This Liquidity Trading Concept Is Actually Genius — Transcript

Full transcript

1. 0:00Look how this trader explains liquidity.
2. 0:01>> Liquidity works like a rubber band.
3. 0:04Whenever price is in a range, the rubber
4. 0:05band is like this. [music] When you grab
5. 0:07liquidity, right, you then go down to
6. 0:10grab to give you that spring outside of
7. 0:12the range, right? Otherwise, we're just
8. 0:14going to bounce between [music] these
9. 0:15two spots like this. Now, look at
10. 0:17yesterday's example how we grab
11. 0:19liquidity, right? [music] This was just
12. 0:20a tight range. We broke out, fake out.
13. 0:22Why? Because there was no liquidity
14. 0:24grabbed. Where did we go? We went down,
15. 0:25grabbed liquidity. That's your rubber
16. 0:27band coming down to give you what?
17. 0:29>> I actually
18. 0:30>> spring here that moved [music] price all
19. 0:31the way to up the upside.
20. 0:33>> Okay, what I like about his example is
21. 0:34that he is going with the trend. There's
22. 0:36a little bit consolidation and then
23. 0:37break out to the upside after a
24. 0:39significant move. So, kind of a bull
25. 0:41flag type scenario, but you can also
26. 0:43trade it as a bear flag. Trading with
27. 0:44the trend's always going to be much
28. 0:45stronger. And look at this indicator
29. 0:46that I built around this idea. What's
30. 0:48really sick about it is when it
31. 0:50identifies consolidation, it plots a
32. 0:51box, but only when a sweep is detected.
33. 0:53And then when you get a breakout from
34. 0:54that consolidation after a sweep, you
35. 0:56get a nice little V formation like his
36. 0:58rubber band that he had with a breakout
37. 1:00signal. And as you can see, a nice
38. 1:01continuation. Now, this doesn't happen
39. 1:03every single day, but I added an alert
40. 1:05system so you'll get identified when a
41. 1:07sweep occurs like this. And then all you
42. 1:09got to do is wait for that breakout like
43. 1:11you got here. You get your rubber band
44. 1:12detected there. You would take your long
45. 1:14at the breakout, stop below that sweep
46. 1:16low, target a one to one or one to two,
47. 1:19and let it ride. Bang, perfect
48. 1:21continuation. How about on Bitcoin?
49. 1:23Let's see. There we go. We got a sweep.
50. 1:24This is on five-minute Bitcoin. Look, we
51. 1:26got a very nice significant trend
52. 1:28already. We're looking for that
53. 1:30continuation. We get our breakout signal
54. 1:32right here with a B. We would take that
55. 1:34short right there. You can put your stop
56. 1:36above the box here if you wanted. Go for
57. 1:38that two to one or the one to 1.5,
58. 1:40whatever you prefer. Let it play. Bang,
59. 1:43perfect setup. Now, I'm not going to sit
60. 1:44here and say every setup is perfect. It
61. 1:46all comes with context. Your best setups
62. 1:48are actually going to come from clean
63. 1:50consolidation after an aggressive
64. 1:52[music] move. It's pretty much the same
65. 1:54as a traditional bull flag and bear
66. 1:56flag. Take your short, stop above the
67. 1:58high, or if you want to be a scalper,
68. 1:59you can do about 50% of consolidation,
69. 2:01go for a one-to-one scenario, and yet
70. 2:04again, another perfect move. If you are
71. 2:05a scalper, there are potential setups in
72. 2:07a reversal opportunity. As you can see
73. 2:09here, we have a sweep off a low from a
74. 2:12downtrend into a breakout signal with
75. 2:14strong volume. Take your long. If I'm
76. 2:16scalping, I want to do 50% of the box or
77. 2:19just the previous candle's low and go
78. 2:21for that one-to-one as well. Bang,
79. 2:23perfect setup for momentum shift. And I
80. 2:25actually built this entire indicator
81. 2:27using an AI called Lux Algo Quant. It's
82. 2:30better than Claude code or Codex because
83. 2:31it's strictly built to develop trading
84. 2:33indicators. So, you can see here, I
85. 2:35explained it with a screenshot of
86. 2:36exactly what I wanted, and then I added
87. 2:38a few things to adjust it to my liking,
88. 2:40and we have the rubber band liquidity
89. 2:42signals indicator. And I'm going to give
90. 2:44you instant access to this indicator
91. 2:45completely free. All you have to do is
92. 2:47comment band, and I'll send you the link
93. 2:49to the indicator in our Lux Algo
94. 2:50library. From here, you can actually use
95. 2:52it in Quant and add any features you
96. 2:54want to the indicator or get instant
97. 2:57access on TradingView.