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Advanced Liquidity Concepts (Path to Profitability)

Explore advanced liquidity concepts in trading, focusing on session highs/lows and market maker behavior across Asia, London, and New York sessions.

Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.

Generated from the transcript and can be wrong — check the timestamp.

Key Takeaways

  • Liquidity lies primarily at session highs and lows, which are key levels for market manipulation.
  • Different market sessions have distinct market makers who influence price movement to fill their orders.
  • Traders can improve their edge by focusing on these high probability liquidity draws rather than random highs/lows.
  • Session transitions are critical times when stop losses are triggered and liquidity is exploited.
  • Understanding the interplay between Asian, London, and New York sessions is essential for profitable trading.

What the video covers

  • The video explains advanced liquidity concepts and their importance in identifying high probability trading opportunities.
  • It breaks down the 24-hour trading day into three main sessions: Asia, London, and New York, highlighting their unique market behaviors.
  • Each session is dominated by different market makers who manipulate price to fill orders and stop out traders from previous sessions.
  • Session highs and lows are critical liquidity points where market makers target to execute their strategies.
  • The London session often manipulates Asian session highs and lows to stop out traders and fill orders before pushing price.
  • New York session then acts similarly, targeting London session highs and lows to maximize profits.
  • Understanding these session dynamics helps traders anticipate market moves and identify stronger liquidity draws.
  • The video uses colorful and informal language to explain complex market interactions and order flow.
  • It emphasizes the importance of using session highs and lows for entries and exits in trading strategies.
  • Additional topics like high impact news and risk management are mentioned as part of the broader series.

Answers

Questions about this video

What are the main sessions in a 24-hour trading day?

The main sessions are the Asian session, London session, and New York session, each dominated by different market participants influencing price.

Why are session highs and lows important in trading?

Session highs and lows represent key liquidity points where market makers place orders and manipulate price, making them high probability levels for reversals or breakouts.

How do market makers manipulate price during session transitions?

Market makers push price to trigger stop losses from traders in the previous session, fill their own orders at these liquidity points, and then move price in their desired direction.

