of course need to learn
37:13about the patterns. What are the
37:14different patterns? Well, let's begin
37:16here with the liquidity sweep. And the
37:19liquidity sweep is when price relatively
37:23slowly breaks a swing high or swing low.
37:28And it basically traps breakout traders
37:31and then reverses sharply. So you can
37:35think about it as a more slow and
37:38deceptive trap. And to understand why
37:41the price moves like this, we of course
37:43need to think about, you know, what
37:45happens above key levels. So if this
37:48right here was the key level from
37:50before, you already know that when the
37:53price break these levels, first of all,
37:56many buy orders will come in from people
37:59trying to buy the breakout. Many traders
38:02see the price pushing above the key
38:04level and buys. That's that leads to
38:06buying pressure. But remember here that
38:08we also have short traders that have
38:10their buy stop orders above this key
38:14level. So when the price pushes into
38:18these buys stop orders, it leads to even
38:21more buying pressure. So that is the
38:23first part of the liquidity sweep. You
38:26know, lots of buying pressure and that
38:27is what pushes the price all the way up
38:30to this point right here. But what then
38:32happens with the liquidity sweep is that
38:34smart money sees all of this buying
38:36pressure or they actually you know on
38:39purpose push the price into this level
38:42to to get you know the buying liquidity
38:44so that they can sell and this usually
38:47leads to a sharp reversal here to the
38:50downside. In simple terms, the smart
38:52money starts the selling pressure here.
38:55But once the price uh really start to
38:58fall, we will actually see the traders
39:00that try to buy the breakout right here,
39:03remember they have their stop-loss
39:06orders here to the downside. So once the
39:08price really start to fall to the
39:10downside, many normal stop-loss orders
39:13will get triggered and this leads to
39:15even more selling pressure. So that is,
39:18you know, roughly how the liquidity
39:20sweep plays out. The next pattern, the
39:23liquidity grab, is a relatively similar
39:27pattern. It's actually very similar to
39:29liquidity sweep, but the main difference
39:31here is that the liquidity grab is much
39:34faster. It's usually a fast and strong
39:37wick that pokes through a level and then
39:39immediately reacts. So you can think
39:42about uh a liquidity sweep as a slow
39:44liquidity grab or a liquidity grab as a
39:47fast liquidity sweep. That is the main
39:49difference. U and the liquidity grab is
39:52often, you know, a more obvious
39:55manipulation. As I said, the liquidity
39:57sweep can be a little bit more tricky
39:59and in many times the liquidity sweep
40:01can actually be harder to trade. But if
40:03you look at the example of the liquidity
40:07grab right here, this is a brutal
40:08example, but you see we have a key level
40:11right here. Then the price pushes above
40:14the above this levels. Many new buyers
40:17are coming in. Many buy stop orders are
40:20getting triggered which push the prices
40:22all the way up here. But then someone or
40:25you know multiple people take advantage
40:27of this move and start selling which
40:30then leads to this selling spiral to the
40:33downside. But here last but definitely
40:36not least we have the liquidity run and
40:40this is when the price takes the level
40:44but keeps going. So a liquidity run is
40:48more similar to a real breakout. So this
40:50is when we are not seeing the trap. So
40:54here we have an example of the liquidity
40:55run. We have the same level right here.
40:58But here you can see that the price
40:59breaks the level and then continues to
41:03the upside. So once again you can see
41:05that we want to see the the candle that
41:07breaks the level. We want to preferably
41:10see this candle being larger compared to
41:12the previous candles. Uh in other words,
41:14we want to see a momentum candle. I have
41:17a rule that momentum candles I want to
41:19be, you know, I want the real body of
41:21the momentum candles to be at least
41:23twice the size of the previous candle.
41:24So there's a good sign. And another sign
41:27that we have a liquidity run is that if
41:30we have the candle close, if the candle
41:32closes far above the liquidity level,
41:36that is one sign that we might have a
41:38breakout instead.
41:40Uh another sign is that you know for
41:42example here on the liquidity sweep you
41:45can see that we had a candle close bar
41:47above but we have a pretty high wick
41:50while in this example right here we have
41:52you know a pretty small wick. So there's
41:54another thing to pay attention to if we
41:56uh want to find a liquidity run. We want
41:58the wick to be preferably small. So here
42:02in very simple terms, the sweep here and
42:07the grab give you a reversal trade
42:10opportunity while the liquidity run
42:13tells you the trend is real and it also
42:16give you a breakout trading opportunity.
42:19But right so now let's once again jump
42:21into trading view here. I want to show
42:23you guys examples of liquidity grabs,
42:26liquidity sweeps, and also liquidity
42:29runs. So, first of all, I once again
42:33want to go back here to the all-time
42:34high example of Bitcoin because this is,
42:37you know, such a clear example. So,
42:39here, first of all, you can see that
42:40Bitcoin created a new all-time high
42:43right here. We printed a new all-time
42:45high on July 14th, 2025. And when we
42:50create a new all-time high, that is, of
42:52course, a very important level that many
42:55traders are paying attention to. So, we
42:56can draw out the level right here. And
42:59because this is such an important level,
43:01we will of course have many buy stop
43:05orders above this level. So above this
43:08level, we have tons and tons of buy stop
43:10orders. And what we also have is of
43:13course that when or if the price pushes
43:16above this level, many traders will
43:19think that this is the price is breaking
43:21out. You know, the price is going to the
43:23moon. So this will lead to even more
43:25buying pressure. So when we uh so when
43:27the price as you can see we pushed down
43:29but then the price came back to this
43:31level and hopefully you can see it's a
43:34little bit clustered but we pushed up a
43:36bit here. So we got lots of selling
43:39pressure coming into that level but
43:40apparently
43:42so many traders took advantage of this
43:45buying pressure and the price
43:46immediately reverse to the downside. So
43:49this right here is you know pretty much
43:51a liquidity grab. I would say it's a
43:53liquidity grab because the price, you
43:55know, wicked. You you can see above the
43:58level, we only have a wick and then we
44:00immediately reverse to the downside. If
44:03we then look a little bit more to the
44:06left, you can actually see that this
44:07pattern played out once again here. We
44:10we had a new all-time high. So many
44:13traders that you know shorted the market
44:16right here. They probably have their buy
44:20stop orders above this level right. So
44:23we have a buy stop order right here. You
44:25know you can think about each of this
44:26line as thousands of buy stop orders.
44:29Then the price was you know
44:31consolidating for a while. We went down
44:33once again up and down a bit. But then
44:36Bitcoin made another attempt to try to
44:38break out. And you can see in this case
44:40we actually tried during two candles.
