Master Liquidity Concepts (COMPLETE Course from Beginner to Advanced)

if you can master and spot liquidity early you will be able to enter the trade right before smart money does and take advantage of this huge move and make a ton of money fast so what exactly is liquidity most trading gurus and idiots try to make these liquidity Concepts seems like something so hard to understand and complex but I promise you that by the end of this lesson you will be able to fully understand what is liquidity and how to sport liquidity correctly so what exactly is liquidity you must understand that for every buyer that

is a seller because there needs to be a seller on the other side to fulfill your buy order this also means that for every winner there will be a loser that's just how trading is like and every time you lose a trade you are essentially adding liquidity into the market this is the key about what we're going to cover later so this is what it kind of looks like right you are retail Trader you get your trade stopped out because the smart money is so smart enough to know that you are an absolute idiot and

purposly going to push the price down trigger a stop loss you lose your heart money or they just make a out of money now liquidity is not a problem for retail Traders like us because we are not trading with a large sum of money however it is a problem for the big financial institutions because they are trading with millions and millions of dollars which means if they want to enter for a buy right they want to buy EUR USD with a million dollars they need to look for someone who is willing to sell a million

doll worth of Eur USD to them which is extremely rare therefore they need a large amount of liquidity in the market in order to place large orders and how do you think they're going to get this liquidity by causing you to lose because when you lose you add liquidity into the market remember so let's see what this actually looks like on the charts so when you see this you probably think that price is in the uptrend right because price is creating a higher highs and higher lows and higher highs and higher lows and right now

price is creating a higher highs so let's say you enter for a buy somewhere right around here and the first thing like the first thing you do is to placeas your stop loss right below this last swing low right here now let's say on the other hand of this Market on the other side of this Market smart money want to buy your USD in B okay and they need a lot of sellers in order to fulfill that order right so right below this swing low we have stop losses from the current buyers who are inside

the buy position the long position in addition to that we also have the breakout or rather the reversal Traders the people who have a sell order somewhere right around here so that if price actually break through the previous low they'll be entered into a sell position so here there is sell stops and there is also stop losses of current buyers so this is what smart money will do they will purposely manipulate price to grab liquidity by triggering the stop losses of the current buyers and the sell stops of the sellers and this is exactly why

it is imperative that you train your eyes to spot liquidity because if you don't you are most likely going to become a victim and lose your H ear money if you're on the wrong side of the market in this case what SM money did was that they purposely manipulate the buyers to actually enter for Buy ERS rer and place their stop loss below this low and also all the sellers who have their sell stop at this area rer and then they purposely push the price down triggering all the orders that we have right here and

all these buyers and sellers that out of the market right now and when they lose a trade remember they add liquidity into the market and that caus price to just hit up in like a like a rocket way like a literally Skyrocket all right and when this happens this is actually what we call a liquidity s right where price has already created that liquidity Sweep come down here grab all the liquidity before fueling the up move right here and continue heading back up now quite simply put liquidity is basically pending buy or sell orders plus

stop losses now the question becomes how do you exactly spot liquidity when you are trading and that is where the concept of liquidity zones come in so liquidity zones are basically where resting who of orders are sitting and where institutional activity may have occurred like I said our job as Traders is to follow the footprints of the institution Traders the big financial institutions the smart money because we understand that they are in charge of this huge move and in order for us to you know get in with those huge move with them and trade with

them rather than against them we have to understand this liquidity zones and make sure that we added defy them properly so there are a few type of places where there will be a lot of liquidity right and those are your equal highs and lows your swing highs and lows your trend lines and your support and resistance levels if you look at these liquidity zones right you'll realize that these are actually things that retail Trader look at things like your trend lines your support and resistance levels your even your double top and dou bton right here

right retail Traders are looking at this and they are placing their buy or sell orders based on these patterns that are showing on the charts and that is exactly why these are pending orders yet to be filled which give us liquidity so let's go through one by one so if you look at equal highs and equal lows this is actually your double top and double bottom chart pattern right is where price creates the first STP and then come back up to retest that top before collapsing and when retail Traders they see this they will most

likely end up for a sell right here right after price cre this double bottom I mean double top and what happens next is that they're going to be placing that stop loss above the stop structure and this give us liquidity right and there will also be breakout traders who will place their buy orders right here right pending buy orders right here so that if price eventually break above these highs right here they will be triggered to enter for a buy order so you can see buy orders right here there is also stop losses right here

for the sellers right here and both of that give us liquidity at this area right here your liquidity Zone and sometimes what smallart money will do is that if there's not enough liquidity for this move to happen right price will be pushed up right here triggering out all the orders all the buy orders all the stop losses right here before pushing back down here and go back in that particular direction because right here it created your liquidity Swip right it give the price enough fuel to continue this down move so this would have been somewhat

