YT YouTube2Text

YouTube2Text → Transcripts → Master Liquidity Concepts (Mechanical Strategy)

Master Liquidity Concepts (Mechanical Strategy) — Transcript

by Matt Donlevey - Photon Trading · 5,495 words · 758 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00if you can Master liquidity Concepts you
0:02will drastically boost your win rate
0:04find big riskable trades and Bank
0:06consistent profits in this video I will
0:08share a few critical points about
0:10liquidity that most YouTube videos Miss
0:12they just draw liquidity all over their
0:13charts and they say you know this is why
0:15price went Here There and Everywhere and
0:17it's just super discretionary and pretty
0:19useless they don't give you a repeatable
0:21and systematic process that you need to
0:23use in your trading they draw all of
0:25these fancy liquidity schematics but on
0:27their own let's be honest do they
0:29actually help you make money no
0:31consistent actions equals consistent
0:34results you are just pissing in the wind
0:36until you have a repeatable process to
0:38rely on so I'm going to strip away all
0:39of the noise and show you what actually
0:41matters in this video we will cover the
0:43critical rules that have now helped
0:45countless of our members get funded and
0:47Bank their first ever profit splits by
0:49using the power of mechanical strategies
0:51so this video is going to explain my
0:52overall trading strategy what is
0:54liquidity how to mechanically identify
0:57liquidity pools how to spot
0:58institutional training acity liquidity
1:01inducement how to trade high probability
1:03liquidity zones how to avoid liquidity
1:05traps so you can start taking advantage
1:07of them instead and how to enter and
1:09exit from Maximum profit high and low
1:12resistance liquidity and the advanced
1:14liquidity cycle so before we dive into
1:16the specifics of the liquidity Concepts
1:19first you need to understand my overall
1:20strategy philosophy so my entire
1:22technical strategy is based around the
1:24idea of trying to identify where the big
1:27money is entering and exiting the market
1:29and then trying to trade in line with
1:30that so first I use Market structure and
1:33that gives me my directional bias once I
1:35know the direction I want to trade in I
1:37then use supply and demand zones to help
1:38me locate where I'm going to enter that
1:40trade idea and then finally I use
1:42liquidity to help me time and refine
1:44that idea so I essentially use three
1:46main time frames my higher time frame my
1:48medium time frame and my lower time
1:50frame with my higher time frame I just
1:52want to know are we currently in the pr
1:54Trend run phase or are we in the higher
1:56time frame pullback phase okay that's it
1:59step two my medium time frame I want to
2:01know where is my immediate directional
2:03bias so if my M15 chart is bearish that
2:07is the direction I want to trade in for
2:09the session and also that is the time
2:11frame I use for my zones for my pois
2:14okay so my medium time frame gives me me
2:16gives me my immediate directional bias
2:19and the zones are where I need to trade
2:20from Once I have my directional bias so
2:23I.E the higher time frame pull back is
2:25complete my median time frame has now
2:27shifted bullish therefore the higher
2:29time frame pull back is now finished so
2:31now I want to follow the bullish medium
2:33time frame until it takes out the high
2:35time frame week high okay now if you
2:38want to understand how I fully use
2:40Market structure supply and demand and
2:41my entire strategy building it from the
2:43ground up click the link in the bio and
2:45we have a full free training video
2:47series for you where we cover everything
2:48from end to end including how to build a
2:50trade plan back testing Market phases
2:53all of the advanced stuff sign up in
2:54there it's completely free and you'll
2:56take a ton of value from it so once
2:58you've identified your directional bias
3:00so the M15 is now bullish we want to be
3:02looking for catching that higher low to
3:04now Target the continued bullish move
3:06all the way up to that higher time frame
3:07High okay we have our supply and demand
3:09zones and now we use our liquidity
3:12Concepts to refine those zones and to
3:14know what requirements we need to see
3:16when price gets there to increase our
3:18strike rate to increase our risk reward
3:20so that's what we're going to cover in
3:21this lesson today so what actually is
3:24liquidity well in its most simple terms
3:26liquidity is just how much supply and
3:28demand there is in a market at every
3:30price level on the left here we have a
3:32very liquid market so you can see that