44:44During two candles the price tried to
44:46push above. You can see right here we
44:48wicked above and closed below. Right
44:51here we wicked above and closed below
44:53once again. So the price really tried to
44:55push above and we apparently got lots of
44:58buying pressure. We managed to create
44:59new highs but you know before the candle
45:02closes the sellers took control once
45:04again. So this is once again an example
45:06of where smart money took advantage of
45:09the buying pressure and pushed the price
45:11down. And then in this case we had this
45:14strong red candle that was really the
45:16nail in the coffin. Uh this is what what
45:19is known as a confirmation candle
45:21confirmed uh the selling pressure and uh
45:24the liquidity grab. And because this was
45:28a multiple candle pattern, one could
45:31actually argue that this was more like a
45:34liquidity sweep, right? This this was
45:37more like a liquidity sweep, while this
45:40pattern uh right here was more like a
45:42liquidity grab. But as I mentioned
45:44earlier, the sort of uh difference
45:46between a sweep and a grab is, you know,
45:48not super clear. You might be confused
45:51about this. Maybe you have tried to
45:52learn about the grab and sweep before,
45:54but in general, it's not a big
45:56difference. I would say that the grab is
45:57more quick, the sweep is a little bit
46:00more long. Uh but the the principles of
46:02both patterns are pretty much the same.
46:05But now let's also take a look at a
46:07liquidity run. And here I have a super
46:11clear example. I really like this one
46:12because it's so clear. So if you take a
46:14look at this chart right here, now we're
46:16looking back a bit more on Bitcoin. But
46:18you can see that this was a long sort of
46:20consolidation area and we had you know
46:23resistance coming in not only one time,
46:25two time, three time you can see
46:27multiple multiple times this was a super
46:30clear resistance. So what we can do here
46:33is that we can use our uh you know
46:35rectangle tool because support and
46:38resistance levels are you know in real
46:40markets they are often not lines in real
46:42markets they are acting more as zones.
46:45So, when I draw my support and
46:46resistance levels, I often use this tool
46:49right here in Trading View. And as I
46:51said, I can remind you guys once again
46:53that if you for some reason don't have
46:54Trading View yet, I do have a special
46:57link. You will get Trading View Premium
46:59for free. You will get a $15 bonus. The
47:01link is both in the description and the
47:03pin comment. Make sure to check that one
47:04out. If you for some reason don't have
47:06Trading View yet, but I think if I I
47:08hope you have Trading View at this
47:11point, but we can drag out this level
47:13right here. And remember because we have
47:16so uh because this is such a clear level
47:19you know everyone can see this level
47:20super clearly. It often means two
47:24things. First of all people that have
47:26been going short usually have their
47:29stop-loss orders their buy stop orders
47:32above this level. So we have many buy
47:35stop orders above this level which
47:37remember if the price reaches this this
47:39level it leads to increased buying
47:42pressure. And what we also have is that
47:44we have normal traders that see this
47:47breakout and when it breaks out they
47:49think the price will continue and that
47:50leads to even more buying pressure. And
47:54remember here I had a few signs that is
47:56you know good signs that we actually
47:58have a liquidity run. The first sign we
48:00want to see here is that we want to see
48:03the candle strongly closing above the
48:06resistance. You can see this is the
48:07first time ever the price closed above
48:10this resistance. And what you also can
48:12see that is a very important nuance is
48:14that if you look down to the volume
48:16indicator, you can actually see that we
48:18have lots and lots of volume coming in
48:21on this candle. Seeing lots of volume on
48:24a breakout candle is yet another, you
48:27know, key sign that we're talking about
48:29a real breakout, a strong breakout. So
48:32this right here, we had multiple signs
48:34that this was actually more probably a
48:36liquidity run than a liquidity sweep.
48:39But you of course still need to be uh
48:43you know careful because if maybe after
48:45this candle you can see if we saw you
48:47know selling pressure and a candle
48:49closing below the resistance once again
48:51that is of course a clear sign that you
48:53know maybe this is just yet another you
48:55know slower liquidity sweep. All right
48:59so now it's time to take a look at
49:01external versus internal liquidity and
49:05inducement. And I know guys now the
49:08terms are starting to sound a little bit
49:11more complicated. So I will try my best
49:13to simplify this even more. I will try
49:16to make it as simple as possible. So
49:19first of all, external liquidity. What
49:22is this? Well, you can think about this
49:24as liquidity that bas basically rests
49:28outside the current range. So for
49:30example, we have buy side liquidity
49:33above the major highs and sellside
49:35liquidity, you know, below the major
49:39lows. And to make this even more uh
49:42simple, you can think about external
49:44liquidity as simply the most obvious
49:47levels, the most clear levels you can
49:50see on the chart. So for example, if you
49:53look at this image right here, you can
49:56see that I marked the external liquidity
50:00level with purple. So here we have the
50:03most obvious high on this image and down
50:06here uh let me actually draw this one
50:09out a bit more clearly. You can see down
50:12here we have the most obvious low. So
50:15let me delete my drawing so you can see
50:17more clearly. And what does this mean?
50:20Well, because this is such an obvious
50:22high, it means that we probably have
50:24lots of buyside liquidity, right? Lots
50:27of buyside liquidity above this high.
50:31And below this low, we probably have
50:34lots of sellside liquidity, right? But
50:38the important part to notice about this
50:40is that we also have internal liquidity.
50:43And internal liquidity is basically is
50:45basically the liquidity that sits uh you
50:48can think about it as the liquidity that
50:49sits inside the range. So these are the
50:52minor swing points, the pullbacks, the
50:54highs and lows, the fair value gaps and
50:56so on and so on. And don't worry, I will
50:58talk about fair value gaps later on in
51:00this course. But you can see here for
51:02example below each of these small points
51:05right here we often have you know
51:08traders for example on the smaller time
51:10time frames will also have uh you know
51:13put their stop losses for example below
51:15this point right here. So we might have
51:17some sell liquidity right here. We might
51:19have some sell liquidity right here. Of
51:21course the same thing uh but the
51:22opposite is true on the upside. So we
51:25might might have some buy side liquidity
51:27right here. But the important part to
51:29notice is that these small swings are
51:31usually not as significant. So in
51:34general, what I like you to think is
51:37just to if you really want to find the
51:39most important liquidity spots on the
51:40chart, you want to focus on the most
51:43obvious swing highs and swing lows. The
51:45the the points that really sticks out on
51:48the chart. For example, the points I
51:49showed you guys earlier in the video
51:51when uh earlier in the course when we
51:53took a look at the Bitcoin example. But
51:56now I want to take a look at a specific
52:00example of internal liquidity and this
52:03is what is known as liquidity
52:05inducement. What is liquidity
52:07inducement? Well, liquidity inducement
52:10is when we see a deliberate move against
52:14the trend that sweeps the as I said
52:17internal liquidity to trick traders in
52:21the wrong direction and then continue.
