Identify correct areas of liquidity

We can say that because we emphasize the recent SnD or Liquidity areas above or below the current price on HTF and LTF time frames.

When the price surpasses the recent SnD or SSL/BSL areas, we will mark the next level of these areas in the bullish or bearish trend.

Sure, check the below screenshot

Sufshiken

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Thank you @Sufshiken

I wanted to ask a personal question if that is okay, if so

How come you still learn off ICT when he makes questionable allegations and has been exposed for some things?

Does that not put you off?

I don’t care about the allegations against him. I always try to get good knowledge from professionals or experts in any field. I only apply the selected parts of that knowledge which I found applicable to me after trial and testing.

And it is evident from my posts and images. Isn’t it?

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[quote=“tomo22, post:63, topic:1267199”]
i understand drawing liquidity pools/zones and LS (liquidity sweep), however, what do you mean by drawing from left and right side?

While marking the SSL or BSL, The green candle is Left in a bearish trend and the Red candle is Right in a bullish trend.

@tomo22 I hope you would have already understood it.

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yes i understand thank you

You are welcome. It’s a pleasure to interact with you.

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this is how i see this chart! a little different that you

as with you too.

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I love this topic… :+1:

i have question…
any one here understand relative equal (liquidity)? please explain i want to know about it.

and about liquidity sweep, is that have to sweep the wick or just sweep the body of the candle?

thankyou for the attention, i hope this is not out of the topic

I like this type of analysis, simple and it is also working! now the resistance is almost lost and bearish phase can become next

hi @growinbet, this is my understanding you can scroll up for further information about this topic.

liquidity refers to the ability to buy or sell a particular asset quickly and at a price that is close to the market price.

liquidity has two different types which has been explained well by @Sufshiken

ERL - external range liquidity
IRL - internal range liquidity.

ERL may be looking at swings in the current trend such as intermediate highs/lows and marking them were past business was conducted. this means that institutions may purposefully drive price to a point ( =swing highs and lows) for an entry this means that volume is high and thus liquid which links back to our main definition of liquidity.

IRL using @Sufshiken as an example he uses FVG’s which i am adapting in doing, if you are unaware you can find videos and definitions of FVGs online :smiley: i cannot explain this well since i am a beginner in FVG but he can help with that if you are interested. IRL is supposed to be marked inside ERL which makes sense.

Overall, liquidity for me helps me think more about were SL are being placed by retail traders and were orders may be. Now speaking about this sometimes institutions will know that orders / retail traders are placing trades at liquidity points and will purposefully go to SL of those traders this is called a stop hunt, meaning that they are purposefully targeting a large area of SL were retail traders set them which leads to liquidation of there trades this is known as liquidity sweep too!

i will show pictures sorry for long info. If i am wrong @Sufshiken can assist!

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to answer your question it usually wicks the liquidity zone however, can be a full body candle majority of the time it wicks so yes both count.

here is an example of ERL being shown and eventually swept. If you think about it, we can see how orders would be placed there since price reacted at that point before however, institutions know this which leads to them being stopped out due to a sweep

this is my best attempt at IRL

by the liquidity is somewhat ICT/SMC to an extent, depending if your a PA/TA trader this can be the equivalent of SNR (support and resistence) (break and retest)

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This is sample i found from Gold, consolidation week…

This is 4H chart, it’s often got me confuse at ERL swept, the body swept but not the wick.

This is how it’s look in 1H chart

and thankyou for the explanation, sure it will improve my understanding :+1:

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hi @growinbet, i like this display. I would draw liquidity line at @ 2620 on the dot instead above.

In regards to your question yes, we can consider this ERL sweep, both body and wick counts as a sweep.

i like the secondary line of liquidity as-well sometimes the market will be unsatisfied with certain liquidity levels and may move up/down until satisfied, hence drawing further liquidity lines like you have done is smart

“This is 4H chart, it’s often got me confuse at ERL swept, the body swept but not the wick.”

we can conside either or both this is because a sweep is designed as a stop hunt and it still fufills that purpose whether it wicks or bodies :smiley:

thanks for the knowlendge sir… :+1:

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