3:33every single price level there is a lot
3:35of volume on both sides of the market
3:38whereas in an IL liquid Market there
3:40isn't right there's a lot less volume at
3:42each price level some price levels there
3:44might not be any volume right now in
3:46trading every time you take a trade
3:48there must be an equal and opposite
3:50order for you to transact with otherwise
3:52a trade can't take place so if you're
3:55trading an IL liquid market and imagine
3:57you're a big guy right I mean these are
3:58madeup numbers but imagine you're
3:59putting a lot of volume through the
4:01market and you want to buy $700,000
4:04worth of whatever the asset this is but
4:06there's only $500,000 at the current ask
4:09price if you buy that price is going to
4:12have to shoot all the way up to this
4:13price level to completely fill your
4:15order right so in an IL liquid Market
4:18the market is going to move a lot
4:19quicker and that means that if you're a
4:21big guy and you're getting involved
4:22you're going to get a lot of slippage
4:24because your order is not going to get
4:25filled up all the way up here when
4:27you're trying to buy down here at the
4:28current market price PR so before we're
4:30about to dive into kind of these fancy
4:32technical liquidity Concepts get your
4:34head around this the big guys need a ton
4:37of opposing liquidity for them to trade
4:39against in order to reduce the amount of
4:41slippage they will get in the market
4:43okay so this is a massive clue of now
4:45what we need to try and identify on our
4:46charts to look for where are these big
4:49liquidity pools going to be so if you
4:51look at any Candlestick chart right at
4:53every single price level here there's
4:55going to be a ton of supply and demand
4:57on either side of the market Okay so how
4:59do we now refine that to identify where
5:01the big pools of liquidity are going to
5:03be where institutions can potentially be
5:05looking to trade against that so we want
5:07to identify the areas on our price
5:09charts where we think there is going to
5:11be large pools of resting available
5:13liquidity for institutions to use okay
5:17so we assume that there is liquidity
5:18behind every structural high and low in
5:20the market now that can come come in
5:22many forms as it's shown on the chart
5:24here but essentially the more
5:26significant that higher low we can
5:27assume the more available liquidity
5:30there will be behind it now there's a
5:33lot of sort of discretionary ways that
5:34this can appear you got trend lines
5:35equal highs and lows you can have you
5:37know session range liquidity say with
5:39the Asian session range previous day
5:41highs and lows right there's lots of
5:42different ways that Traders like to use
5:44and that's why we you'll seeing other
5:45YouTube videos Traders will just draw
5:47liquidity everywhere now whilst that
5:49might be factually true how does it help
5:52you with your trading right you want to
5:53make it as systematic refined and
5:55mechanical as possible so what I would
5:57advise to you when you're starting out
5:58is just focus on something like the
6:00Strong high and low concept because this
6:02is extremely mechanical and simple to
6:04identify now Behind These highs we
6:07assume that there is buy side liquidity
6:09and Below these lows we assume there is
6:11sell-side liquidity okay now why do we
6:14get these liquidity pools forming Behind
6:16These structural points in the market
6:18well that's where the concept of
6:19inducement comes in so inducement is a
6:21thing that persuades or leads someone to
6:24do something so in trading what that
6:26essentially means is that patterns in
6:28the market will encourage enourage
6:30Market participants to trade at certain
6:32levels and what that does is it
6:34generates available liquidity for the
6:36big guys to use to fill their positions
6:39okay so for instance imagine you get
6:41equal lows in the market these double
6:42bottoms what does that form it forms a
6:44support level that Traders might want to
6:46trade so if they're buying at that
6:48support level where they're going to
6:49place their stop loss they're going to
6:51place it below the lows okay so that
6:52generates sells side liquidity likewise
6:55people might view that double bottom
6:56actually as a bare flag and they want to
6:58sell the Breakout of that right so more
7:00sell-side liquidity generated below
7:02those lows or for instance you get a low
7:05that breaks a high Traders now see the
7:07trend as going to the upside so they now
7:09want to buy Here hoping that that
7:10bullish Trend will continue so if they
7:12buy there where is a stop loss going to