52:23So this is a sort of way to trick
52:25traders in one direction and then push
52:27the price back up. So let me try to
52:29demonstrate this. So let's say that we
52:31have an uptrend like right here. We have
52:33a clear uptrend. But then we might have
52:36let's say that the price goes something
52:38like this. Remember here that we do have
52:42we probably have some internal liquidity
52:45right here. Some internal uh sell side
52:48liquidity. So if the price pushes below
52:50this level, we probably get some
52:53stop-loss orders triggers and some extra
52:55selling pressure and smart money can
52:58actually use that as a sort of force. So
53:01the price goes down here which is some
53:03extra selling pressure below these stop-
53:04losses and then the smart money can use
53:07this liquidity to then once again swing
53:10to a higher high. And as you can see,
53:12this trend is still printing uh you know
53:15external external higher lows. And what
53:19do I mean by this? Well, you can see we
53:21have one low right here. We have one low
53:23right here. And you can see that this
53:24low is still a little bit higher or at
53:27least I tried to draw it that way. A
53:28little bit higher than the previous low.
53:30So this is still an uptrend. This right
53:32here is just an an internal swing point.
53:35And uh because of that, this is an
53:37example of internal liquidity. And a pro
53:41tip here is that internal liquidity, so
53:44the sort of minor liquidity tends to get
53:47taken first before the external.
53:49Remember here the internal liquidity is
53:52easier to take out than uh the more
53:55major and external liquidity.
53:58Okay, so now it's time to take a look at
54:00something called high resistance and low
54:04resistance liquidity. And this right
54:07here can in the beginning once again it
54:09can be a little bit complicated but
54:11don't feel uh don't feel overwhelmed of
54:14what you're seeing on the screen right
54:15here because once again I will try to
54:17really break this down in super simple
54:19terms and the first thing I can mention
54:21is that when we talk about resistance
54:23here we are not talking about talking
54:25about uh support and resistance we are
54:28rather talking about the strength of the
54:31liquidity. So first of all, what is low
54:35resistance liquidity? Well, low
54:37resistance liquidity forms after a
54:40failure swing. So this is when the price
54:42tries to make a new high or low and
54:45fails. So right here we have examples of
54:48low resistance buy side and low
54:50resistance sellside liquidity. So you
54:53can see in the buy example right here,
54:56the price makes a swing high, then it
54:59pulls back, but then it, you know, when
55:01it tries to make a new swing high. So
55:04what the price wants to do is make a new
55:06swing high right here. But you can see
55:07in this case, it actually fails and make
55:10a lower swing high. This is what what is
55:13known as a failure swing. And so this is
55:16a low resistance buyside liquidity. So
55:19the liquidity will sit above this point
55:21right here. But because it is a low
55:24resistance buy liquidity it will be
55:27often at least most of the time it will
55:29be less liquidity and the same thing but
55:32the opposite is true for the sell side
55:33liquidity. So here so here remember the
55:35price goes down print a swing low it it
55:38uh you know pulls pulls back. Now what
55:41the price want to do in order for us to
55:43you know have a downtrend is that it
55:45wants to print a lower low. Right? But
55:48in this case it fails to print a lower
55:50low. So this is what it and it prints a
55:53higher swing low. It fails the swing. So
55:55this is an example of a failure swing.
55:57And below this swing point is where we
56:01have sellside liquidity. And as I said
56:04both of these low uh low resistance uh
56:06both buy side and sellside liquidity
56:08tend to be weaker compared to the other
56:11type uh that we will talk about now. So
56:14now let's take a look at the high
56:16resistance liquidity. What is this?
56:19Well, high resistance liquidity forms
56:21after a clean break or in other words,
56:26it's it's basically like a clean
56:27reversal when we have a you know a
56:29higher high followed followed by a lower
56:33low or vice versa. And I know that this
56:36can sound a little bit complicated but
56:38let me try to show it visually. I think
56:40this is easier. So this is in the case
56:43of the buy side. You can see that the
56:45price prints a swing high. Then it pulls
56:47back. Then it prints yet another higher
56:51high. Right? So in this case we print a
56:52higher high but then we immediately
56:56reverse and print a low a lower low. So
56:58we print both a higher high and a lower
57:00low. And this is very important. You can
57:02see both a higher high. It's higher than
57:04this. But we also print a lower low. So
57:07higher high and lower low. And the
57:09opposite is true for the high resistance
57:12sell side. So in this case the price
57:13goes down print a swing low it pulls
57:16pulls back then we print a lower low but
57:18then it immediately reverses to a you
57:22know higher high. So in this case we
57:25print both one low and then a lower low
57:27and then one high and then a higher
57:28high. And this sort of pattern right
57:31here usually creates stronger buyside or
57:34sellside liquidity. So let me try my
57:38best to demonstrate a sort of more
57:40general picture. So let's say we have an
57:41uptrend. It goes like this, you know,
57:44trading up. In this case, this liquidity
57:46right here is low resistance sellside
57:50liquid liquidity, right? Because we have
57:53because the price failed to take out
57:55this low right here. Right? And right
57:56here we also have low resistance
57:59sellside liquidity. But if you for
58:02example look at this example right here,
58:04here we have one of these cases when we
58:06have you know the price prints a higher
58:08high but then it immediately takes out
58:11the low resistance sellside liquidity
58:12here. So we have a low and then a lower
58:14low. And remember this is the high
58:17resistance buy side liquidity right? So
58:19this is high resistance buyside
58:23liquidity and the key idea here is that
58:26once high resistance liquidity is taken
58:30the price tends to travel toward the low
58:35resistance liquidity. This is what uh
58:37people call the path of less proven uh
58:40defense. This is a more sort of modern
58:43term term. But it is also important that
58:45these are not new concepts. For example,
58:48Livermore uh Livermore called this sw
58:51failure swings pattern out you know more
58:53than 100 years ago. So this is one of
58:56these examples where smart money concept
58:57traders and you know ICT traders are
59:00usually relabeling old concepts. But to
59:03get the idea uh here you know at our
59:06example remember we took out high
59:09resistance buy side liquidity and the uh
59:12the idea is that the price moves towards
59:14towards the uh you know less liquidity
59:17because that is easier that is easier
59:19liquidity to take right. So in this
59:21particular case, we have the low
59:23resistance sellside liquidity much
59:25easier to take out here than the high
59:28resistance buyside liquidity up here.
59:30And now I see a little bit too late that
59:32my uh that my camera was a bit in the
59:35way, but I hope you see the you know
59:37general concept of this image right
59:39here. Guys, don't worry if this doesn't
59:41click immediately. It didn't click for
59:43me immediately either. So you know take
59:45your time and learn at your own pace.
