what's good guys welcome to boot camp who knows what day but all I know is we are talking about wrapping up our liquidity um little lesson little series within this boot camp so after what we have learned um also guys look pretty little microphone I'm I'm see I'm spending money on you guys I don't I didn't need this I was fine with my trash ass set up but guess what I was getting [ __ ] on when all you guys were saying your face cam is ass um your your setup is ass dude come on
bro I I used to just trade on my phone you guys are trying to make me up my [ __ ] um but anyways today is part three of our liquidity series and then we will move from there over to our fair value Gap series and then over to our order Block series and then over to our equilibrium Series so we're we're starting to add the building blocks that we need to actually play straights and that's going to be part of uh what we're doing today pretty much just talking about um you know the full
overview of liquidity seeing how um how we can like use it to our advantage really because now right after the first day we understand what it is and why we want to use it right after the second day we we can see directly how it works on the charts right we can see okay a high gets taken out and then what happens right you can see orders get filled through break of structure through Market structure shift whatever you want to say and then price changes Direction so that's more of what we're going to be doing
today literally just spotting it out on the chart helping you guys be able to spot it easier um and then translate that into how you could potentially take a trade off of it again I don't want you guys to think this is a strategy it's not it's a piece that we can plug in to a strategy okay this is not end-all be-all okay so I mean literally just starting off I don't know if you guys can see this but pretty [ __ ] obvious we see boom leg down break of structure up closing all the
way up here price rallies okay it's again it's very very easy to see this on the chart it's when in action you know can you actually see it and can you react and actually take the trade correctly off of it um and that's what we're going to be you know trying to help you guys do uh let's get rid of my trade from this morning shmink get rid of this trade that I didn't take get rid of anything on here cool all right so oops what the [ __ ] all right so to start off
we will cover liquidity on the S P 500 just because it's pretty easy to spot on high time frames and it's it's really relatively easy to to show how you could potentially take a trade off of this and how it works okay so first of all right why do we want to use liquidity right just a little recap because that is where the market makers are able to fill their orders right because there's a bunch of people exiting the market and there's a bunch of people entering the market okay perfect there's a lot of money
getting transacted through the market versus when liquidity isn't getting swept or getting you know induced then you know it's kind of chippy choppy okay Tinky tacky okay they aren't able to completely you know change direction of the market all right so um what we're looking for right is highs and lows within the market right because that's where people are going to be entering long um and that's where people are going to be entering short and then that's also where people are going to be getting stopped out right so with that being said right we are
technically looking to label highs and lows as liquidity right in most importantly prominent highs and lows okay so you're probably saying well how do we know what's prominent well it varies from time frame to time frame on what is prominent or not but if you just look at the chart okay it's it's relatively easy to to just Mark out what Highs are prominent and what lows are prominent this is getting kind of messy I'm just going to work with what we put on right now so as we can see prominent high right here why because
it's the start of this big Trend okay we come down we come up and make a like double top pretty prominent High we come down make a lower low okay then we come up and take out this prominent High making a new prominent eye and then what does Market do rally even lower okay boom we can get rid of these lows okay then what does price price do we make a relatively prominent low right here and then a relatively prominent high right here you could can argue that these are prominent Highs but you know whatever
um relative prominent high right here relative prominent low right here obviously we push lower because this is a downtrend okay what is Zoo price Zoo come up takes out this high right what happens brake structure to the downside price Falls now we have this as a prominent High and this as a prominent low okay price comes down makes a lower low okay I would also consider this a prominent High because it broke structure on The Daily time frame um okay what happens price rallies up takes out the prominent High comes down a little bit okay
now we've pushed past that where is Price likely going to draw towards this high right we can think of liquidity essentially as a magnet for price that is where price is drawing to because that is where the market makers want to push price so they can get their orders filled make sense cool right so any form of liquidity right consider it a magnet for price right we're not considering it oh buy oh sell we're saying okay this is an area where orders could get filled for us to potentially take a trade it doesn't mean when