7:13be it's going to be below the low and
7:15that generates sell-side liquidity you
7:17then get the opposite for those bearish
7:19patterns right generating buy side
7:21liquidity above the high so again what
7:23are we doing here the institutions need
7:26opposing liquidity to fill their orders
7:28so if you look look for these patterns
7:30to appear in areas in your chart where
7:32you're expecting a certain direction to
7:34play out I.E if you identify a high
7:38probability Supply Zone and you start to
7:40see those structural highs form in front
7:42of it then we know there is buy side
7:44liquidity right for the big guys to sell
7:47against right they need that opposing
7:49liquidity to enter the market short with
7:52minimal slippage so the key here is
7:54identifying inducement that generates
7:57the available liquidity for instance
7:59ustion to use in front of a POI right
8:02can increase the probability of it
8:03holding and for Price playing out in
8:05that direction that you're anticipating
8:07so this is a powerful concept when you
8:09understand it but on its own it's pretty
8:11useless like anything in trading you
8:13need to combine it with all of your
8:15other Confluence to build a portfolio of
8:17evidence to take a high probability
8:19trade so now we understand what
8:21liquidity is where we can find it on our
8:23charts why institutions need it but now
8:26how can we use all of that to actually
8:28make money if I can simplify it for you
8:30there's two main ways we use liquidity
8:32one is in the past okay so we look for
8:35where sweeps have already occurred to
8:37signal that institutional activity may
8:39have happened there and then we use it
8:41for the Future Okay so identifying where
8:43is the available liquidity to anticipate
8:45if they're going to enter in those same
8:47places in the future so the first part
8:49is where have they previously entered
8:51and that's where the concept of
8:52liquidity sweep zones come into play
8:55okay so if you find a supply and demand
8:57Zone that to liquidity in the creation
9:00of the zone that can signal that there
9:02was institutional backing in that zone
9:04okay why what is the logic and theory
9:06behind this well if we assume that there
9:09is buy side liquidity behind a high that
9:12means that institutions can use that to
9:14sell against right to fill their orders
9:17with minimal slippage in the creation of
9:19this Zone okay so there different ways
9:20in which this uh in which this can form
9:23but if we see that zone that took a low
9:26right in the creation of that demand
9:27Zone that is potentially where being
9:29firers have used the sell side liquidity
9:31to enter to get in long okay so now you
9:33can use this as a filter to look for
9:35higher probable zones within your
9:37trading now we know that in a bullish
9:39Market lows are strong because they
9:42create those highs they break structure
9:44to the upside now what you will often
9:46notice is that those strong lows in a
9:48bullish Market are created through
9:50sweeps of liquidity why because
9:53institutions need the sell side
9:55liquidity below those lows in order to
9:57fill their long positions to to fuel
10:00that next prot Trend run to the upside
10:02okay so if you look here you can see
10:03that every time a swing pullback is
10:05complete it happens through a strong
10:07liquidation right we take that liquidity
10:09in the leg to the left we even get a low
10:12here that breaks the high okay
10:13generating strong available liquidity
10:15below that low the big guys can then use
10:17that to get long and fuel that Next
10:19Movement to the upside okay so you can
10:20just see it again every low takes
10:22liquidity when it's formed again we come
10:24down we take liquidity in the formation
10:26of the Zone if I zoom in here a bit
10:28right sometimes s it's a bit more subtle
10:31but we get this Supply to demand flip it
10:33takes liquidity to fuel that next move
10:35up okay not quite enough to break
10:36structure we come down grab the
10:38liquidity into this POI if we get that
10:40next move into the upside and you'll see
10:42that time and time again we get the
10:44liquidity sweep before we get that Next
10:46Movement to the upside here we again
10:47equal lows into our POI increasing the
10:49probability that that next strong piece
10:52of structure is going to form rinse and
10:55repeat so identifying zones that will
10:58form through sweeps of liqu
10:59is a great signal that there was
11:01institutional involvement there so when
11:03you're trying to refine what potential
11:05zones you want to trade from in the
11:06future they are great things to look at