59:48Okay, so now the time has come to take a
59:50look at three important liquidity
59:53concepts. And I'm talking about equal
59:55highs, equal lows, and trend line
59:58liquidity. And first of all, let's begin
1:00:01here by taking a look at equal highs and
1:00:03equal lows. And this concept is very
1:00:06simple. This concept is that multiple
1:00:09swing points that are stack on the same
1:00:12price often creates a deeper liquidity
1:00:16pool. Or in other words, we see more
1:00:18stops or cluster of stops that's that
1:00:22leads to more fuel when we actually
1:00:24reach these levels. So for example, if
1:00:28you take a look at this image right
1:00:30here, you can see a very clear
1:00:32demonstration of an example when we
1:00:34have, you know, multiple multiple highs
1:00:36here coming in at the same level. And if
1:00:40you think about it very simply, remember
1:00:42above highs, that is, you know, by far
1:00:45the most common place to set your stop
1:00:47uh to set your stop loss. So think about
1:00:49it after the first high when we see the
1:00:51the price reverse. Many traders that
1:00:54went short probably set their buy stops
1:00:58above this level. So we already have
1:01:00multiple, you know, stop- losses above
1:01:03this level right here. But then when the
1:01:06price once again goes up and test this
1:01:09level now multiple traders will realize
1:01:12that this is a double bottom pattern. So
1:01:14even more traders will try to trade this
1:01:18pattern and bet that the market will go
1:01:19down. And where is the most common place
1:01:22to set your stop loss for a double top
1:01:25pattern?
1:01:26Well, the most common way is to set your
1:01:28stop loss just above the high. So now we
1:01:31have Oops. Let me still use the red
1:01:34color. Now you can see we have even more
1:01:37stop- losses above this level. And if
1:01:39this continues, so let's say that the
1:01:41price once again goes down and once
1:01:44again comes up and test this level. Now
1:01:47this is starting to look like a very
1:01:49clear resistance level and more and more
1:01:52traders will pay attention to it. More
1:01:54and more traders will trade it as well.
1:01:57So as you can see it stacks up more and
1:02:00more. You can see more and more sort of
1:02:03uh buy stops or in other words buy side
1:02:05liquidity is stacking up above these
1:02:08highs which means that when or if the
1:02:10price eventually pushes above this level
1:02:13the reaction often gets more strong and
1:02:17more violent. So that is what I'm trying
1:02:19to demonstrate with this image right
1:02:21here. when we actually tap into to the
1:02:23liquidity, the for example liquidity
1:02:26grab or liquidity sweep can be much more
1:02:30uh much more significant. And that is
1:02:32why I especially if you are a beginner
1:02:35trader and are just starting to trade
1:02:37liquidity, I highly recommend to start
1:02:39by trading these obvious levels that
1:02:42that you know many traders find and that
1:02:44multiple traders pay attention to
1:02:46because you will you will be able to
1:02:48find so much more clearer movement and
1:02:51you will really you know even be able to
1:02:53sort of feel the liquidity that can lie
1:02:56above these clean levels. Uh so for
1:02:59example, let's just quickly jump back
1:03:02into trading view here and to get a
1:03:04little bit of variation, let's actually
1:03:06move on to the fiveinut time frame and
1:03:09let's see if we can find any obvious
1:03:11levels right here. Uh by the way, the
1:03:13concepts I teach, you know, throughout
1:03:15this whole course, it doesn't really
1:03:17matter what time frame you use. If
1:03:19you're using the daily time frame, if
1:03:21you're swinging trading or day trading,
1:03:22the concepts can be applied on multiple
1:03:25time frames. Uh however it is important
1:03:28to notice that here the the shorter the
1:03:31time frame you use the less likely is
1:03:33that you will uh that you will find the
1:03:35sort of low liquidity environments that
1:03:37can be a little bit harder to trade. Um
1:03:41but let's see see here if we can find
1:03:43any obvious levels. So for example right
1:03:45here super clear example you can see in
1:03:47this case Bitcoin really tried to p push
1:03:50above you know a short-term resistance
1:03:53not only one time two time three time
1:03:55you can see multiple multiple times the
1:03:57price sort of pressed against the
1:04:00resistance right here. Uh so in other
1:04:03words, many traders probably have their
1:04:06stop losses above this level. And you
1:04:09can see that once the price eventually
1:04:12pushed above, you can see lots of buy
1:04:14stops got triggered which pushed the
1:04:16price uh up even higher. Uh but then
1:04:19eventually the price rever reversed.
1:04:21This is a classic liquidity grab perhaps
1:04:24caused by by smart money. And let's see
1:04:27here if we look even more to the left
1:04:29you can actually see that we we had some
1:04:31highs here from we had some historical
1:04:34levels. You can for example see the peak
1:04:35right here the peaks right here. So we
1:04:37can even argue that this was some sort
1:04:39of historical resistance level. So maybe
1:04:43we had you know buy stops orders from
1:04:45all the way back here that contributed
1:04:47to this uh liquidity grab right here.
1:04:50Maybe we have some stop-loss orders from
1:04:51all the way back here that contributed
1:04:53to the liquidity grab right there. and
1:04:56so on and so on. But now the next
1:04:59concept I really need to mention is
1:05:01something known as trend line liquidity.
1:05:04And this is because you know these key
1:05:07levels we have been talking about so far
1:05:09are only horizontal levels. We have been
1:05:11talking about swing highs and swing
1:05:12lows. But many traders use different
1:05:16kinds of tools. For example, trend
1:05:18lines. So we can also have stops that
1:05:21pile up below uh rising trend lines and
1:05:25above falling trend lines because you
1:05:28know many traders actually trade based
1:05:30on the trends and the trend lines rather
1:05:33than you know horizontal levels. So a
1:05:36super simple example is that if we have
1:05:39you know uh let me use this color right
1:05:42here. Let's say that we have a trend
1:05:43line uh we have a trend right here. So
1:05:45the price moves something like this.
1:05:47It's very possible. You can think about
1:05:50it as that it's possible that we have
1:05:51sort of stop-loss clusters that goes,
1:05:54you know, along with this trend line.
1:05:57This is a way of setting dynamic
1:06:00stop-loss levels. And, you know, being
1:06:02able to master how to set your stop-
1:06:05losses and how to set your target levels
1:06:07is a whole topic on its own. Uh but
1:06:10don't worry because I do actually have a
1:06:12full course on risk management where I
1:06:15go over everything you need to set your
1:06:17stop-loss target level and multiple you
1:06:19know advanced and be beginner friendly
1:06:22uh techniques that I think every trader
1:06:24should know. Um I do have a full course
1:06:26about that and I will make sure to link
1:06:28that video up in the video card as well
1:06:30as the description. But here I hope you
1:06:33get the concept. The concept is still
1:06:35the same. So now if the price for
1:06:37example drops below this level remember
1:06:40it's likely that we have multiple stop-
1:06:42losses here. When we drop below many
1:06:44stop-loss orders will get triggered
1:06:46which lead which leads to forced
1:06:49selling. And this is an opportunity for
1:06:51smart money to create a liquidity grab.