this High gets hit we press sell it doesn't mean when these lows get hit and press by right because if you did that you would lose way more than you win right we wait for these areas of liquidity to get hit and then we wait for confirmation through breaker structure through other confluences right that we'll talk about later in this okay we wait for those confluences to give us the confirmation that liquidity has been swept and that orders have been filled that makes sense right so when we see a liquidity sweep when we see these
prominent highs and lows get taken out it's safe to assume okay I'm now going to wait for confirmation that orders have been filled because then price is going to go in the opposite direction that makes sense cool okay and that's all liquidity is so how can we use this our to our advantage for entries well I just talked about it right we we wait for those those prices to get hit and then we see what price reacts off of it price doesn't react perfect no trade if price does react perfect act on it take a
trade right and then on the contrary how can we use liquidity for take profits right if if it's a magnet for Price above right if we if we think okay yeah highs will attract will attract price because that's what it wants to seek out in order to go lower if we're saying oh yeah this is a this is a relative bear market right now right if we're saying oh yeah this is a relatively bear Market laughs I think price will go lower right then we're waiting for highs to get taken out but then right when
let's say we do find a trade let's say we're able to find an entry whatever here where are we where are we going to Target right if we think price is going to look go lower if liquidity is a magnet then it's probably going to start seeking out these lows why because just like how market makers need you guys to be entering and exiting for them to enter orders it's the same thing with exiting right because if they exit if they exit at a random point at in the chart right without a low or a
high being like an area where they where they take orders out right if they were to just you know exit right now right price would probably drop price will move in the other direction they still need people entering and exiting the market just like they do to fill their orders to keep to to sell their orders right to exit their orders to exit their position right without price just making a big move after those positions get closed out does that make sense because same thing with them wanting to go go short at the highs they
also want to you know close and right if they're if they're close um if they're going short they're going to be closing their position at Lowe's why because there's going to be people going short there's also people going to be exiting wow been here for too long already sorry I'm sorry um for the language shift um I was just talking to this lady on the phone in Spanish so my Spanish is not nearly as good as what it used to be but it gets me around here um so does that make sense right so if
we're looking if we're looking for shorts we're using liquidity to be this the peak of our interest right we take out a high we get a breaker structure to the downside perfect and then like any other Confluence perfect we can go short okay and then where are we targeting the lows right because that's where they can exit their position just like how they were able to fill their position at the high they have to exit their position at the lows make sense cool cool okay so let's just go through more examples of this just working
and we can even go over the examples right here that we already marked out right so we had a prominent high right here as we can see price pushes up where do we get the break of structure if you guys remember that portion boom we get a break of structure right here this was the most recent low we got a closure below perfect you can either enter off that enter off of you know some sort of off of some some sort of fair value gap on the four hour Within These candles right we see that
get filled chop chop chop break down okay whatever whatever you want right we get a liquidity sweep then a break of structure those are pretty standard okay then where do we target next previous prominent lows price draws to it just like a [ __ ] magnet moving forward okay where where is our next previous prominent lows that get made prior to the braking structure to the upside on The Daily right here where's that where's the prominent eye that gets made on The Daily right here okay we see price move up past it got one pretty
far past it but then we get a breaker structure after another form of liquidity gets swept right we have highs right here highs right here right we push past this one don't give up much of a reaction we push pass take out this one we do get a reaction break of structure to the downside you know whether you find uh an imbalance within here this daily candle filled this fair value Gap within here whatever you want okay it filled orders okay we see the confirmation of it with the break of structure where does price go
to where does it get magnetized to previous prominent low now we have previous prominent lows right here prominent highs all the way up here and some other prominent highs in between but we've already pushed past them right we can see that right we had this prominent High gets taken out we failed to reach this low we're just chopping up um and now we're pushing for this High okay so you could argue that this is a prominent low and this is a prominent low and none of these highs have caused a reaction yet so now this