11:08so that's looking in the past but now we
11:10look into the future and go where is
11:13there available liquidity that
11:15institutions May potentially use for us
11:17to then try and trade in line with that
11:19direction let's take a look at that so
11:21sweep zones show us potentially where
11:23they entered previously the concept of
11:25inducement will show us where the
11:27available liquidity is for them to use
11:28if they going to enter again okay so if
11:32there is no available liquidity to the
11:33left there's no structural load to the
11:35left and if there's no structural lows
11:36built to the right there's no available
11:38liquidity where is the available
11:40liquidity it's going to be behind the
11:42Zone itself okay and that's very often
11:44when you will see zones fail okay so
11:47here in example no liquidity to the left
11:50nothing built to the right the only
11:51available liquidity for the big guys to
11:53use to sell against is behind the POI
11:56itself and that's where you see that
11:57trap and the zone get swept now on this
12:01occasion right the top Zone doesn't have
12:03any liquidity to the left and nothing to
12:05the right so now the available liquidity
12:07is behind that zone and we can use that
12:10sell side liquidity or the institutions
12:11will be right to get long in that
12:13previous Zone and that increases the
12:15probability of this being the POI that
12:17breaks out okay we can see that here
12:19this Zone down here had no liquidity to
12:21the left nothing built to the right so
12:23that ends up inducing buy side liquidity
12:26for the extreme POI that's the one that
12:28holds and then we go okay so that's if
12:30we have available liquidity to the leg
12:32in the left or if there isn't available
12:35liquidity in the legs to the left we can
12:36see it built to the right okay here no
12:39immediate structural low in the leg to
12:40the left so we see those clear equal
12:42lows that also broke structure built to
12:44the right now there's available
12:45liquidity for those long positions to be
12:47filled or ideally you get it both on the
12:50left and on the right and then you get a
12:52high probable POI now you need to
12:54systemize this you need to know exactly
12:56what is mechanical definition for where
12:59you can see inducement build okay you
13:02need to have mechanical rules for that
13:04if you're going to use inducement and
13:05the legs left how near to your Pei does
13:07that need to be you need to have
13:09Mechanical Solutions for that when is it
13:10relevant when is it not relevant on what
13:12time frames is it relevant for you can
13:14you use it on your lower time frame what
13:16phases of the market okay these are all
13:18things that you need to make as
13:19systematic as possible and that's what
13:21we have done with our trade plans okay
13:22that we have with our community they
13:24know what to do in every scenario and
13:25they have exact mechanical rules for
13:27this otherwise you can end up just
13:29justifying every single move in the
13:30market inconsistent actions inconsistent
13:33results okay we need to systemize it
13:36okay so quick example here on the chart
13:38right we are clearly in the bearish
13:40market now as price is coming into this
13:42Zone here what do we notice straight
13:44push no liquidity in the leg okay no
13:47strong liquidity is built in the right
13:49none of these highs break lows so what
13:51ends up happening the only available
13:52liquidity is behind the Zone itself okay
13:55we see this high and this High get swept
13:57and eventually that produces enough buy
14:00side liquidity okay for the big guys to
14:02sell against to fuel that Next Movement
14:04to the downside right we get a new
14:06structural range to work within okay
14:07cool we want to try and capture those
14:09shorts we've got one zone here and then
14:11the extreme Zone here what do we look
14:13for with our liquidity crime uh
14:15liquidity requirements that's a straight
14:16push there's no structural High here in
14:19the leg nothing is built significant to
14:21the right with the rules that we use so
14:23where is the available liquidity it's
14:24behind the Zone itself that ACC as the
14:26inducement for the extreme Zone and
14:28eventually we get the move that goes to
14:30the downside okay and get some
14:32corrective Asia price action coming into
14:34London next day right let's zoom in we
14:36can see here nice supply chain forming
14:38but there's no available liity in the
14:40leg so what film builds to the right we
14:42have a high that breaks a low okay and
14:45what does that do that induces buy side