1:06:54So we can find this sort of horizontal
1:06:58uh I mean this sort of sloping liquidity
1:07:00grabs as well. So don't underestimate
1:07:02trend lines. Um but however it is
1:07:05important to mention that these are
1:07:07often a bit harder to trade. So for
1:07:10beginners I recommend to focus on
1:07:11horizontal levels. But this is still
1:07:13something that you know is very
1:07:14important to have in mind especially if
1:07:16we have a very clear and easily visible
1:07:20uh trend line on a chart. So a very
1:07:23important lesson here uh the lesson is
1:07:26that any tool that produces a
1:07:28predictable behavior creates more
1:07:32predictable liquidity. So this concept
1:07:34works for for example chart patterns,
1:07:36ballinger bands, moving averages and so
1:07:39on and so on. If we have a tool that
1:07:41creates uh you know predictable stop-
1:07:43losses, we as traders can use that in
1:07:46our advantage to trade the liquidity
1:07:50that these tools produces, right? And I
1:07:53can also mention that you know if you
1:07:54want to learn about chart patterns, it
1:07:56can be super power powerful. I do have a
1:07:58full course about that and I will make
1:08:00sure to link that course up in the video
1:08:02card and the description. Also here, uh,
1:08:04the Ballinger band. Yet another powerful
1:08:07tool that I do have a video about and I
1:08:09will link it up in the video card and
1:08:10the description. If you're new here to
1:08:12the channel, you will notice that I have
1:08:14so much free material here on YouTube.
1:08:16So, I really hope you will, you know,
1:08:18not stop here. Uh, you know, your
1:08:20trading education is just beginning. Uh,
1:08:23but sorry about that tangent. Now, let's
1:08:26continue. One warning sign to pay
1:08:29attention to is that the cleaner the
1:08:32trend line, the more likely it is to get
1:08:35swept before the continuation or the
1:08:37more likely that people will take
1:08:39advantage of the of the uh liquidity
1:08:43below the trend line. But yeah, this
1:08:44doesn't really have to be a warning
1:08:46sign. It could also be an opportunity.
1:08:48You can, for example, trade the
1:08:50liquidity grabs or liquidity sweeps.
1:08:53Okay, so now it's time to take a look at
1:08:55fair value gaps or for short FVG
1:08:59and another concept that is called
1:09:01liquidity voids and we can call it for
1:09:03short LV right here. Uh but let's start
1:09:07here with the fair value gap. This is a
1:09:09very common term uh very common term in
1:09:11trading and it's a good pattern to to
1:09:14know about. You really need to know
1:09:15about this one but it's actually very
1:09:17simple and once again this is one of
1:09:18these concept that I feel like many
1:09:20people are over complicated. It's
1:09:21actually super simple. A fire value gap
1:09:24is just a three candle pattern where the
1:09:26high of candle one and the low of candle
1:09:30three don't overlap. And this leaves a
1:09:33sort of price gap that wasn't fully
1:09:36traded through. But this is a little bit
1:09:38oversimplified because in some cases we
1:09:40can actually have lots of volume in a
1:09:42fair value gap. But to demonstrate this,
1:09:45let's super quickly take a look at this
1:09:47image right here. So remember what I
1:09:50said a a fire value gap is simply when
1:09:53we have the high of the first candle. So
1:09:56the high right here. I hope you can see
1:09:59the high right there is lower than the
1:10:02low of the third candle. So this is
1:10:04candle one. Up here is candle three. And
1:10:06we have the low of candle three and we
1:10:09have the high of candle one. And the gap
1:10:11here in between is simply the fair value
1:10:14gap. And the theory here is that many
1:10:18times the price will actually go down
1:10:21some sometime in the future to test this
1:10:23gap right here. And if we get a price
1:10:26action signal, let's say we get a
1:10:27bullish engulfing pattern, uh this can
1:10:29often lead to a bounce towards the
1:10:30upside. Uh however, you will notice the
1:10:33more you look at fire value gaps, the
1:10:34more you will notice the problems about
1:10:36the fire value gaps. Uh they can
1:10:38definitely be useful, but I think that
1:10:40many traders are overhyping them. um
1:10:44some gaps that can can actually be more
1:10:46significant is what we sort of refer to
1:10:50as a normal gap. Uh but first of all I
1:10:53want to talk about the concept of
1:10:55liquidity void or for short LV. And this
1:10:58is yet another term that is not in my
1:11:00opinion it's not very greatly defined.
1:11:03From my learnings, a liquidity void is
1:11:06more of an umbrella terms for basically
1:11:09any area where price move fast with
1:11:12little resistance. So that is the so
1:11:14that is the you know concept behind a
1:11:16fair value gap. You know in this area
1:11:18the price have moved you know only once
1:11:22and only fast u and that is you know the
1:11:25sort of theory behind the the fair value
1:11:26gap but we have many different kinds of
1:11:29liquidity voids. So to be very clear,
1:11:32liquidity voids or for short LV is a an
1:11:35umbrella term. So fair value gap is a
1:11:39type of liquidity void. Uh oh, this is
1:11:42super ugly. But here a fair value gap is
1:11:44a type of liquidity void. But we have
1:11:47other types of uh liquidity voids as
1:11:50well. And one classic type is what we
1:11:53what we call a normal price gap or just
1:11:57gap. So here if you look up in the upper
1:12:00right quarter we have an example of a
1:12:02liquidity void created from a gap. And a
1:12:06gap like we have right here is simply
1:12:08when we had no trading at all happening
1:12:12between uh you know the high of one
1:12:15candle. So we have candle one right here
1:12:19and we have candle two right here. And
1:12:21you can see that there are no trading
1:12:23activity in this whole zone. So you can
1:12:26think about this as a strong version of
1:12:29a fair value gap. This type of gap is
1:12:32much more rare compared to the file
1:12:34value gap and it pretty much only
1:12:35appears in markets when we we don't have
1:12:38any trading overnight. And you might
1:12:40wonder why do gaps appear? Well, things
1:12:44can happen during, you know, uh
1:12:46non-trading hours. For example, let's
1:12:49say that during the weekend, as I'm
1:12:51recording this video, there's lots of,
1:12:52you know, uh the the U the US and Iran
1:12:56is pretty much in war and we have lots
1:12:58of news coming out over the weekend. So,
1:13:00let's say we have, you know, negative
1:13:02news that, you know, maybe oil prices
1:13:04are spiking and so on over the weekend.
1:13:07This can lead to the stock market
1:13:09prices, you know, gapping down. So, we
1:13:12might have a gap down or if we have
1:13:13positive news, we might have a gap up.
1:13:16But these kind of gaps doesn't really
1:13:17happen in markets that are trading 24/7
1:13:20like for example Bitcoin. So in these
1:13:22kinds of markets fair value gaps makes
1:13:25more sense. And here as I said the
1:13:28theory here is that price often returns
1:13:30to this area. So as you can see the
1:13:32market often retrades the gap before
1:13:35continuing. And fair value gaps are a
1:13:38clean sort of reaction zone. You can
1:13:40think about it a little bit as a support
1:13:41and resistance zone where we actually
1:13:43look out to take trades but they are
1:13:46more significant when they align with
1:13:48other things like as I said market
1:13:51structure and we also want um you know
1:13:53some price action signal before we
1:13:55commit to the trade. One more note here
1:13:59I also want to mention about the
1:14:01standard gap is that as I already
1:14:04mentioned it's a stronger form of gap
1:14:06where the price physically jumps. Um but
1:14:09as I said it's common in stocks at
1:14:12market open especially after a weekend
1:14:14but it's very rare in 247 markets.
