**High Resistance vs Low Resistance Liquidity - ICT Concepts — Transcript & Summary | SozAI**
Source: https://sozai.app/transcript/high-resistance-vs-low-resistance-liquidity-ict-concepts/

TTrades explains high vs low resistance liquidity in ICT trading: failure swings, sweeps, and how to target low resistance liquidity with high resistance liquidity as stops.

## Key Takeaways

- Low resistance liquidity (failure swings) is the typical draw for price and the target.
- High resistance liquidity, created by sweeping liquidity before reversal, suits stop placement.
- Sweeps followed by closures back inside a range can signal high resistance liquidity and bias.
- Multi-timeframe analysis (daily and hourly) helps confirm which liquidity pools are relevant.

## What the video covers

- Defines a failure swing as a swing high followed by a lower high (or swing low followed by a higher low) before reversal.
- Low resistance liquidity: liquidity resting above highs/lows that is swept by failure swings and is easy for price to take.
- High resistance liquidity: liquidity that is swept before the reversal, so the structure that follows is harder to break through.
- Explains that price generates more highs and lows as it trades away, creating more liquidity pools.
- Suggests targeting low resistance liquidity while using high resistance liquidity for stop loss placement or as the side of the curve.
- Walks through TradingView examples on NQ, including daily range sweeps and failure swings resting below.
- Shows an hourly chart example where a range side sweep creates high resistance liquidity before a drop into low resistance liquidity.
- Demonstrates using daily-chart high/low sweeps and closures back inside ranges to add directional bias.
- Concludes that combining both concepts frames trade ideas and helps anticipate next-day moves toward highs and fair value gaps.

## Chapters

1. 00:00 Introduction and PDF overview
2. 01:08 Failure swings and low resistance liquidity
3. 02:03 Defining high resistance liquidity
4. 02:56 Using both liquidity types together
5. 03:53 Chart example: NQ intraday
6. 04:46 Hourly chart and range sweeps
7. 06:05 Additional example and lower timeframe liquidity
8. 07:47 Daily chart framing and bias

Answers

## Questions about this video

What is a failure swing in this video?

A failure swing occurs when price makes a swing high and then a lower high before reversing, or a swing low followed by a higher low. The video describes these as the source of low resistance liquidity.

How does high resistance liquidity differ from low resistance liquidity?

High resistance liquidity is swept before the reversal, so the liquidity is cleared and the level becomes harder for price to push through. Low resistance liquidity remains as failure swings that price tends to target.

How should traders use these concepts together?

The presenter suggests targeting low resistance liquidity as the draw on price while placing stops or positioning on the side of high resistance liquidity. Daily and hourly sweeps help add directional bias.

## Full Transcript — Download SRT & Markdown

00:06

Speaker A

how's it going everyone this video is going to be over the differences between low resistance liquidity and high resistance liquidity. Let's hop into the PDF before we go into the charts for some examples.

00:23

Speaker A

differences between High Resistance and low resistance liquidity you have to understand what a failure swing is so what a failure swing is is when we have a swing high and then we make a lower high relative to that before reversing

00:38

Speaker A

So to understand the differences between high resistance and low resistance liquidity, you have to understand what a failure swing is. What a failure swing is, is when we have a swing high and then we make a lower high relative to that before reversing.

00:53

Speaker A

failure swing so how I like to picture it is we have liquidity resting above highs and lows so as we trade away we then generate more highs and lows and thus more liquidity so what is high resistance liquidity well High

01:08

Speaker A

This high never got swept before the reversal. And similarly, over here we make a low with a higher low. This low was never swept prior to the reversal.

01:25

Speaker A

reversing and then what this does is wipes out the liquidity resting right here and right here here so now the liquidity is resting Above This high and low and that is what creates high resistance liquidity so now how do I

01:37

Speaker A

So now, what is low resistance liquidity? Well, low resistance liquidity is just a failure swing. So how I like to picture it is, we have liquidity resting above highs and lows. As we trade away, we then generate more highs and lows, and thus more liquidity.

01:51

Speaker A

diagram here you can see we have a high with a lower high next to it that is our low resistance liquidity and we just swept out a low here so if we get Market structure shift and start to trade away

02:03

Speaker A

So what is high resistance liquidity? Well, high resistance liquidity is the opposite of low resistance liquidity. It is where we first sweep that liquidity before the reversal. You can see here, we have a high, we make a higher high before reversing. We have a low, we make a lower low before reversing. And then what this does is wipe out the liquidity resting right here and right here.

02:16

Speaker A

new high after making a low and so what happens is we sweep this low and what else do you notice we have a high with a lower high or more low resistance liquidity and then the move finishes here let's hop into trading view for

02:31

Speaker A

So now the liquidity is resting above this high and low, and that is what creates high resistance liquidity.