Full Transcript — Download SRT & Markdown

00:09
Speaker A
Somebody clip this. Somebody clip this into an edit. Somebody clip this into a hard-ass edit of me being tough using that sound from TikTok. Ready?
00:24
Speaker A
[screaming] And then boom. KOIGSEG at 23. Ferrari at 22. Widebody Mansory Colon at 22 years old.
00:48
Speaker A
Gravis GLE 21 years old. Oh, [screaming] welcome to Exploited Liquidity Advanced Concepts. Cue up the edits. Cue them up, boys.
01:03
Speaker A
Cue them up. Let's jump straight into this. We learned about liquidity [clears throat] yesterday.
01:10
Speaker A
Let's learn more about advanced liquidity concepts again today. Okay. So there's one, two, three, four, five, six, seven forms of advanced draws on liquidity, okay? Or just overall better draws on liquidity that we can look to target. So as we
01:34
Speaker A
know, little refresher, what did we learn yesterday? Where does liquidity lie? Above highs, below lows? I'm going to suck on your toes. Now, in today's episode, we're going to talk about just higher probability draws on liquidity that are more beneficial to us than
01:53
Speaker A
not. That was nice to be able to help us, okay, identify the stronger draws on liquidity than just like, oh, this is a high, this is a low, price could potentially move off of this. Okay, so the first one is going to be session
02:11
Speaker A
highs and session lows. Okay, so how do we identify these or first of all, what are session highs and session lows?
02:19
Speaker A
So if you guys are unfamiliar with this, we're going to get into this a little bit more when we talk about time in the market, but specifically today we're going to be talking about sessions.
02:29
Speaker A
Okay, there's three sessions throughout the 24-hour trading day. There is Asia session, there is London session, and there's New York session. And then within New York session, there's AM session and PM session. Today, we're just going to focus on the three
02:44
Speaker A
sessions and why those sessions are important. So, something that I want you guys to think about for every single session, okay, we have Asian session, okay? All the Ching Chongs, they're getting in there and they're like, okay, when Asia session opens, they got
03:01
Speaker A
their freaking, they're it's Japanese candlesticks, right? They're [ __ ] turned up ramen noodle, all that. Sorry if that was disrespectful. You guys get the point. But when Asian session opens, ALL THE ASIANS, BOOM, it's their market.
03:15
Speaker A
They're ready to run with it. Okay? So, all of the Asians are moving the market at that point in time. And then boom, Asian session closes. Then all the London, I'm a London British chat, mate.
03:27
Speaker A
And I'm going to beat you off. I'm going to [ __ ] I'm going to beat off you like a wanker, mate. I'm going to beat you. And I'm from Brixton, okay?
03:38
Speaker A
All the Brixton bullies. They get into the market and they're like, "Man, [ __ ] the Ching Chang Chongs, okay? We want to take all of their orders. [ __ ] them. And we want to move the market where we want
03:51
Speaker A
to go." So Ching Changs, they get into the market. They move the market where they want to go. Brixton bullies. They get into the market. Their money comes into the market, moves the market where they want to go. Then boom, bald eagle
04:03
Speaker A
screech USA. New York session opens. All the big fat guys on Wall Street eating McDonald's. Boom. They're pressing buttons. Their money comes into the market. Why is this important? Why is it important for us to know about Genghask
04:17
Speaker A
Con, Central C, and the fat-ass Americans? Why is this important? Because it's every single time there's new money from different markets coming into the market and moving it. Okay, so we talked about the market makers yesterday. We have Asian persuasion
04:34
Speaker A
market makers, we have Central C market makers, and we have obesity market makers. Okay, each one of those market makers, they have their own session where their money is getting put into the market and they are going to
04:47
Speaker A
manipulate the market in the way that they want to. Now again, why is this important? What did we learn yesterday?
04:54
Speaker A
This is let's say this is Asian session. Okay, we'll make this Asian session. Boom. Asian session does this bow. Boom. This is Asian session. We'll make the line yellow just so you guys understand it a little bit better
05:12
Speaker A
for no reason. Okay. Um, so this is Asian session. Bing Bang and Ching Chang, they pushed the market up to these highs. Okay, Sing Long and Ching Chong push the market down to these lows.
05:30
Speaker A
Okay, then boom, Central C comes into the market. We'll make him blue. Oops. Central C comes into the market. What are the London traders going to try and do to the Asian session traders? Because right now Asia, the Asian session
05:54
Speaker A
traders, they're controlling the market. They're moving the market where they want to go. So when the bricks and bullies get into the market, what do they have to do to all the Asia, Asia session traders in order to move the
06:07
Speaker A
market in the way that they want to move? They need to stop out the Asian session traders. They need to manipulate whatever trend or whatever highs and lows they need to take out draws and liquidity from what was formed during
06:18
Speaker A
Asian session to be able to move the market where they want to go. So coming into London session, if Central C wants the market to move higher, what is Central C, big big C, going to do to
06:31
Speaker A
the market? He's going to push price underneath the Asia session lows. Why? Because that's probably where there's going to be people that are willing to go short.
06:42
Speaker A
There's people that are getting stopped out of their buy positions right there. Boom. Central C is going to stop out the Asia session traders underneath Asia session low and then they are going to go up and target Asia session highs
06:54
Speaker A
because the London traders, they don't, they want to manipulate everything that happened during Asia session. Okay, they want to be able to fill their orders down here underneath the Asian session lows so they can stop them out
07:05
Speaker A
of their buy orders, right? And then also get people into sell orders.
07:09
Speaker A