1:14:19And now guys I just want to jump back
1:14:20here to trading view because I want to
1:14:23show you guys the principle here that
1:14:24gaps as you can see Bitcoin is a market
1:14:26that trades 24/7. So no matter where you
1:14:30look here you won't really find these
1:14:32sort of really gaps where we have no
1:14:35trading at all. To find a gap like that,
1:14:37we need to go to a stock. So let's for
1:14:39example go to uh Nvidia. And as you can
1:14:42see on the Nvidia chart, you will find
1:14:44multiple of these places when we have
1:14:46gaps. Let's see if I can notice a really
1:14:48clear one. So as you can see right here,
1:14:50for example, right here, you can see
1:14:52that here we have a massive gap, right?
1:14:56We have a massive gap between the low of
1:14:59this day and the high of the next day.
1:15:02So this is a clear example of a gap and
1:15:05you can see in this example the price
1:15:07actually went up. This is what is known
1:15:09as filling the gap. When the price goes
1:15:11down goes up to the to the high point of
1:15:14the gap. It sort of fills in the gap. So
1:15:16the gap is filled in and then it
1:15:18actually uh dropped to the downside. So
1:15:21this right here is an example of a of a
1:15:23normal gap. But let's go back to Bitcoin
1:15:25here and see if we can find any uh sort
1:15:27of clear fair value gap. Well, for
1:15:30example, right here, if you look at this
1:15:32pattern right here, if this right here
1:15:34is candle one, this right here is candle
1:15:37two, and the green candle here is candle
1:15:40three, you can hopefully see that, you
1:15:42know, we have a gap here between the uh
1:15:45in this case, a bearish fire value gap
1:15:47is the opposite of the bullish. So, we
1:15:49want a gap between the low lowest point
1:15:52of candle one and the highest point of
1:15:54candle 3. So, this right here is the
1:15:57fire value gap. And if we drag it out,
1:16:00let's draw a zone right here. The theory
1:16:02goes that the price want to come back to
1:16:05this gap and test it. And you can see
1:16:07that in this case, it was actually true.
1:16:10Uh you can see the price eventually came
1:16:12down to it came up to this gap once
1:16:14again and this fair value gap and then
1:16:16and then pumped to the downside. But as
1:16:18I said, if you look closely, I chose
1:16:20this example just because it's a very
1:16:22very clear example. But if you look
1:16:23closely, you will find these fair value
1:16:25gaps all the time. And that is why it's
1:16:27so important to combine it with price
1:16:29action and market structure. But all
1:16:32right, so now it's time to take a look
1:16:35at something known as order flow and
1:16:38order flow tools. And the best way to
1:16:42think about orderflow in my opinion is
1:16:45that they show you uh as you can see
1:16:47these tools show you the history of
1:16:51liquidity. So where have things gotten
1:16:54traded over time? This can give us very
1:16:58important clues to understand where
1:16:59things have got traded over time. We can
1:17:02get very important clues of where things
1:17:04will get traded in the future and as a
1:17:07result hopefully make more money. So
1:17:10let's just quickly go over three uh
1:17:13orderflow tools. And I want to start by
1:17:15looking at the volume profile. And the
1:17:18volume profile basically shows how much
1:17:21volume that got traded at each price
1:17:24level. And here high volume nodes are uh
1:17:28liquidity pools or you should not really
1:17:30think about them. That that is actually
1:17:32not really correct. So I actually
1:17:34miswrote a little bit here. It's not
1:17:36good to think about them as liquidity
1:17:38pools. It's more accurate to think about
1:17:40it as you know the volume traded in the
1:17:43past. You can think about it about it as
1:17:45historical liquidity. Uh so remember
1:17:48here these tools are showing the history
1:17:50of liquidity. So for example if we look
1:17:53at this chart right here you can see an
1:17:55example of the volume profile. Uh a
1:17:58volume profile we usually have on the
1:18:00side of the chart like right here. And
1:18:02when we have sort of peaks like we have
1:18:04right here. This means that lots of
1:18:07volume was traded at that level in the
1:18:10past. And this is the high volume uh
1:18:12volume nodes. So you can think about
1:18:14them as historical liquidity pools. I
1:18:17think that is a you know good way to
1:18:18think about them even though it's not
1:18:20100% correct but it's a solid way to
1:18:23relate them to liquidity. Um and you
1:18:25know for example right here is another
1:18:27example of a high volume node. And also
1:18:30these areas where we have much less
1:18:32historical uh trading is known as low
1:18:36volume nodes. And these are areas on the
1:18:38chart where you know not a lot of volume
1:18:41got traded. And the principle here is
1:18:43that many times the price have an easier
1:18:45time to move in these low volume areas
1:18:51compared to the high volume areas
1:18:53because even though this is historical
1:18:56uh historical volume the history often
1:18:58reveals something about the future. So
1:19:00volume profile is very solid. And here
1:19:04let's jump back to trading view real
1:19:06quick. I just want to show you guys how
1:19:07you can find the volume profile. So you
1:19:08want to go to the indicators tab right
1:19:11here and then you simply search for if
1:19:13you just search for volume profile. Uh
1:19:16you can see that we have all of these
1:19:17under technicals are indicators that are
1:19:20built by trading view. You also have
1:19:22multiple indicators that are built by
1:19:24the trading view community. So they are
1:19:25different specialized indicators. That's
1:19:28one thing I really like about trading
1:19:30view that we have so many traders
1:19:31creating indicators for each other and
1:19:33so on and so on. But for this example,
1:19:35let's let's use a built-in one. And I
1:19:37I'm going to choose the fixed range
1:19:39volume profile. Uh when we use the fixed
1:19:41range volume profile, we can actually
1:19:43choose uh you know a price range. So we
1:19:45can for example, if we click one time
1:19:47right here and then drag it down to
1:19:49right here. So here you can see that we
1:19:51actually get an indication of how much
1:19:53volume that got traded on different
1:19:56price levels. So for example, you can
1:19:58see that many times we will have the
1:20:00highest volume uh traded areas here. uh
1:20:03this is the point of control or P they
1:20:06will often be in areas where the price
1:20:08have have been trading a lot because
1:20:11because of this the price have been able
1:20:13to build up you know volume over time.
1:20:16The next order flow tool I want to take
1:20:18a look at is the footprint chart and the
1:20:22footprint chart basically shows you uh
1:20:24the buying and selling uh uh aggression
1:20:28that happened inside the candlesticks.