14:47liquidity behind that strong high now
14:49increasing the probability that there's
14:51going to be institutional shorting
14:53potentially from here to fuel that Next
14:54Movement to the downside okay we're get
14:56another break of structure here's our
14:58new structural range we're working
14:59within okay now we have a Zone here but
15:02what do you notice there is a straight
15:03push here right there's no available
15:05liquidity in this leg so what do we need
15:08to see we need to see strong liquidity
15:09built in the pullback right to increase
15:12the probability that this Zone May hold
15:14otherwise where is the available
15:15liquidity it's behind the high itself so
15:18what ends up happening that high ends up
15:20breaking okay and then there's enough
15:24fuel to fuel the move to the downside
15:25okay no liquidity to the left nothing
15:27built to the right that high gets swept
15:30now the big guys can get short
15:31potentially using that buy side
15:32liquidity to fuel that next leg you
15:35starting to see now how all of that
15:36logic starts to tie together to help you
15:38formulate trade ideas to help you
15:40increase the probability of what you
15:41expect but again you need to combine
15:43this with all of the elements that you
15:45use in your trading it is not going to
15:47solve your trading on its own so how can
15:49we start to take advantage of these
15:51concepts with our entry models now
15:53imagine you've done all of your high
15:54time frame analysis and you found a
15:56really strong bullish idea okay you have
15:58your M15 Zone and now you're on the M5
16:01and you want to look for your entry
16:02model okay so entry model one would be
16:05you wait for your strong liquidation to
16:07occur well what do we have this low here
16:10broke this high so it's broken some
16:11structure that now gives us strong
16:14available sells side liquidity below
16:16that low potentially for institutions to
16:18use coming into our POI so now we can
16:21refine the POI to potentially increase
16:23our uh risk to reward right to this Zone
16:27Here and Now perhaps you want to set
16:29your limit order here and that would be
16:31an example of Entry model one okay and
16:33you would look for price to tag you
16:36in let's see okay and you will now be in
16:39the trade okay so that would be how you
16:41would approach entry model one entry
16:43model two is you're not going to leave
16:45your limit order there you're going to
16:46wait for the market to start to move
16:48back in your favor and this is where you
16:50can Trail the candles okay once the
16:51liquidation occurs you Trail them down
16:53and you're looking for price to take you
16:55in but again you need to have very
16:56mechanical rules on how you do this how
16:58do you SI your trade when does the trade
17:00idea get invalidated okay you need to
17:02know exactly that and also sometimes
17:04this liquidation isn't going to be very
17:06near your POI so you need to have a
17:08mechanical way to decide how near that
17:10needs to be okay so that would how you
17:14how you do entry model 2 and then you
17:15get tagged into the trade okay but again
17:17the downside of this is price can
17:18mitigate here and push down lower we
17:20don't know that so that's where entry
17:22model 3 comes in if you prefer that
17:24where you wait for the market to clearly
17:26shift okay then we get the movement to
17:28the upside so now you would look for
17:30price to pull back in in whatever way
17:32you want to do that okay so either you
17:34can look to enter on that extreme demand
17:35Zone some of you might want to use
17:37Fibonacci as a case so you would have
17:39like the 618 whatever you want to use
17:41some of you might you want to use fair
17:42value gaps whatever that is this entry
17:44model is great for the amount of
17:45confirmation that you get but here's the
17:47risk right let's say you're entering on
17:48the extreme price doesn't always pull
17:50back to tag you in and you can just miss
17:52out okay so you need to pick the
17:55approach that works best with your
17:56psychology and the one that you find you
17:58have most success with over time test
18:01test and test some more now the concept
18:03of high and low resistance liquidity can
18:05be really useful just for us to
18:07anticipate how price potentially May
18:10behave okay so imagine you have a
18:12bearish market now when price starts to
18:14pull back if you see that it just leaves
18:16a lot of corrective lows and there was
18:19no liquidity sweep once that pullback
18:21forms that's often a very good
18:23indication that the overall pullback
18:25won't be that deep because Institution