And then what do they do following that? Once they're able to fill all their buy orders underneath here, they're going to push price up to be able to take out, boom, fulfill all of their buy orders, also stop out all the people that were going
07:22
Speaker A
sell that were selling on this move down. Again, remember there's going to be two times the amount of buy orders above highs. And when Central C pushes the market above these highs, what are they able to do with the orders that
07:35
Speaker A
they filled down here? They're able to liquidate those orders because again they're buying down here and then they're selling up here. What are they selling into? They're selling into the Asian persuasion Chinatown traders' stop losses up here. Boom. Game is game. You
07:52
Speaker A
just got cooked by Central C. Now we got obesity coming into the market now. Obesity time. Bang. New York session opens. Okay, we'll make obesity, we'll make obesity red. Boom. Now we have London session lows down here.
08:15
Speaker A
London session highs right here. When obesity comes into the market, they're thinking, "Man, I rock with King Vaughn.
08:21
Speaker A
I rock with Pop Smoke, Travis Scott. [ __ ] Central C." Okay. Obesity comes into the market and they're like, "Man, I want to stop this dude out. I don't like their orders. I want to fill my orders and I want to make price move
08:35
Speaker A
where I want to go. Okay. So, what are they going to do? They're going to push price above London session highs and then they're going to fill their sell orders to push price down, boom, to London session lows because they're going to
08:50
Speaker A
fill a bunch of sell orders up here while all the London traders get stopped out and enter into buy positions and then boom New York gets to buy back their sell positions for a lower price and then make money on their short
09:02
Speaker A
positions. You're probably saying, "TJR, that was a whole bunch of mumbo jumbo." You're right. It was. But what did I just show you? I just showed you where significant draws and liquidity lie within the market.
09:19
Speaker A
Woo! Central C, Chinatown, and obesity. How does that play into trading? It's everything.
09:30
Speaker A
Not only is your homework going to be to go get ramen noodle from Panda Express while listening to Central C, you also need to get a big Big Big Mac. Okay, that's part of the homework. Remember it. Okay.
09:44
Speaker A
Asia session highs, Asia session lows, London session highs, London session highs, London session lows, New York highs, New York lows. All of these are significant draws on liquidity that when new sessions start and end, the new money that's coming
10:01
Speaker A
into the market is going to want to target these session highs and these session lows because there's a significant amount of resting orders above and below them.
10:12
Speaker A
Okay, let me copy this. Put this here. Okay, so let's show it on the chart. You're probably saying, "I don't get it." Shut up, Timmy. We'll show it to you. Okay, I have this nice little indicator. Um, it does the [ __ ] for me. I'll put a I'll
10:45
Speaker A
put a link to it in the description, but Asia session high, Asia session low, London session high, London session low, New York high, New York low, and then the session start line indicator is with red. Just to make this easy for you
11:00
Speaker A
guys, I'm going to remove all of these lines and we're only going to put the session starts on. Okay, just so we can actively show this happening in real time.
11:19
Speaker A
So, first of all, what are the number values? Again, remember when we set up, this was something that is super important. Remember when we set up our trading view, we need to make sure that we are on Eastern time. Okay, we need to
11:34
Speaker A
make sure that we're on New York time. All right, so boom, we're on New York time. What are the session times? Asia session starts at 1,800.
11:44
Speaker A
London session starts at 3:00 a.m. New York sess New York session starts at 9:30 and New York premarket starts at 8:30.
11:58
Speaker A
So, we can kind of group both of these together. Let's get in here and let's look at this.
12:07
Speaker A
Okay. Where is London session high? Well, from 3 to 8:30, where's the highest point that we got to? Boom. Right here.
12:23
Speaker A
Where's Asian session high? From 1,800 to three. The highest point that we got to was up here. Where is Asian session low?
12:33
Speaker A
From 1,800 to three. Where is the lowest point that we got to? Right here. Where is London session low? From 3 to 8:30.
12:41
Speaker A
Where's the lowest point we got to? Right here. NOTICE THE MANIPULATION FROM CENTRAL C.
12:51
Speaker A
Asia session high, Asia session, Asia session low. Boom. Right when London session opens, what does CENTRAL C SAY? HE SAYS, "FUCK YOU AND YOUR [ __ ] YOU AND YOUR [ __ ] LOWS MATE." What's a Central C song? I got a bando
13:09
Speaker A
in the trap, mate. Boom. Moves and manipulate these lows to be able to fill Central C's buy orders right here.
13:23
Speaker A
Then Central C SAYS, "THANKS FOR THE LIQUIDITY." AND THEN BANG, WHAT DO WE GO UP AND DO?
13:32
Speaker A
TAKE OUT ASIA SESSION HIGHS. SHOUT OUT CENTRAL C. Manipulate the ASIA SESSION LOWS. BANG.
13:42
Speaker A
RIGHT UP INTO ASIA SESSION HIGHS. AND THEN BOOM. RIGHT WHEN WE TAKE OUT THE ASIA session highs, WHO COMES INTO THE MARKET? BIG DADDY [clears throat] OBESITY.
13:53
Speaker A
OBESITY COMES INTO THE MARKET AND SAYS, "HEY, CENTRAL C. HEY ASIANS. [ __ ] [screaming] YOU GUYS." BOOM. THANKS FOR THE LIQUIDITY. I'M TAKING OUT BOTH OF YOUR GUYS' HIGHS.
14:10
Speaker A
While all of you guys are going long and getting stopped out of your orders, I'm pressing sell. AND THEN WHAT DOES THE BIG FATTY GET TO DO? TARGET CENTRAL SEES LOWS. BANG. [screaming] And that is how money shifts from
14:28
Speaker A
session to session. Okay? It doesn't happen every single day. And matter of fact, I just chose this day at random.
14:35
Speaker A
This was beautiful. This was honestly beautiful. This was literally New Year's Eve when the market's actually not printing that well, but this was gorgeous. Okay, let's do another example to show you guys this happening. Now, again, doesn't have to happen every single session,
14:52
Speaker A
okay? But these are very important highs and lows in the market. And again, what do we know about the highs and lows within the market? What did we talk about yesterday? It is just giving the market the opportunity to potentially
15:07
Speaker A