02:44

Speaker A

highs lined up and if we look to the left this High here never took out this high so we have a higher time frame failure swing there and if you look down here we just took out these equal lows

02:56

Speaker A

So now, how do I actually use high resistance liquidity and low resistance liquidity together? Well, put simply, I want to be targeting low resistance liquidity, and having high resistance liquidity for my stop loss or on my side of the curve.

03:11

Speaker A

price swept this low over here making high resistance liquidity and then we trade to these failure swings you can see we do take out this High here but we end up leaving equal highs from this previous high and then we retrace to get

03:27

Speaker A

So in this diagram here, you can see we have a high with a lower high next to it. That is our low resistance liquidity. And we just swept out a low here. So if we get a market structure shift and start to trade away, this is high resistance liquidity. So here we get the market structure shift, or the change in the state of delivery. Now here I could look for an entry on the fair value gap or the order block. Or, if you notice here, we could not make a new high after making a low, and so what happens is we sweep this low. And what else do you notice? We have a high with a lower high, or more low resistance liquidity, and then the move finishes here.

03:39

Speaker A

lows which have not been taken out so you can see that that is low resistance liquidity on a lower time frame as they are making failure swings we look at the high end of this what do we see well we

03:53

Speaker A

Let's hop into TradingView for some examples.

04:04

Speaker A

resting right here but what do you see well we took out this side of the range creating High Resistance liquidity and we have failure swings resting below so let's see what happens and there we go we retrace into

04:19

Speaker A

So here we are in our first example, and if you take a look at this price action, what do you notice? Well for me, the first thing that stands out are all these highs resting above here. You can see we have a bunch of highs lined up, and if we look to the left, this high here never took out this high, so we have a higher timeframe failure swing there. And if you look down here, we just took out these equal lows into this gap.

04:31

Speaker A

high resistance liquidity and that can add to my bias let's take a look at NQ daily chart here to see what we have well we are trading within a range and if you see we have a high and a low and

04:46

Speaker A

So if we're going to change the state of delivery, I'd like to see price go from this low to take out these failure swings. Let's see what happens. And there we go. You can see price swept this low over here, making high resistance liquidity, and then we trade to these failure swings. You can see we do take out this high here, but we end up leaving equal highs from this previous high, and then we retrace to get another expansion.

05:01

Speaker A

now we get the sweep and the closure back inside the range so here is our high resistance liquidity and what do we have on the highs failure swings so if I have high resistance liquidity on the lows and failure swings on the highs I

05:15

Speaker A

So here we are in the second example, and if you take a look at the last three days of price action here, what do you notice? Well, if you notice, we have all these lows, or previous days' lows, which have not been taken out. So you can see that is low resistance liquidity on a lower timeframe. As they are making failure swings, we look at the high end of this. What do we see? Well, we see that this second day here took out this first day's high.

05:31

Speaker A

okay we just took out this high and what do we have on the low failure swings so ideally this high does not get taken before running this low so letting this play out we get some consolidation but that

05:49

Speaker A

Let's drop down to the hourly chart to see what this looks like. So down here on the hourly chart, you can see we actually have another low resting right here. But what do you see? Well, we took out this side of the range, creating high resistance liquidity, and we have failure swings resting below. So let's see what happens. And there we go. We retrace into the range before dropping and taking out all this low resistance liquidity.

06:02

Speaker A

resistance liquidity where would we want to see price trade to these previous highs and there we go and another little add-on here if you see how price took out this previous day's low before we moving higher to these highs this is

06:19

Speaker A

A lot of times what I like to do on the daily chart is just see where do we have failure swings, and where do we have high resistance liquidity, and that can add to my bias. Let's take a look at the NQ daily chart here to see what we have. Well, we are trading within a range, and if you see, we have a high and a low, and then we have a failure swing. So let's see what happens. Here you can see we take out this low, so that has the possibility of becoming high resistance liquidity. But as we play this ahead one more day, you can see now we get the sweep and the closure back inside the range. So here is our high resistance liquidity, and what do we have on the highs? Failure swings. So if I have high resistance liquidity on the lows and failure swings on the highs, I can use this to add to my bias for long setups. So there we go, we run the high.

06:32

Speaker A

first thing that catches my eyes are these highs up here you can see we just have a bunch of failure swings right so I'll just go ahead and Mark that out like so and that is acting as a draw on

06:45

Speaker A

All right, let's take a look at another example. Here we have a high, and here we have a low. So let's see. Okay, we just took out this high, and what do we have on the low? Failure swings. So ideally this high does not get taken before running this low. Letting this play out, we get some consolidation, but that is what happens. Now what do you see? Well, now we have a high here with a lower high, and we just swept out this side of the range in an uptrend. So if this is going to be high resistance liquidity, where would we want to see price trade? To these previous highs. And there we go. And another little add-on here: if you see how price took out this previous day's low before moving higher to these highs, this is creating high resistance liquidity on a lower timeframe.

