Buy-side liquidity represents buy stop orders placed above important resistance levels.
Sell-side liquidity consists of sell stop orders located below major support levels.
1.1 Liquidity
Buy-side liquidity represents buy stop orders placed above important resistance levels.
Sell-side liquidity consists of sell stop orders located below major support levels.
1.2 Price Void
A liquidity void is a market imbalance that occurs when the price moves quickly in one direction, leaving price levels where no trading occurred due to a lack of opposing orders.
These areas often act as a magnet, attracting the price to return to them and cover them later.
1.3 Price Gaps
Price gaps are spaces in price movement, often appearing on the chart as sharp moves up or down without significant trading volume or clear participation.
These voids can appear in any market and across various timeframes.
1.4 Price Displacement
Displacement is a strong price movement resulting from significant selling or buying pressure.
It often appears as a single candle or a group of candles all moving in the same direction.
1.5 Ideal Entry Points
These represent the best places to enter a trade and can be identified using the Fibonacci tool.
They are often between the 61.8% and 78.6% levels of a price expansion retracement.
1.6 Accumulation Areas
Look for accumulation areas above resistance (buy-side liquidity) or below support (sell-side liquidity).
These areas are often filled with stop-loss orders and are clearly visible as highs and lows.
1.7 Concept Review
This is a description and uses of many concepts I have recently explained.
Take a screenshot and study it well, as these are concepts you should know and practice.
2. Market Structure A bearish market structure appears when the price starts to decline from the peak on the left side of the chart, forming a series of lower highs (LH) and lower lows (LL).
The bullish structure begins to form after a change in market structure (MSS) and appears as a series of higher highs (HH) and higher lows (HL).
2.1 Understanding the Trend The chart illustrates the movements of the larger timeframe (black) above the movements of the smaller timeframe (gray).
Gray against black = temporary correction, gray with black = resumption of trend.
2.2 Timeframe Alignment The 4H timeframe changes its structure and begins a correction, led by the M15 timeframe after its shift to a downward trend.
When the price reaches the discount area, M15 goes back up, then M1, aligning the timeframes with the upward trend again.
2.3 Swing Highs and Lows Swing Highs act as resistance, and the price may find it difficult to break through them upon returning.
Swing Lows are points where the price decreases before it starts to rise.
2.4 Change and Break of Market Structure (MSS) indicates a potential trend reversal when the price breaks a significant low or high without confirmation of the previous structure.
A break of structure (BOS) occurs when the price surpasses a high or breaks a low in a clear direction.
2.5 The difference between BOS and MSBOS focuses on clear breakouts of support or resistance levels.
MSS refers to a broader change in direction, not just a single breakout.
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