of like a liquidity zone right here that have been tap into same thing with the double bottom right just the opposite of a double top right that is liquidity below these lows right here and smart money they might push the price down here break past the previous swing lows grap liquidity before heading back up now next is your swing highs and your swing Lads right we know that in the uptrend price is creating your higher highs and higher lows and in the downtrend price is creating your lower highs and lower lows and within this swing

highs and swing lows there will be your stop losses your bending buy or sell orders once again there will be liquidity now in this scenario right here price actually created an up move right here before it starts retracing and then creating another push phase and create your new higher high right here right and then what happens di was that price actually goes down and actually break past the last higher low right and when this happens this could signify to us that price is about to change right this uptrend that we had previously could potentially be

changing into a downtrend in this scenario right here what price will most likely do is that price is going to come up here to somewhere right around here and create a lower high before continue back down right because chances are if price break through the last higher low to somewhere right around here it won't have enough liquidity to continue this down move and go all the way straight down right remember price will always have to retrace and that is why it needs to retrace so that they can have more liquidity before pushing price down even

further and that is why price will retrace to this zone right here and grab the liquidity around this area create a lower high before continuing down even further same thing in this bearish scenario right here right price will most likely come down here retest create a new higher low right here before continuing the uptrend now if you're still unclear of what liquidity is liquidity is basically a magnet for price to be attracted to because the market needs to rebalance and in order to fewer further move right because the price cannot go up forever or go

down forever it's to go down retrace a little bit so that they can gain more fuel just like a car before continuing and heading back down right the market will never ever move up or down in a straight line it needs some sort of fuel and that is where liquidity come in and then you have your trend lines right trend lines is where you know if price is creating a uptrend right you can draw your trend line connecting all these higher lows right here which means all the stop losses are going to be below all

these higher lows as well and which means there's going to be liquidity below this area right here so that is exactly why some sometimes smart money what they would do is that they'll push the price down and actually break past the trend line and actually still H back up right because they know for a fact that if they push the price break past the trend line that we have right here new retail Traders are going to think that this trend line is no longer working and you will get out of your position or you might

even enter for a sell because you see this as a trend line break and indeed that scenario you have been 100% wrong because smart money will just push the price up like this once again this happen sometimes not all the time but sometimes sometimes a trend line break will be valid sometimes it would't and lastly we have our support and resistance levels the most simple concept that you guys learn when you start trading and is actually the biggest threap right because like I said smart money knows that you are trading based on this support and

resistance levels here here and they going to use take advantage of you right they're going to take advantage of your stupid brain so what they're going to do is that they know they you have a resistance right here the push the price uh break past the resistance triggering your stop loss for the sellers and also making the buyers thing that price is going to break out right now and then they're going to push the price back down and then they're going to break fast the support and then they're going to push the price back up

and down and they're just going to play mind games with you right and in reality what they are really doing is that they are really trying to trigger your stop loss CES you know cause you to get out of your trade so you add more liquidity into the market and fer their move and a lot of times you are see this pattern happen over and over again where you maybe enter for a buy right here and you place a stop loss like below this load price will purposly get all the way down here push all

the way down here hunt your stop loss trigger a stop loss before heading back up in that particular direction and then you're sitting there regretting like oh my God I should have placed my stop loss wider because price purposely hit my stop loss and then go up oh no I'm oh no my trade didn't not go as planned now in that case you deserve it because you don't understand how liquidity works if you understand how liquidity works you will know exactly what price is going to do next and that is when this quote comes in

if you can't identify the liquidity then you are most likely the liquidity now let's go on to the charts and actually apply whatever we have learned so far about liquidity and see how all this works on the charts so when you look at Ed chart right the first first thing the first step you should do is to identify the market structure I've mentioned this for like the past three years right the first thing identify the market structure because you cannot spot liquidity if you don't even know what's the overall trend Direction you don't even know

what's the overall orderflow of the market whether it is bullish or bearish so first things first identify the market structure and you can see price is creating your lower highs lower lows lower highs and lower lows and you can see price created a low high right here and then it break past this previous low creating your bearish break of structure right here before retracing creating another lower high and then creating another barish Bak of structure right here right where price broke past the last uh lower low and right now price has retraced once again creating

a new lower high but he has not break past the lower low right here yet right you can see this is the last low and right now most likely if price is going to respect this lower high price is going to go down here and break past this lower low right here so ideally that is what we want to see in price but if You observe closely what do we have right here we actually have your equal lows right your double bottom this means that there will be liquidity in this area right here below all

these equal lows so you can actually mark up like a little liquidity zone right right here I like I just like put dollar sign because yeah it's it shows me that smart money are actually going to enter into the market soon so we can expect price to actually goes down here Swip the liquidity below this load before heading back up right that is what we could potentially expect but like I said we never ever want to make sure that we assume what price is going to do we always want to make sure that we actually