07:01

Speaker A

important low as it is previous day low so now I'd anticipate this low to hold and trade away to this high so let's see what happens and there we go so you can see by just understanding the low resistance

07:16

Speaker A

So here we are with our next example. Go ahead and pause the video and take a moment to mark it up. But what do you see right here? Well, the first thing that catches my eye are these highs up here. You can see we just have a bunch of failure swings, so I'll just go ahead and mark that out like so, and that is acting as a draw on liquidity. Now if we're going to be targeting this high, I want to see a sweep for high resistance liquidity. Well, what do we see right here? We sweep this low, creating high resistance liquidity. And another important note: this is an important low, as it is the previous day's low. So now I'd anticipate this low to hold and trade away to this high. So let's see what happens. And there we go.

07:31

Speaker A

took previous day low before coming in and closing and where does it close above 50% of this Wick but then I can anticipate the next day to trade higher to these highs and into this fair value Gap so once again in this next example

07:47

Speaker A

So you can see, by just understanding low resistance liquidity and high resistance liquidity, an idea was framed. Now out on the daily chart, you can also see this low resistance liquidity as these previous days' highs, or the last three days' highs, were lined up like so. And how this day took the previous day's low before coming in and closing, and where it closes above 50% of this wick. Then I can anticipate the next day to trade higher to these highs and into this fair value gap.

08:04

Speaker A

here and is weaker we're going to hop into that chart for the rest of this example so here we are in es you can see this is the smt at the high where NQ created the high resistance liquidity

08:17

Speaker A

So once again, in this next example, where is the high resistance liquidity, and where is the low resistance liquidity? You can see we purged this high, creating high resistance liquidity, and ideally I'd like to see price trade down to this low resistance liquidity. Now since ES formed an SMT here and is weaker, we're going to hop into that chart for the rest of this example.

08:34

Speaker A

level then price closed above creating an order block you can see we have low resistance liquidity right above an order block let's see what happens and there we go we run all these low resistance lows into the order block

08:50

Speaker A

So here we are in ES. You can see this is the SMT at the high, where NQ created the high resistance liquidity. And where is the low resistance liquidity? You can see we have this really obvious series of lows resting right here, right above a fair value gap with an order block. Why is this an order block? Well, it wicked into an important level, then price closed above, creating an order block. You can see we have low resistance liquidity right above an order block. Let's see what happens. And there we go, we run all these low resistance lows into the order block. You can see the mean threshold of this creates a reaction, and where do we go? Well, if you take a look at these highs, now we have a series of lower highs all stacked up. We just swept out all these lows, so where is price likely to go? Well, to these highs. Let's see, and t

09:02

Speaker A

lows where is Price likely to go well to these highs let's see and there we go so here we are in our last and final example and if you notice we just took out our previous day low so as we zoom

09:16

Speaker A

in here what do we have on the high well we have a swing high with a lower swing High to the right of it or failure swings so let's see if we get a reaction off of this level we do and we get a closure over

09:31

Speaker A

this series of down Clos candles here validating it as an order block now just in terms of discount in premium doesn't really make sense to look for an entry off this order block here so then I will use the mean threshold or I can just

09:46

Speaker A

wait for a second entry so let's see so the mean threshold does hold and then we validate another order block so marking out the main threshold of that as well let's see here we create a low I could look

10:02

Speaker A

for that so if you notice we swept out this low here what else do we have resting well we have failure swings here so this looks pretty much just like the diagram from the PDF but what do we have

10:16

Speaker A

here well the down Clos candle into the important level or sweeping right here once I get a close of that validates it as an order block and so there we get an order block formation but look to take

10:30

Speaker A

my entry right here my stop on the high resistance liquidity and then looking to take off at the highs so let's see how this works out and there we go we get a run higher to the take profit so just a

10:44

Speaker A

little thing with order blocks here you can see once we close over the series of down Clos candles here mean threshold is respected here we close over creating this propulsion block which the mean threshold is continuously respected but

10:58

Speaker A

why would I not expect this low to hold or wouldn't really trust it and want my invalidation here unless I get a sweep creating High Resistance liquidity well price never came and closed over this level right so I'm not using that as a

11:12

Speaker A

valid low for invalidation once we sweep it then we form another order block off of this propulsion block and the mean threshold of that should be respected which it is and then it continues higher now I hope you found this video helpful

11:27

Speaker A

if you did please consider liking and subscribing and I'll see you guys next time have a good one

Topics: ICT liquidity high resistance liquidity low resistance liquidity failure swing market structure NQ liquidity sweep fair value gap smart money concepts

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