is the one that we're looking for cool does that make sense perfect let's show it now let's show this happening on a smaller time frame not just the daily because this happens on literally every single time frame and it can be used to your advantage just like this okay we're looking at the four hour on GBP USD what's the first thing you see big rally up and then a big dump I wonder why that happened okay we have boom highs right here okay you're probably saying it never got hit exactly look on the one hour
sweep when's our break boom with this candle right here wait for some type of retracement on up right we get a break of structure with this candle boom push back up hits this order block capitulates taking out prominent low filling this imbalance filling this imbalance so many areas for you to take profit here but we're just talking about liquidity right now there will be a whole section on how to take profits later okay does that make sense same thing here right boom we have highs right here barely gets Wicked price okay where's our break of
structure we get a break right here right we get a we have a low right here down candle up candle this is our low most recent low that's you know applied to a break of structure as you can see none of these lows got broken this low gets broken you can scale into the five minute boom imbalance gets filled right within here find some sort of confirmation boom go short where there's lows right here there's a full freaking imbalance within here all of that right all that good stuff and and we'll get into that later
I'm literally just trying to show you guys how liquidity works and how you can use the draw on liquidity for taking profits and then also for entering positions same thing with gold right here Lowe's boom we see boom price drives in boom quick regain up closure above right here yes we get some dip down into this imbalance this is probably where you would have wanted to get your orders filled okay find some sort of Entry within here and we'll go over that where does price draw back up to Boom previous highs once it once those
previous highs get hit boom orders liquidated orders filled now we're chopping simple simple boys very very simple um and it's and it gets a lot easier when when you start being able to just like spot this like at the back of your hand like you you should be able to pull up a chart and just be like oh that's a liquidity sleep yep that's a liquidity sweep liquidity sweep liquidity sweep right you should be able to see these like like none other sweep rally what's this right here oh sweep rally you know oh what's this
right here sweep drop sweep retracement you know it's it's really funny how easy how easy it is and how comfortable you get starting to see this but it's one thing you know being able to see it oh sweet fall what's this oh sweep rally you can't tell me that this [ __ ] doesn't work right you really can't you you cannot tell me that this [ __ ] does not work and it happens on every single time frame right sweep rally like I see this [ __ ] happen on on the 15 minute I see
this [ __ ] happen on the one minute oh damn that's crazy there's a low sweep rally oh damn that's crazy these highs sweep drop it it's how these markets move it's how orders get get filled it's how markets literally flow damn that's a cool low sweep rally I'll take that low I'll fill my orders you know that's all this is Okay so again that was just me trying to show you guys like examples of all this going down um and hopefully you guys have a better idea of liquidity again now homework isn't just seeing
the liquidity sweep it's not saying there it is and just marking it on several different time frames and now I want you to try and pair it with something try and find five liquidity sweeps on whatever pair you use I don't care what time frame find five liquidity sweeps okay and then see how you could have you know gained more confidence for a trade you see the sweep and then look into the price action that follows okay there was a break of structure that's a Confluence for me to trade okay and then after the break
of structure it filled an imbalance and reacted off of it that's where I'm entering okay we got a sweep of liquidity a break of structure a hidden order block reacted boom that's where I'm entering simple as that that [ __ ] easy it's not [ __ ] easy okay and that's really what our strategy is going to get into but you guys don't necessarily completely understand some of the some of the logistical things um that we're going to cover but that's it for now okay that is liquidity explained hopefully you guys have a good grasp
on this if you don't re-watch the three videos that we've made on it and then also go back and re-watch my how to spot liquidity sweeps just like very first you know video that I put um that I put up like one of my first videos on YouTube okay so if you're having trouble with this it's okay there's a reason why I split this up into three parts okay understand why we want to use it and understand where it lies within the market and then understand that liquidity it's fine to Mark out every single high
and low but not every single high and low will be used as liquidity to fill orders and that's why we wait for a Confluence that's why we wait for breaker structure that's why we wait for a fair value Gap then a reaction that's why we wait for an order block then a reaction that's why we wait for all that stuff does that make sense cool you guys know your homework Find find five examples of a liquidity sweep trade setup or a liquidity suite and Confluence for why it went in the direction it did get that
done take some notes and then let's get after it all right I'll see you boys tomorrow for some and discipline