reverse. So just because we push up above central seas highs doesn't mean that the market needs to reverse off of it. The market has the opportunity to.
15:17
Speaker A
Again, we haven't gotten into the other confluences to be able to spot confirmation of these opportunities actually being taken for us to be able to take trades off of them. We will eventually, okay? But we need to understand these advanced liquidity
15:32
Speaker A
concepts. Specifically, understanding the high probability highs and lows that give us more opportunity than just, hey, this is a random high on on the chart.
15:42
Speaker A
This is a random low on the chart. I'm going to mark it out and hope for the best. Okay, very important that we understand that. Let's do another example. Okay, let's see what's this 1,800. This is Asian persuasion high.
15:57
Speaker A
Boom. Three. This is Central C when he comes into the market. Boom. This is 8:30. This is New York pre-market. And then boom, this is 9:30.
16:07
Speaker A
This is New York market open. Where is Asian persuasion high? Right here. Where's the lowest point that Asian persuasion gets? Right here.
16:18
Speaker A
Oh my days. Look at what Central C. Look at Central C. Look at Central C. HE DOES NOT LIKE THE A. OKAY. NO, I'm not going to say that. I'm not going to say that.
16:28
Speaker A
I'm [clears throat] not gonna say that. So, I like Central C. Central Sea is cool. Um, but anyways, are are you seeing it? Are you seeing it? Okay. Asian persuasion high, Asian persuasion low, Central Sea low, Central Sea high or no, this is Central
16:48
Speaker A
Sea High. Boom. Asian high. Asian low. Central Sea comes into the market. Boom. [ __ ] your lows. What does that give Central C the opportunity to do? Fill his buy orders.
17:03
Speaker A
Once those buy orders are filled, where is he going to push the market? He's going to want to push the market to be able to exit these buy orders. Where is he going to be able to exit his buy
17:12
Speaker A
orders and be able to sell? Where there's resting buy orders for him to fill his sell positions because he bought low and he's looking to sell high. Where are their buy orders? Above Asian Persuasion highs. There's sell orders underneath Asian Persuasion lows.
17:26
Speaker A
Central C is going to buy here because there's a lot of sell orders. So, he can go in the opposite direction.
17:32
Speaker A
And then where where is he looking to offload those orders at? Above Asian Persuasion highs because he knows that there there's there's going to be a lot of people going long there. So, he buys low, sells high, fills his buy orders,
17:43
Speaker A
and then where does he immediately target? Boom. Asian persuasion highs right there. Central C enter, Central C exit. And then, right when that happens, what do we notice? Boom. New York pre-market opens.
17:57
Speaker A
What does New York premarket do? Says, "Thank you very much for Central Seas highs. Thank you very much, Asian persuasion highs.
18:07
Speaker A
Time to manipulate you fools." Boom. What does that give New York traders the opportunity to do? The obese guys, they can go short above these highs. Why? Because there's a whole bunch of people going long. So, they can
18:20
Speaker A
take the reversal of that position. And then, where do they go? They say boom.
18:24
Speaker A
Thank you, Central C, for the lows that you made. ARE YOU NOT GETTING HYPED UP [screaming] ABOUT THIS [ __ ] IT'S DAY What day is it on um this path to profitability? I DON'T KNOW, BUT IT'S DAY something and you guys are learning
18:47
Speaker A
a lot. Okay, you guys seeing this? This is manipulation. So, what do we need to remember?
19:00
Speaker A
Important highs and lows within the market. Asia session highs are important. Why? Because when new money comes into the market, what is it going to want to do? When central C comes into the market, what is he going to want to
19:10
Speaker A
do? He's going to want to manipulate those highs and then push price in the other direction. Why are Asian session lows important? Because when Central C comes into the market, he has the opportunity to push underneath those Asia session lows to fill his buy
19:24
Speaker A
orders. When the big fat obese people come into the market, what are they looking at? They're saying Central C, your highs and your lows, they're mine. Okay, what does that give the obese people the opportunity to do?
19:39
Speaker A
push price, manipulate price above central C's highs and then to be able to target central C's lows or the other direction the obese people can come into the market market manipulate central C's lows and then target central C's highs all in all
19:56
Speaker A
session highs and lows are very important highs and lows within the market so again remember these numbers 1,800 Asian persuasion to three 18800 to 3 is Asia session. 3 to 8:30 London session. 8:30 back to 1800 is New York session.
20:23
Speaker A
So this is Asian. Boom. London. Boom. New York. Boom. And that encapsulates a full day of trading.
20:33
Speaker A
All right. pre so session highs and lows that's important. Next draws and liquidity that are important previous day highs and previous day lows. Now this is the same exact thing but just all of those sessions encapsulated into one. Okay. So
20:56
Speaker A
instead of looking at, okay, Asian persuasion highs, Asian persuasion lows, Central Ca highs, Central Ca lows, fat person's highs, fat person lows, we're looking at all of those sessions combined, finding the highest point and the lowest point of all three
21:12
Speaker A
of those sessions combined. And that's going to give us our daily highs and our daily lows. These are important draws on liquidity as well. Okay, so if we go back Let's find a good example of this.
21:41
Speaker A
This is a good one. The most recent day. Does ES have it better? No.
21:56
Speaker A
Wait. Yeah. Uh uh. This is like okay. It's decent, but I mean, we can still use it as an example.
22:12
Speaker A
On the daily chart, we have boom, previous day high, previous day low. Okay, this was the previous day high.
22:23
Speaker A
This was the previous day low. Right, we can just toss on the daily chart. Boom.
22:28
Speaker A
New day opens for New York session at 8:30. Okay, that's pre-market. And then 9:30 is market open.
22:41
Speaker A
What do we see price do? Price comes up. We manipulate the previous day high.
22:45
Speaker A