18:28have not had the opportunity right to
18:31use the cell sign liquidity that's
18:33generated below those lows in order to
18:35get long and fuel that deeper move so
18:38usually when you see that a low form
18:40like this price won't pull back that
18:42deep and it will come into a less well
18:44priced Zone okay and then that's usually
18:47if you get like a strong liquidation
18:49around this POI you can trade it with
18:51more confidence even though there's
18:53cause for higher prices because we now
18:55have that resting liquidity to Target to
18:57the downside right that low resist
18:58resistance liquidity whereas if a low
19:01forms with a strong liquidation often
19:05not always often that can be a sign
19:07right that this move was generated with
19:10that strong institutional activity using
19:12that sell side liquidity to get long and
19:14that's very often where you'll see a
19:16much deeper pullback and therefore you
19:18can use that as information to
19:20potentially not trade this POI or to
19:21only expect a quick reaction and expect
19:24price to come up to those more premium
19:26levels before we see that movement there
19:28to the downside so in this example we
19:31are in a clear bearish Trend we're
19:33pretty oversold to the downside now
19:35there's no strong liquidation here and
19:37price is pulling back pretty
19:39correctively okay leaving a lot of rest
19:41in liquidity for price to Target now
19:43when I see that type of price action
19:46that's a pretty good indication that
19:47we're not going to see a very deep
19:49pullback in most occasions right so that
19:52means you can be a bit more aggressive
19:53with your shorts shorting at more
19:55discount prices right now obviously
19:57again this concept on its own is not
19:59that useful you need to combine it with
20:01everything else in your analysis right
20:02obviously if we're coming off a
20:03beautiful high time frame level things
20:05like that then you know use a bit of
20:07Common Sense there so we see price start
20:10to push to the downside and chop around
20:12that low now what happens here okay is
20:15we if I zoom in we sweep or not we price
20:18sweeps this significant swing low here
20:21right and we get a liquidation of that
20:23low but what also do we get in the
20:25immediate price action this low here
20:28broke this high so it's somewhat of a
20:30strong low giving us another uh you know
20:33inducing even more sell side liquidity
20:35below this low and this low here and now
20:37if we start to see price shift to the
20:39upside we can start to anticipate that
20:41institutions are now going to use that
20:43to fuel a much deeper pullback okay um
20:46and this is just a really good concept
20:48that you can use to now anticipate how
20:50price is likely to behave right so if
20:53you see that you can now obviously see
20:55that this is likely going to be a trap
20:57and anticipate we can can play a much
20:59deeper swing pullback because there is
21:01now available liquidity for that to
21:04occur so now to bring everything
21:06together that we've just learned we're
21:07going to look at one of these sort of
21:08schematics that was taking the piss out
21:10of at the start but I'm going to try and
21:12simplify it for you and pay attention to
21:14what actually matters in your trading
21:15okay so imagine we are in a clear
21:18bearish swing Trend really what we want
21:20to be doing is trying to capture the
21:22shorts here to get that lower high for
21:24that next leg right so as price is
21:27pulling up to two of our main pois here
21:30now we want to be thinking about
21:31liquidity okay if there is no available
21:34liquidity in the leg to the left we want
21:35to see it built to the right none of
21:37these highs break structure so we don't
21:39have any liquidity Bill okay people
21:42might get short here which is fine price
21:43then shift structure to the downside
21:45taking out this liquidity below these
21:47lows okay what is that going to do
21:49that's going to induce people to now
21:51want to sell from here right because
21:52they've seen that Mitigation Of Supply
21:54they've seen structure shots to shift in
21:56their favor so what are they going to do
21:57they're going to want to get short
21:59they're going to get short here stop
22:00loss is above the highs right so what is
22:02that doing it's inducing buy side
22:04liquidity above that okay that now
22:07institutions can potentially use to get
22:10short once price wipes out that
22:12liquidity right so all of that liquidity
22:14build above a high that broke a low
22:16above these equal highs where other
22:17people are now selling the double top
