This NEW Liquidity Concept is Genius — Transcript

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1. 0:00If you think that this is a liquidity
2. 0:01sweep, and then start looking for longs,
3. 0:03well then you are always going to be
4. 0:05stopped out. And let me explain exactly
5. 0:08why. You see, in an uptrend, our lows
6. 0:11are our liquidity. But there's a key
7. 0:12criteria of these lows that have to be
8. 0:15filled. You see, this here is perfect
9. 0:17liquidity because it broke the high it
10. 0:19came from. This here is not liquidity
11. 0:21because it did not break the high it
12. 0:23came from. So if we look at this low
13. 0:25here we mentioned, this is not liquidity
14. 0:27because it did not break this high it
15. 0:29came from. Whereas if we mark something
16. 0:31like this, this is perfect liquidity.
17. 0:33Why? Because you can see it broke the
18. 0:34high it came from. So if I enter after
19. 0:36this has been swept instead, and target
20. 0:38the external high, because I know this
21. 0:40is the right liquidity sweep to use, of
22. 0:42course this one is going to smash take
23. 0:44profit.
24. 0:44>> Okay, so identifying liquidity based on
25. 0:47the trend, I do like that concept a lot.
26. 0:50Obviously, there's liquidity at highs
27. 0:51and lows regardless of the trend,
28. 0:53there's always going to be liquidity
29. 0:54sitting at those pivot points. So to
30. 0:56build this indicator, I'm going to go to
31. 0:57Lux Algo Quant, and I'm going to start a
32. 0:59new chat here. We can build this simple
33. 1:01concept directly into the indicator to
34. 1:03identify a setup. But what I'm going to
35. 1:04do is actually go to his video, and I
36. 1:06like this shot that he had here that
37. 1:08clearly explains kind of what he's
38. 1:10looking for in a setup with liquidity.
39. 1:13So what we're going to do, as well as
40. 1:14draw on it ourselves, we want to
41. 1:16identify setups when we get a break
42. 1:19here, and then when price comes back and
43. 1:21sweeps this low. So I added the
44. 1:23screenshot in there that we just made,
45. 1:24and I said, "I want to build an
46. 1:25indicator that identifies internal
47. 1:27market structure. I'm looking for a
48. 1:29break of structure labels BOS. Once a
49. 1:31BOS forms, I want a signal when price
50. 1:34reverts and comes back to break below or
51. 1:37above the higher low or lower high." So
52. 1:39those are the one that just created that
53. 1:41BOS. All right, I'm going to go ahead
54. 1:42and send that. We're going to let Lux
55. 1:44Algo Quant build it. Okay, so we have
56. 1:45our setup now. So we get a bearish break
57. 1:47of structure here, and then we get a
58. 1:48signal when that lower high ends up
59. 1:50breaking. Now, the idea though is to
60. 1:53continue that move after that lower high
61. 1:55is broken. So we need to identify when
62. 1:57this actually gets swept. So, I just
63. 1:58said I only want the lower high and
64. 1:59higher low signals when they get swept.
65. 2:01So, they get wicked through and then
66. 2:02continue in the BOS direction. So, here
67. 2:04we go. We got a BOS. Price reverts back.
68. 2:07It sweeps this low, closes back over,
69. 2:09and then continues higher. Looking
70. 2:11through multiple time frames and
71. 2:12multiple assets, I am noticing that the
72. 2:14best sweeps is when a candle takes out
73. 2:16that high, but then closes in the
74. 2:18direction of the trend. All right, now
75. 2:19we got an insane indicator. We get our
76. 2:21BOS. We have our plotted lower high
77. 2:23here. Let's see if we get a signal on a
78. 2:25sweep. There's a sweep signal. We take
79. 2:27our short, stop above this high,
80. 2:29targeting a new low here.
81. 2:31Perfect run through the low. Now, this
82. 2:33setup actually doesn't occur every day
83. 2:34because we're going based off of wicks
84. 2:37through that previous high or low. But,
85. 2:39there are also other ways you can trade
86. 2:40this like this. Price breaks through and
87. 2:42then immediately rejects and then heads
88. 2:44lower. So, there's multiple ways you can
89. 2:46actually trade this concept. I just like
90. 2:47it when it wicks cuz it's more ideal.
91. 2:49But, if you want to use this indicator
92. 2:50for completely free, I'm happy to send
93. 2:52it your way. Just comment LIQ and I'll
94. 2:54send you a link.