Okay, during London session, we were over it for a little bit, but then again, this is like a mix of both previous day high getting manipulated then and Central C Central's highs getting manipulated. Okay, so London session opens, we come up above previous
23:00
Speaker A
day high. Not really much motion. Central C couldn't really pull anything off above these highs, but boom, big fat guys, they come into the market, motion.
23:09
Speaker A
Okay, they come into the market. Pre-market starts. We manipulate above Central C's highs right here. Okay, and back above previous day highs right here. And then what do we do? Boom.
23:22
Speaker A
Where do we end up targeting? Not only do we end up targeting Central Seas lows right here, we also end up targeting Asian Persuasion lows right here. And then we also end up targeting previous day lows right here.
23:38
Speaker A
Okay. Again, this doesn't it this isn't just 1 million% foolproof. I'm going to press sell every time we push above a previous day high and I'm going to press buy every time we push underneath a previous day low. That's not the case. But what
23:59
Speaker A
can it tell us? It gives us a higher probability high and low for us to look at in the market that price is going to look to target because again what lies above highs and lows within the market
24:13
Speaker A
resting orders. That is how the market moves. If the market wants to move lower or if the literally if the market wants to move lower where does it have to go first? It needs to manipulate a high.
24:24
Speaker A
And then once we manipulate highs in the market to push the market lower, where is it going to offload all of these orders that were just filled? Back underneath lows. So that's through boom, London session low, Asia session low,
24:38
Speaker A
previous day low. And we'll we'll get into this when we talk about how to look for take profits.
24:45
Speaker A
Okay? But this is very first steps of understanding significant draws on liquidity in the market. So we have session highs, session lows. Check, check, check, check, check. Previous day highs and previous day lows. Check, check, check, check, check. Next, we
25:06
Speaker A
have low resistance liquidity. So low resistance highs and low resistance lows. You're probably like, "What does that mean?
25:16
Speaker A
Well, I'm going to tell you, buddy. I'm going to tell you. Okay. Honestly, I think like the people that say this, I mean, I just put it because it sounds cool. Realistically, bros, I'm going to keep this [ __ ] above 50 with
25:30
Speaker A
you. I'm going to explain this to you guys as if you were me in high school.
25:36
Speaker A
All these other freaking nerds on YouTube, bro, they're like low resistance, liquidity, and current market structure shifts. You guys are freaking nerds. shut up and make the [ __ ] understandable. Low resistance liquidity is just stacked up highs and lows or you
25:55
Speaker A
we can even call it trend line liquidity or just trend liquidity. Okay, so what do what do we know about trends? They make higher highs and higher lows, right? So boom, this is our uptrend.
26:08
Speaker A
Beautiful. We have a low right here, a low right here, low right here, low right here. So when we eventually decide to manipulate a high to reverse the market to be able to fill sell orders, we have all of these trending lows that
26:26
Speaker A
are stacked up. What do we know that lies underneath lows? Liquidity. So, if we fill a massive amount of sell orders up here, what are we probably going to want to target in order to offload the ma the sell orders in order to turn
26:44
Speaker A
this into a profit? We need to target lows because what's underneath lows? People that are willing to go short. And if we're pressing short up here, we need we need people to be looking to short while we're buying back our positions
26:57
Speaker A
for a lower cost, making us a profit. Oops. So that's why low resistance draws on liquidity are very important. It's when we have a series of lows or highs that are stacked up. If we go up and we
27:13
Speaker A
manipulate this high and then we start getting whatever our entry confluences, we can look to take out all of these lows because all of these lows are yet to be manipulated. And a good analogy that I like to give when we're looking
27:27
Speaker A
at low resistance liquidity is cookies in the cookie jar. Okay, if I'm the cookie monster and I'm like, I like a cookie. Okay, and we manipulate these highs and underneath these lows is a cookie.
27:46
Speaker A
And I fill cell orders up here, I come down. I want a cookie. Okay, I want to be able to target these lows. Why?
27:58
Speaker A
Because I'm going to be able to buy back my positions for a lower price and make me a profit. But why would I stop there when there's ANOTHER COOKIE RIGHT HERE when there's even more sell positions right here? It's not going to stop me. I
28:13
Speaker A
want more cookie. Okay? Cuz I want more profit. Remember, the market makers are greedy. They want as much money as possible. And why would we stop there?
28:22
Speaker A
There's another cookie. WE'RE GOING TO KEEP GOING. WHY WOULD WE STOP THERE? THERE'S ONE MORE [screaming] COOKIE. I WANT COOKIE.
28:33
Speaker A
OKAY, we're the [ __ ] cookie monster. Same thing when we're reversing from a downtrend. If we're in a downtrend, we have a high high b and then boom, we finally start reversing.
28:54
Speaker A
I can hear my watch ticking. One two three four five six seven. Okay. Sorry.
29:07
Speaker A
I [clears throat] ended on six, seven. Period. Okay. Lock in. Let's lock in. Okay. When we're in a downtrend, boom, let's say whatever. Price ends up manipulating these lows. There's cookie above this high. But why would we stop
29:20
Speaker A
at this high? BECAUSE THERE'S ANOTHER COOKIE. AND THEN there's another cookie. And then there's another cookie. And then there's another cookie. And then there's another cookie. We are going to want to take out all of these highs.
29:29
Speaker A
Why? Because there's a whole bunch of resting orders that are lying above these highs that we can just blitz through. Absolutely blitz through to be able to take out. So we can use, and you're probably saying, "How is this useful for us?" Well, it's
29:45
Speaker A
useful in both ways. Again, when we're traders, we're switch hitters. We can go both ways, ma. We can we can do both.
29:54
Speaker A
All right. We can go both ways. We can either, let's say we're at a point in time where we're looking for a trade and we manipulate these lows and we see an entry entry confluences to press to press buy right here. Awesome. We can