22:19okay and now we have that we have the
22:21induced liquidity I get rid of these
22:22lines into our extreme level so this can
22:25be that first potential entry in which
22:27you want to get short okay maybe you
22:29want to wait for a bit more Confluence
22:30so what can you wait for you can wait
22:31for Market structure to shift back in
22:33your favor okay so now order flow is
22:35bearish and now you have a higher
22:37probable POI to trade from right
22:39obviously there might be multiple pois
22:41but use your knowledge no liquidity to
22:42the left no liquidity to the right where
22:44is the available liquidity it's behind
22:46the high itself this now becomes a
22:48higher probable area to short okay what
22:50do you have you've got double bottoms
22:52here for liquidity to Target okay
22:55because before that what you'll have is
22:56people will see this low break this High
22:59okay they don't understand multitime
23:00frame analysis they don't understand
23:01what's going on when price then comes
23:03back down into this double bottom here
23:04what are they doing they're trying to
23:05get long okay there's all sorts of
23:07Madness and reasons as to why liquidity
23:09can be generated everywhere there's so
23:10many different ways you can look at it
23:12you don't really need to worry or get
23:13your head around it what you need to
23:15identify is Market structure is giving
23:17my me my direction I've got well priced
23:19pois I want to trade from but I know
23:22that I need to see either liquidity to
23:23the left or to the right before I'm
23:25going to get involved and then it's down
23:27to you whether want to wait for more
23:28Confluence such as waiting for Market
23:31structure to shift back in your favor
23:33okay so there's a lot of different ways
23:34you can cut and slice this but we have
23:36very very mechanical rules on when we
23:38will use liquidity to the left or when
23:40we ignore that and we must use it to the
23:41right how near it needs to be what we
23:44need to see exactly for our entries and
23:46when a trade idea is invalidated you
23:48need to have that very very clear okay
23:49so if you want you know we've done all
23:51the hard work for you if you want our
23:53mechanical trade plans you know where to
23:54get it right you can sign up to our
23:55community down uh down in the
23:57description below but but there is tons
23:59of information now in this video to help
24:01you think about what's relevant to help
24:03you think about how to make it
24:04mechanical and it's up to you now to use
24:06what's what you resonate with test it
24:09consistent actions leads to consistent
24:11results that's how you will do it so to
24:13try and simplify everything and
24:15summarize it for you okay there's one
24:16thing you're going to try and remember
24:18from this video is that the big guys
24:20need opposing liquidity to enter the
24:22market with minimal slippage so we want
24:24to try and identify where those opposing
24:27liquidity pools are going to be
24:28for them in the opposite direction of
24:31where they want to trade so if you're
24:33looking to buy from a demand zone or
24:34from a level you want to see that cell
24:37side liquidity generated in front of
24:39your level to increase the probability
24:41that that demand zone or that key level
24:43is going to hold and then vice versa for
24:46if you're looking for shorting
24:47opportunities once you kind of get that
24:49logic embedded in your mind then you can
24:51start to simplify and form mechanical
24:53rules to use that to your advantage
24:56within whatever framework you wish to
24:57use now if you want to learn more about
24:59our framework make sure you sign up to
25:01our free training video series the link
25:02will be in the description below the
25:04video where we're going to build
25:05everything from the ground up take each
25:07concept really slowly Market structure
25:09supply and demand liquidity Concepts
25:11which you've now just learned how to
25:13formulate your trade plan how to look at
25:14Market phases and all of that good stuff
25:16so if you want to get that involved it's
25:18completely free tons of value you you're
25:20going to be an idiot if you don't sign
25:21up otherwise let me know in the comments
25:23what you thought about this video and
25:24I'll see you in the next one cheers guys

About this transcript

This page contains the full transcript of Master Liquidity Concepts (Mechanical Strategy) by Matt Donlevey - Photon Trading, generated from the public captions YouTube serves with the video. The transcript has 5,495 words across 758 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.