1:20:31So, I like to see uh volume footprint
1:20:33charts basically as having an X-ray to
1:20:36be able to look at what happens inside
1:20:40the candles themselves. So, here in
1:20:42Trading View to enable the volume
1:20:44footprint, you want to go up here to
1:20:46where it says candles. So, here you can
1:20:47change the candle type and you want to
1:20:49go down here to where it says volume
1:20:51footprint. Um, and now when we zoom in,
1:20:54you can see that we can actually see
1:20:55what happened inside the candlestick.
1:20:57you know exactly how much volume was was
1:21:00traded during the specific candles and
1:21:03this can look super complicated and I
1:21:06also want to mention that I do think
1:21:07that the volume footprint chart is a
1:21:09premium feature on trading view but as I
1:21:11said don't worry because I do have a
1:21:13special trading view link that you can
1:21:14use to try Trading View Premium for free
1:21:16for 30 days and get a $15 bonus. So if
1:21:20you want to try out the volume footprint
1:21:21chart, make sure to use that link down
1:21:23below. And what I also want to say is
1:21:25that I do have a full course where I
1:21:27teach you how to use all these order
1:21:30flow indicators step by step. And I will
1:21:32make sure to link that video course up
1:21:34in the video card as well as the
1:21:36description. Okay, so last but not
1:21:39least, I can also talk about the VVAP
1:21:41which stands for the volume weighted
1:21:43average price. And this is basically
1:21:45what it sounds like. It is the day
1:21:48center of mass. you know where was the
1:21:51most liquidity taken during the day and
1:21:55we have different types of VWAP. One
1:21:57very common one is the anchored V VWAP
1:21:59that lets you anchor it to any major
1:22:02event for you know dynamic support and
1:22:04resistance and so on and so on. There
1:22:06are multiple different way ways to use
1:22:08the VWAP and it's a little bit outside
1:22:09the scope of this video but I felt like
1:22:11I wanted to at least mention it but once
1:22:14again and this is important to repeat
1:22:16these tools show the history of
1:22:19liquidity and the next slide in the next
1:22:22slide I will actually show you the
1:22:23persistence of liquidity. All right. So,
1:22:27now it's time to take a look at the
1:22:29liquidity heat map. And this right here
1:22:33might look so so, you know, confusing in
1:22:35the beginning. You know, what are you
1:22:37even looking at? This looks like a mess
1:22:39of a chart. Uh, but don't worry. As
1:22:41always, I will try my very best to break
1:22:43this down in super super simple terms.
1:22:45First of all, what is a liquidity heat
1:22:47map? Well, this is basically showing
1:22:50where the buy limit and sell limit
1:22:54orders are resting on the chart. So, I
1:22:58hope you can see right here. Uh, if you
1:23:00look at the image, you can see here to
1:23:02uh, by the way, I think this chart is a
1:23:03gold chart right here. Uh, but if you
1:23:05look to the left, you can see all of
1:23:07this red right here are sell limit
1:23:10orders. So, these are the price levels
1:23:11and where pe people are currently having
1:23:14their sell orders. Then the green side
1:23:17here are the current buy limit orders.
1:23:20So this is at which levels the people
1:23:24want to buy. And what this map basically
1:23:27show you is they don't only show you
1:23:29here the green and the red how many
1:23:31orders but they also show the history of
1:23:33orders. So they show you how these limit
1:23:36orders have looked like over time.
1:23:39Right? So this is very important. So in
1:23:41other words, the liquidity heat map
1:23:44shows where limit orders stayed long
1:23:47enough to matter. So they tell you, you
1:23:50know, where are the important limit
1:23:52orders that stayed for a long time on
1:23:54the chart and where are the places where
1:23:56you know maybe a limit order appeared
1:23:58just just quickly and then got move
1:24:00moved away. That is a common uh you know
1:24:02uh manipulation technique and so on and
1:24:04so on. So, it's very important that this
1:24:07filters out manipulation and things like
1:24:10spoofing and fake orders that get
1:24:13cancelled and leave only the levels with
1:24:16real intent.
1:24:18But now, how do we read this chart?
1:24:20Well, in general terms, uh they can look
1:24:23a little bit different, but the more
1:24:24sort of bright the zones are, the more
1:24:28significant the and the more limit
1:24:31orders we have on the charts. And the
1:24:33darker zones are are basically areas of
1:24:36no real interest. So I hope you can see
1:24:38up here you have the scale and in this
1:24:41chart basically the more yellow it is
1:24:44the more limit orders we have and the
1:24:46more dark it is the less limit orders we
1:24:48have. So you can for example see right
1:24:51here is a super super interesting
1:24:53example. If you take a look at this part
1:24:54right here, you can see that we had lots
1:24:57and lots of limit orders and the price
1:24:59actually even went down and tested this
1:25:01level multiple times, you know, failed
1:25:03to break through. But then you can see
1:25:05that the price finally actually ate up
1:25:08the limit orders. You can see the the
1:25:10price broke the limit orders and after
1:25:12that you can see that no limit orders
1:25:15are left. And this is not because you
1:25:17know people took away their limit
1:25:19orders. In this case, it looks like the
1:25:21price actually ate through the limit
1:25:23orders. And this is us usually, you
1:25:25know, a strong sell signals. So, the
1:25:27price ate up the limit orders and fell.
1:25:29And then you can see what super
1:25:31interesting happened here. You can see
1:25:33that for a brief time, we had a lot of
1:25:35sell limit orders right here. You can
1:25:37see the yellow area right here. But then
1:25:40the price managed to eat up this part uh
1:25:42uh part again and that led to a strong
1:25:45move to the upside. So it's this chart
1:25:48type is super super interesting to
1:25:50study. Um and I will not have too much
1:25:53time. We will go a little bit deeper but
1:25:55I will not have too much time to talk
1:25:57about it you know in this course. So
1:25:59definitely guys let me know down in the
1:26:00comments if you want maybe a full course
1:26:02on diving much deeper into these kind of
1:26:04charts and liquidity. Uh make sure to
1:26:06let me know. But here a simple rule is
1:26:09that when the price hits a bright zone
1:26:12and stalls, we usually say that
1:26:14absorption is winning. So for example,
1:26:16when the price stalled here multiple
1:26:18times and bounced, we say that
1:26:20absorption is winning. And you can think
1:26:22about absorption as the sort of defense.