30:07
Speaker A
use all of these highs as exit confluences as take profit points because we know there's a whole bunch of resting orders above these highs. So, we know that pressing buy right here is a pretty good option, especially if we
30:22
Speaker A
have entry confluences. Why? Because there's a whole bunch of orders that are going to want to get filled from the market makers on this move up.
30:32
Speaker A
Now, what about on the contrary? Okay, if we're looking to enter into a position, okay, if we're at this point in time in the market, uh, let me see if I can get an eraser. Is that even possible? No.
30:58
Speaker A
Let's say we're looking to enter into the market and the market just came down and took out all of these draws on liquidity.
31:06
Speaker A
Well, awesome. We just took out one cookie, two cookie, three cookie, four cookie. That's a whole bunch of sell orders that have just been taken out from the market. What does that give us the ability to do? Fill a massive amount
31:20
Speaker A
of buy orders to push price in the opposite direction. So, we can use this not only if we're looking to enter into a sell position up here as targets where we can target all of these cookies. But also, we can
31:36
Speaker A
use it as again, let's say central C during his session, he already said, "Fuck those damn cookies. I want them." Fat obese guy says, "Bar, I wanted those cookies, but all good. I'm still going to use those cookies to my advantage
31:52
Speaker A
because you ate all the cookies over here. So, I know I'm going to be able to press buy because there's no more sell orders in the market or all of these sell orders just got executed. Now, I can fill my massive amount of buy orders
32:04
Speaker A
and then say, "Fuck you, Central C. I'm going to take out your highs." So, we can look at it in both ways. Hit it both ways.
32:17
Speaker A
Uhoh. No. No. I got rid of my Yes, we're back. Okay, so that's the importance of low resistance liquidity.
32:39
Speaker A
Another So again, session highs and lows, significant draws in liquidity. Previous day highs and lows, significant draws in liquidity. Now again, YOU'RE PROBABLY SAYING, "I WANT TO TAKE A TRADE." SHUT UP. SHUT UP, DUDE. WE'RE NOT EVEN THERE YET. I know you want to
32:55
Speaker A
trade. I know you want to make monies. We're not there yet. Digest the information. Write it down. Take notes.
33:01
Speaker A
And we are going to get there. Okay? We're going to get there. It this takes time.
33:07
Speaker A
Session highs and lows very important, very high probability draws on liquidity where there could be potentially reversals at previous day highs and lows, same thing. high probability highs and lows where we can see a reversal at low resistance draws on liquidity
33:22
Speaker A
stacked up highs and lows that can either be serve and but all of these can serve as entry points and exit points.
33:30
Speaker A
So again, if we like we saw during the session session, if New York session comes up, sweeps out Central C's highs, what's a good exit point? Central C's lows, right? Price is going to want to take out these highs.
33:44
Speaker A
And then what's a good exit point? Boom. Session lows. Okay, so these are not only good entry and entry points, they're also good exit points. So session highs and lows, very important draws on liquidity. Previous day highs and lows, very important draws on
33:57
Speaker A
liquidity. low resistance or trend line trend trending highs and lows very important draws on liquidity. Next relative equal highs and lows. So this is significant draws in liquidity just like just like with low resistance draws in liquidity where we have stacked up
34:19
Speaker A
highs and lows. This is when we have pretty much like dead equal highs and lows. So we see a high right here and then we see boom. Oh, wait. Let me show you an example just so you know I'm not capping. Let me
34:33
Speaker A
show you example of low resistance draws and liquidity getting tak taken out. And again, remember guys, the awesome thing about these confluences in the way that we trade, it happens on every single time frame. So you guys will find
34:45
Speaker A
examples of this happening everywhere. Okay, so let's show a good example of low resistance draws and liquidity getting just absolutely torched. Okay, we have boom, one low, boom, two low, boom, three low, boom, four low, boom, five low.
35:09
Speaker A
Okay. And we can even show this even better. What is this? This is New York market open. What are these? These are Central C's highs.
35:29
Speaker A
Okay. Market opens. Boom. We manipulate Central C's highs and Asia session highs. And then what do we have? We have a whole bunch of stacked up cookies. We have one low, two low, three low, four low, five low. We end up dumping and
35:44
Speaker A
taking out all of them. Stacked up highs and lows. So in this case this would be using low resistance draws and liquidity as exit points and session draws and liquidity as an entry point. We just use two of our high highly probability
36:00
Speaker A
[clears throat] we just use two of our high probability highs and lows to our advantage. One for entries, two for exits. We use session highs and lows or session highs as our entry point and then low resistance draws and liquidity
36:14
Speaker A
as our exit point. Exit here. Exit here. Exit here. Exit here. Exit here. Let's show another example in the opposite direction.
36:33
Speaker A
This is perfect. What do we have? Hi. What else do we have? Another high. What else do we have? Another high. What else do we have? Another high.
36:53
Speaker A
So, we have what is this? A downtrend. High. Lower high. Lower high. Lower high.
37:00
Speaker A
Okay, we're in a downtrend. We start reversing. We take out this high. This high, this high, this high. And now we can use low resistance draws and liquidity in this example for an entry.
37:15
Speaker A
We came up, took out all of these highs. What is that going to give the market the opportunity to do? Because there's buy orders sitting above every single one of these highs.
37:24
Speaker A
It's going to give the market the opportunity to fill orders and then cause the market to go down.
37:31
Speaker A
And then what do we notice within this? Once we fill the sell orders, what are we looking to target? We have a low. We have a low. we have a low.
37:43
Speaker A