React to what price is going to do because price can actually go to somewhere around here and even go back up like this right right so we always want to make sure that we look and be patient to see what price going to do next first then enter for our trade so you can see price goes down slowly and you can see price breaks past the equal lows that we have right here so the Rhythm traders who are bullish because they see this double bottom right here they're going to be entering for the buy position

right here and place their stop loss below this equal lows right here because they see this down bottom pattern and you know tax are showing them that that button means you should enter for a bite right and they place that stop loss below this equal lows and look at what happened here price got push down trigging all their stop loss so the buyers who actually end up a buy position right here they're out of the trade okay so they add liquidity into the market already now on the other hand we also have retail traders who

are breakout traders that means that if they see price break structure like this right price break past the last lower lows means what price is going to continue going down already they're going to be entering for the sell position right here as well and when they enter for the cell position upon the breakout they're going to be placing the stop loss above right here right above right here above this liquidity zone right here and in that scenario look at what happen next they also get stopped out when both side the buyers and the sellers the

retail Traders they are completely out of the market spart money was able to grab liquidity right now so in this scenario instead of entering for buy here or a sell here you should have been very patient to wait for price to actually break past the equal lows right here and create what we call your liquidity sweep which I showed you guys just now before entering for the trade so in this example we actually had a liquidity sweep right here because trust me when I say that if price wanted to go down right price would create

this massive momentum and just goes down create a low high low low low high and low low but that is not what it actually shows us if You observe the Candlestick that's forming right here after price has broke past the equal lows price is giving us small Candlestick right here and then look at these two Candlestick right here this show us that the selling pressure the selling momentum is gone the smart money have our or is potentially going to enter into the market soon and they're going to enter for buy position in bulk right and

you can start seeing some sort of bullish momentum right here so this is where you can actually enter for a buy position right here place your stop loss below these lows right here a best better entry be right here right that immediately when price starts showing some sort of signs of bullishness after price actually grab liquidity right that is when you can enter for the trade stop loss below these lows and you can take profit at these highs that we have right here and once again if you look at this what do we have right

here your double top so that is going to be once again the same thing liquidity waiting for you at this AA right here so that would be a very good take profit for us right and that is we can place a take profit right here one is the five R to rock ritual and look at what price does price goes up smash our take profit while all the retail traders in the world just lose the hen money we are over here making their money stealing their hen money and that's just the coh hard truth of

trading right trading is a zero sum game right it's either you become the winner or you become a loser and after watching this video If You Can implement the advice I give you in this video you will be the winner that actually takes the money away from the loser because if you can understand liquidity properly right you will no longer be a victim of the market you will actually be part of the smart money and be able to you know not get your stop loss liquidity all the time and not lose your hard money all

the time but instead be making profits just like this and right now since we're out of this trade right potenti entally we have identified your equal highest right here we're going to be waiting for price to sweep the liquidity Above This highest right here and then that is when we can enter for a sell position right because if you look at the overall trend we are still in a downtrend right once again we are still in a downtrend and ideally we want to trade with the trend right and in that scenario we want to be

looking for our sell position at this lower highs that's forming right here so chances are right now price is potentially forming a new lower high before heading back down to create your new lower low so right now we are waiting for price to take out this equal highs to create a new lower high right here and then that is when we can look for our short position and take it all the way down to the next lower low so that is what we're going to be waiting for right we are waiting for signs that show

us that this little retracement is going to be done and that is only going to happen after price has officially s the liquidity above His Highest right here can see price goes up there once again sip the liquidity above these highs already and that is where you can potentially enter for sell position somewhere right around here once again what happened right here do do you guys realize that I didn't enter for uh cell position right here okay let me just buy play right here you see right here price created a double bottom and I could

have entered for sell position right here immediately after price geted this down bottom but I did not do that because I know that if I do that I'm going to place my stop loss right here and once skin what is that that is your liquidity Above This highs right here so what I want to do is to wait for Price once again to actually take out the liquidity Above This highs here before entering for my position you see bam right there that is where potentially a liquidity s is going to happen soon look boom there

we have it the liquidity Swip just happened right here on this double top and this is potentially a new lower high on the overall trend right you can see overall trend is the last lower high and this is the next new lower high and then this is the most recent lower high and if you look towards the left that is actually your supply zone right here right there is your supply zone right here and just nice price has mitigated your supply Zone price mitigated your supply Zone you got your liquidity s Brier and based on