1:26:24In this case, the buyers managed to sort
1:26:27of defend this level, right? It managed
1:26:30to defend it with sort of buying
1:26:32pressure. Uh but when the price zooms
1:26:34through a bright zone and breaks it like
1:26:37we saw for example right here that means
1:26:40that aggression is is winning. The
1:26:42people that are eating from the order
1:26:44book and taking liquidity manage to
1:26:46overcome that defense. Okay. So now I
1:26:50want to take a look at some specific
1:26:52heat map patterns that you need to know
1:26:55about. And I'm talking about things like
1:26:57walls, clouds, withdrawals, flips, and
1:27:01so on and so on. And let's begin here
1:27:04with the liquidity wall. A liquidity
1:27:07wall is a single price level with
1:27:10persistent resting liquidity. So these
1:27:13are basically the strong and bright
1:27:16lines on the chart. So for example, this
1:27:18right here is a liquidity wall. You can
1:27:21see this yellow one all the way here is
1:27:24a liquidity wall. Down here we have a
1:27:26liquidity wall and so on and so on. Very
1:27:29simple concept. This is where we have
1:27:30been having lots of limit orders in the
1:27:32past. And if you want to measure these
1:27:34limit orders, you can even look here to
1:27:36the right here and see the total uh
1:27:38resting liquidity. Next up, we have the
1:27:41stacked walls or in other words, the
1:27:43liquidity clouds. And this is basically
1:27:45when we have multiple levels of uh
1:27:48resting liquidity or in other words, we
1:27:50usually have multiple liquidity walls.
1:27:53And the thicker the cloud, the stronger
1:27:55the the sort of absorption zone or
1:27:58defense zone. So for example, one
1:28:01example of a cloud looking structure is
1:28:03right here. You can see this one is not
1:28:05as bright as the uh as the liquidity
1:28:09walls. But you can still see see that we
1:28:12have, you know, one, two, three, four,
1:28:14almost five levels stacked uh upon each
1:28:17other. And of course, this one would
1:28:19have been even stronger if we had, you
1:28:21know, if this cloud was yellow. But this
1:28:24is still a cloud in my opinion. Right
1:28:26here, you can see that we have some sort
1:28:28of massive cloud, right? Much of buyers.
1:28:30And you can probably find some other
1:28:32small clouds on this chart. The next
1:28:35concept I want to talk about here is
1:28:36liquidity withdrawal. And this is a very
1:28:40important concept to understand. This is
1:28:41when the wall disappears. And this means
1:28:44that the path of at least resistance
1:28:47opens and the price can often run
1:28:49through that level fast. So let's see if
1:28:51we can find any liquidity withdrawal. So
1:28:53remember this right here. Remember when
1:28:56the price broke through and ate up this
1:28:59liquidity wall right here. This is not
1:29:02really a liquidity withdrawal because
1:29:04this is a scenario when the price
1:29:06actually ate up the liquidity. The
1:29:09liquidity withdrawal is when we see the
1:29:11liquidity just you know disappearing. So
1:29:14for example, a liquidity ball is
1:29:15actually up here. If you look at this
1:29:18part right here, you can see that we
1:29:19have, you know, lots of persistent
1:29:21liquidity. We have lots of sell limit
1:29:24orders resting right here. But then you
1:29:26can see that suddenly at this point
1:29:29right here, the sell orders just
1:29:32disappeared and we have a sort of gap
1:29:34right here between this point and this
1:29:36point. This is a liquidity withdrawal.
1:29:39And what you can notice is that after
1:29:41this withdrawal right here, if we look
1:29:43down, you can actually see that this was
1:29:46when the price uh dropped down. Maybe
1:29:50this was just a coincidence. Who knows?
1:29:52Coincidence? I think not. Uh maybe it
1:29:54was just a coincidence or maybe the
1:29:57people that had the sell limit orders up
1:30:00there maybe started to, you know, sell
1:30:02at market levels. That is one possible
1:30:04solution. I'm not saying that it's
1:30:06either or the other, but definitely
1:30:08something to pay attention to. And
1:30:10knowing about liquidity withdrawal is
1:30:12definitely important. The next thing I
1:30:15want to talk about is liquidity flip.
1:30:18And this is when a liquidity wall gets
1:30:20broken, but that the price still reacts
1:30:23to that level later. So this is
1:30:24basically if you know about support and
1:30:26resistance, you know that when we break
1:30:29uh support, it often flips to become
1:30:31resistance in the future. This is pretty
1:30:33much the same thing but with uh
1:30:36liquidity walls. So for example in this
1:30:38case you know we broke the previous uh
1:30:40liquidity wall right here. So the theory
1:30:43is that this one might flip to sort of
1:30:45act as resistance here in the future.
1:30:47And in this case it you know yes we got
1:30:50a small reaction right here but it
1:30:51wasn't that significant. Uh so in this
1:30:54case it didn't play play out very good
1:30:56but this is a concept that you know can
1:30:58that you can spot many times in the
1:31:00market and it's good to know about. In
1:31:02this case it didn't play out super well
1:31:04uh but definitely a concept as I said to
1:31:07know about. But right so this course is
1:31:10actually coming to an end soon. I do
1:31:12have more things I want to talk about
1:31:14when it comes to liquidity. This concept
1:31:16goes even deeper. Uh but yeah this
1:31:18course is getting so long I really need
1:31:20to to wrap up here. But yeah, guys, if
1:31:22you made it all the way till the end,
1:31:24you know, thank you for being with me
1:31:26today. If you want to, you know, you can
1:31:28just comment down below. Uh leave a
1:31:30comment and say full course to just show
1:31:33that you made it all the way to the end.
1:31:35And also guys, if you want to uh help
1:31:36out the channel, the simple free way you
1:31:39can do is just you already know it, you
1:31:41know, like the video, subscribe to the
1:31:43channel if you want maybe part two of
1:31:44this course and uh other trading courses
1:31:47as well. I have so much I have so much
1:31:50content here on the channel that you can
1:31:52uh learn completely for free. Um I can
1:31:55also just mention that if you want to
1:31:56get access to this full presentation and
1:31:59lots of other things I for example have
1:32:01some trading trading view indicators I
1:32:03have built myself. I have some trading
1:32:04tools uh and if you want to get access
1:32:06to them and at the same time support the
1:32:09channel you can consider becoming a
1:32:11channel member by clicking join down
1:32:14below there. We also have a video where
1:32:15I go over a little bit about what's
1:32:17included in the different tiers. Uh but
1:32:21yeah, I think that is pretty much it.
1:32:23And some recommended future learning
1:32:26here is to check out my smart money
1:32:27concepts course. It just recently passed
1:32:30I think 1 million view uh views. Uh so
1:32:33that is just amazing. Smart money
1:32:35concepts is as you know u you know
1:32:37liquidity I would say is a part of smart
1:32:40money concepts but we have many other
1:32:42concepts as well. And most importantly
1:32:44guys, you need to check out my risk
1:32:46management course. I just recently put
1:32:49out a course more than one hour on risk
1:32:51management. If you only watch one more
1:32:53course, I recommend to watch that one.
1:32:55But yeah, guys, as I said, if you want
1:32:57to take your trading to the next level
1:32:59and start making money, I highly highly
1:33:01recommend to check out my risk
1:33:03management course next. Uh it will be on
1:33:06the screen right here. So simply click
1:33:08and tap on it and make sure to save it
1:33:10and then watch it when you are

About this transcript

This page contains the full transcript of MASTER Liquidity Concepts in 93 Minutes (Full Trading Course) by Mind Math Money, generated from the public captions YouTube serves with the video. The transcript has 16,482 words across 2,210 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.