So once we go up and take out all of those low resistance highs, we sweep them and then where do we go and target? All of these low resistance lows.
37:53
Speaker A
Simple simple simple simple simple. Okay. Next is relative equal highs and lows. Okay. Same thing as low resistance draws and liquidity essentially, but it's just when we have two highs that are either equal to each other, so dead equal in
38:12
Speaker A
price, so the same exact price or just like right underneath it. Okay, relative equal highs and lows like and equal highs and lows. It's pretty much the same thing as low resistance draws and liquidity. Why? Because it's like,
38:25
Speaker A
hey, what do we have above these highs? Buy orders, buy orders. Two cookies better than one, right? And then even better if it's equal highs and lows, right? So if we have the same exact price for both of these highs, there's
38:38
Speaker A
four times the amount of buy orders. Why? Because there's people that are going to get stopped out from their sells on this move down. Okay? There's people that are looking to go long above this high. There's people that are going
38:49
Speaker A
to get stopped out from their sells on this move down. And then there's people looking to go long above this high. So there's two sets of buy orders above this high. Two sets of buy orders above this high. Boom. Whole bunch of cookies.
38:58
Speaker A
Pow. Okay, same exact situation. Same thing with the lows. Okay, it's just when we have two equally priced lows or two lows that are very very close in price. Okay, so let's show an example of this.
39:25
Speaker A
Let's see our example. [clears throat] I shouldn't have chose the hourly time frame. Let me see if there uh 4 hour might be a little bit more difficult.
39:44
Speaker A
Let's see. Let's see here. It's going to be easier on lower time frames. Let's just get on the 15 minute.
40:12
Speaker A
Close but want to find an example of equal highs and equal lows. Where are you?
40:34
Speaker A
Come on, bro. I want to find a good example. Like, I'm seeing equal highs and equal lows getting manipulated. Oh, this is good.
40:47
Speaker A
This is a good one here. Okay. [clears throat] So, here these two lows. Ah, I mean, close enough. Close enough. Close enough.
40:59
Speaker A
Okay. This is this is a good enough example. Okay. Low right here. Low right here.
41:07
Speaker A
Literally 50 cents apart. Okay. The market sees boom relative equal lows or equal lows manipulates it. What does that give the market the opportunity to do? Four times the amount of cookies underneath here. [clears throat] Buy positions.
41:24
Speaker A
Bow pushes price back above these highs. Okay. Um let me find one more example but for highs and then we'll show you guys data highs and data lows.
42:10
Speaker A
Sorry, I'm trying to just find e like literally just dead equal highs. There was a good example, but it was from a while ago, I think on the 4 hour time frame.
42:21
Speaker A
This is like a decent one, but it's not dead equal. This is going to be difficult for me to find because it's I mean it's hard to find like literally dead equal highs.
42:53
Speaker A
Um this happens a lot more on the low time frames. Let me see if I can just go over here and put in like the one minute Okay, I mean this is a decent example.
43:11
Speaker A
So we have one low right here and then we can see boom another low move down then a move up right here and then we have another low move down then a move up. The these two wick this wick and
43:25
Speaker A
this wick are the exact same exact same price. So we have relative equal lows or equal lows on both of these lows. And then we also can combine that with boom low resistance liquidity because we have three lows
43:39
Speaker A
stacked up. Okay, this is on the low time frame. It doesn't really matter, but it just it showcases the concept and just proves proves the point of this happens on every single time frame.
43:49
Speaker A
Okay, so price comes up, we start reversing. When we start reversing, what can we do? We can look I mean this is another good example. We have boom, one cookie here, two, three, four cookies.
44:02
Speaker A
What is the market market going to want to do? Target all of those lows. There you go. Relative equal lows.
44:15
Speaker A
No. Did I get rid of it? Okay. Doesn't doesn't matter because the last one is data highs and data lows. What are data highs and data lows? Data highs and data lows are news data highs and news data
44:27
Speaker A
lows. Okay. So, this is coming after high impact news events. Okay. So what we can do is we can go on to this handydandy website called Forex Factory and what we are going to look for is red news folders. Okay. So this and we'll
44:43
Speaker A
talk about high impact news and like risk management stuff later in this series. But essentially what we can do is we can look at these high impact news events. Okay. Like on the 13th I believe. Yeah. So the 13th we have CPI
44:59
Speaker A
news data coming out. Okay. Okay. And this comes out an hour before market open. I'm in Puerto Rico, so this shows me Puerto Rico time. This is coming out at 8:30 a.m. Eastern time. Okay. 9:30 a.m. my time, but 8:30 a.m. Eastern
45:11
Speaker A
time. Okay. So, we'll I'll show you guys an example of previous CPI. Hopefully, it plays out. Um cuz I I wasn't trading for all of December, so this will be good. I don't even know. We'll we'll see if it can demonstrate it well enough.
45:27
Speaker A
But essentially when we have these high impact news events the candles will be very drastic right because it's like boom we get very important economic macroe e e e e e e e e e e e e e e e e e e e econ economic
45:39
Speaker A
data about our country and in turn the NASDAQ and the S&P 500 when these news when these news um announcements come out it drastically affects the market.
45:51
Speaker A
Okay. And it drastically affects the market on the low time frames. So what we can do is the highs of the news candles and the lows of the news candles are very very beneficial for us and serve as high probability draws in
46:04
Speaker A
liquidity. Same thing as all these other draws in liquidity. We're just looking at the highs and the lows of the news candles. So what we'll do is we'll look at December and we'll look through and try and find CPI news data from December
46:20
Speaker A
18th. Okay, awesome. 18th of December. [clears throat] So, let's see if this ends up working in our favor here.
46:52