Market structure price also in a lower high and yeah based on that we got all the confluences in the world for actually for us to actually end up our sell position somewhere right around here but a stop loss Above This highest right here ideally I will potentially enter for the sell position on like a 1 hour time frame like a smaller time frame and I have enter like somewhere right around here and then I will move my take profit all the way down here at this area right here right and this this is the last

low and you can also draw like a little demand Zone here if you want and yeah this would have been like a very nice potential trade right here and just see on a higher time frames price goes down goes down and eventually smash I'll take profit right somewhere right around here smash I'll take profit before price actually reverse and hit back up here now in in this scenario right here right the moment price actually comes down here tap into this demand Zone that we have right here you can manually just take profit and get out

right ideally like I said I have take profit somewhere right around here I'll just refine this Zone a little bit somewhere around here and yeah then that would be my take profit price step into this Zone and a reverse and hit back up and look at what price does once again price gra the liquidity below this lows that we have right here right chances are if you look at it from here that is actually a support level right here and price actually creating your liquidity sweep right here before getting the momentum and hit back up

now let me show you guys another example to make things much more clearer to you and this time around in the uptrend so let's say price in the uptrend once again creating a higher highs higher lows higher highs and higher lows right here and like I said nothing goes up forever it needs some sort of momentum so let's say price is in the uptrend right now you know lots of bullish momentum right here and we could be expecting price to create a new higher high right here price created a higher low right here so I

can actually mark up this low right here and then price is hex actually also created a higher high right here we know that there is going to be liquidity above the swing highs right here right above the swing highs there's going to be liquidity and then there is also liquidity below the swing lows right here so we are waiting for price to Swip the liquidity either from the upside or the downside so we still wait and see what happens next right here price goes up here you know slip all the the liquidity that we have

above this swing right here now what do you think is going to happen next we still wait first of all you could have easily enter for a sell position right here right right after price ship the liquidity right here you can enter for sell position right here and then place your stop loss above place your take profit all the way down at this swing low so in this case right after price has s liquidity from the upside look at what happens next price goes down here and go all the way down to this low that

we have right here so if you actually enter for a sell position right here right after this liquidity s place a stop loss above these highs you will have me like a very nice 1 is to six R to ratio trade very very nice now observe where price go next after price reverse at this higher lows it goes up here to the liquidity Zone that we had earlier right remember there is liquidity Above This high right here and then there is also your liquidity zone right here so this whole entire zone is your liquidity zone

so if price goes up here we know for a fact that smart money is potentially going to enter for sell orders right here right because once again there is selling liquidity at this area right here so the moment price reach up here you could potentially enter for sell somewhere right around here after getting some sort of selling pressure right some sort of signs that actually show you that the selling pressure enter for sell right there place a stop loss below these lows once again I will ideally place my stop loss above these highs right here

once again right you can see price obviously spp the liquidity above these highs that we have right here before heading back down sweep the liquidity right here before heading back down so when price is breaking past this liquidity Zone that we have right here right I wouldn't be really worried right if you could even like go down to like the smaller time frame and you realize that price is just simply swipping the liquidity Above This highs right here so if you want to have like a much better entry have probably entered somewhere around here right

after this liquidity should happen you see this first sign of selling pressure right here right your bearish candles stti place your sell order right there manually and then you can actually place your stop loss above these highs and take profit at this area right here and you can see huge move right huge move happens right after price actually spp the liquidity above the highs right here now the thing about liquidity is that I don't really use liquidity as my main Confluence I use it as an additional Confluence for me to confirm for my entry so

what that means is that I'm going to be focused on Market structure supply and demand first as the foundation before even thinking about liquidity so I want to enter for trade based on Market structure right I want to enter for a buy based on uptrend and I'm going to be seeing whether the internal structure align with the external structure or not and then I'm also going to be waiting for price to get your supply or demand Zone and then finally then I look at liquidity so my focus is never on liquidity because liquidity can it's

just an additional Confluence for you to enter for the trade what this means is that you need to master Market structure and supply and demand zones and even order blocks first before you can even think about understanding liquidity so what I would advise you to do is to actually go through this playlist right here this Market mechanics playlist right here where I literally give you an complete cost on each of these things I just talked about your Market structure your supply and demand zones and your order blocks go through every single video in this list

watch you from the start till the end and then once done then come back to this liquidity Concepts video and everything will just mix much more sense and I should have said this at the start of this video but whatever right so watch this whole playlist and then come back to this liquidity Concepts video and you will have a much more better understanding of whatever I just talk about right here and the truth is that market structure will always be the most important thing when it comes to understanding how and why price move liquidity is

just an additional Confluence so go and watch that playlist and as always remember you're just one trade away mAh