Speaker A
kind of not not so much on this day. Let's try and find a a better example of it just manipulating news candles new candle highs because again like I was like I was telling you guys, you're probably saying, "Okay, I'm just going
47:04
Speaker A
to give up now because this didn't work." No, that's not the case. Again, remember these high probability highs and lows.
47:11
Speaker A
It just gives the market makers the opportunity. So again, just pressing sell when we push above a data high or pressing buy when we push underneath a data low or pressing sell when we push above a London high or pressing buy when
47:24
Speaker A
we push underneath London session low. That is not a good way to trade because we need other confluences to confirm that price is actually going to move in the direction that we want it to move.
47:33
Speaker A
Okay, but we can just show show this example here. Okay, I mean this like we kind of get it. So this is market open.
47:44
Speaker A
This is when news data came out. Okay. This is the news data candle high. This is the news data candle low. Okay. So boom. This this this news data wasn't like super super drastic as other typical CPI news data candles are. But
48:02
Speaker A
this is pretty much what we would mark out. We would mark out the high and the low of the news data candle. And then this could be used as a draw in liquidity. Let's see if we can go to Oh,
48:11
Speaker A
November there was the government shutdown. So, I don't know if we had we had PPI news data on the 25th. Maybe let's try and look at that. Let's see if PPI news day moved the market at all on
48:25
Speaker A
the November 25th. Not really so much. Let's see if we can find a good example of news data.
48:51
Speaker A
Um, we have unemployment claims maybe. Let's see, November 20th. Yeah. I mean, I guess I guess this is about as good as it's going to get, but you're going to have to take my word for this. So, boom. These are the highs. So this right
49:22
Speaker A
here, 8:30. When is this? 25th. Oh, wait. 20th. Oops. Oh [ __ ] Maybe this was a good one.
49:43
Speaker A
It's still not still not the best, but whatever. This is when unemployment claims came out. This is we can see we're not using the high as a reversal point. We're really using this um like really this high time frame high. But
49:58
Speaker A
what are we able to use as a take-profit point? Data data lows. So again, we get manipulation. We don't really use this high as much of a man manipulation point really. It was just taking out this high time frame high and then we get a
50:14
Speaker A
reversal and then we ended up taking out this news data low. And it kind of sucks because we didn't get much news data throughout uh this government shutdown um [clears throat] on farm and we haven't like this this this
50:34
Speaker A
upcoming week is going to be good. This is this is actually perfect for you guys to look for examples of this coming up because this entire week we have a whole bunch of news. Okay, so like tomorrow or I
50:51
Speaker A
guess today is when you guys will be watching this. Look and see what happens on ISM manufacturing PMI. Okay, this comes out at 10:00 a.m. Eastern time. So if you guys traded today, look at what happened to the ISM manufacturing PMI
51:03
Speaker A
candle. See if we manipulated the high. See if we targeted the low. Um, but that is pretty much the last form of high probability draws and liquidity highs and lows that we can use to target or use as exit points within our strategy.
51:18
Speaker A
Now, I know that was very long, very hard, okay, for you guys to consume, but hopefully that elevated your guys's understanding of liquidity a little bit more. All right, I know that was a very long lesson, but hopefully that helped
51:36
Speaker A
you guys understand liquidity a little bit better instead of just saying, "Hey, yeah, look above highs and look below lows." And as we get into creating our strategy and putting all of this together, you're going to see tomorrow,
51:48
Speaker A
we're going to be talking about fair value gaps and imbalances. Okay, that's uh essentially talking about internal liquidity. Okay, cuz this is something that you guys are going to hear me say a lot throughout the series. price is
51:59
Speaker A
always either looking to take out external liquidity, which is uh highs and lows, or fill [snorts] imbalances, which is internal liquidity, okay? Which is typically like fair value gaps and imbalances, okay? And there's a bunch of different imbalances that we can talk
52:16
Speaker A
about, not just fair value gaps. There's going to be imbalances and then imbalances like advanced concepts just like we did with liquidity. Okay? So, keep your notebooks out. And your guys's homework for today is not only to get
52:29
Speaker A
Panda Express while listening to Central C while eating a Big Mac so you guys can understand how all the sessions work together. The other thing that I need you guys to do is mark practice marking out the sessions and then just look at
52:41
Speaker A
how se sessions just like how we did today. Sweep out the session highs and then target the session lows and then also do the same thing with previous day highs and previous day lows. Do the same thing with relative equal highs and
52:53
Speaker A
relative equal lows. do the same thing with low resistance highs and low resistance lows or just trend trend high trending highs and trending lows. Um, and then last but not least, if you guys want to do a little extra credit, go
53:05
Speaker A
through Forex Factory, find a bunch of high impact news events and then see how we use data highs and data lows as draws and liquidity for either potential entries or potential exits. Even if you guys don't necessarily have a strategy
53:16
Speaker A
yet, just start trying to formulate in your head like, okay, we sweep out highs to then target lows. That is the forefront of our strategy. We're using draws on liquidity to target other draws. Okay? So, we sweep out highs,
53:32
Speaker A
we're looking for sells down to lows. We sweep out lows, we're looking for buys up to highs. You guys are slowly slowly but surely starting to get this. Love and appreciate you guys. I'll see you guys tomorrow.
Topics:advanced liquidity conceptssession highs and lowsmarket makersAsian sessionLondon sessionNew York sessionliquidity drawsorder flowtrading strategystop loss hunting

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