Speaker A
Good morning, good afternoon. It's been such a long time since I haven't done any videos for anyone.
Usman Noah EN explains liquidity trading on NAS with 4 live trades, focusing on FVGs, order blocks, divergence, and trade timing.
Key Takeaways
- Always start with a higher timeframe (weekly/daily) to understand market direction.
- Wait for liquidity to be taken out before entering a trade to avoid being the liquidity.
- Use divergence and multiple timeframe confirmations to time entries.
- Define clear take profit levels before entering a trade to ensure trade potential.
- Understanding market structure and order flow is critical for successful trading.
What the video covers
- Usman Noah EN returns to explain four trades on NAS focusing on liquidity concepts.
- He starts with a weekly outlook to understand market direction and potential reversions or consolidations.
- The analysis includes identifying Fair Value Gaps (FVGs), order blocks, and liquidity zones on multiple timeframes (weekly, daily, 4-hour, 1-hour, 5-minute, and 1-minute).
- He emphasizes waiting for liquidity to be taken out before entering trades and using divergence as confirmation.
- The video explains the importance of having defined take profit (TP) levels and understanding market structure for entries.
- Usman highlights the significance of market displacement and narrative behind price moves to identify order flow.
- He demonstrates how to avoid common mistakes like entering too early without confirmations.
- The video includes live examples of bullish and bearish trades with detailed reasoning behind entry and exit points.
- He stresses patience and precision in trading, showing how to use liquidity traps and engulfing candles as signals.
- The content is educational and aimed at helping traders improve their understanding of liquidity and price action trading.
Chapters
- 00:00Introduction and Video Purpose
- 00:45Overview of Trades and Shorts
- 01:45Weekly and Daily Market Outlook
- 02:34Liquidity Zones and Order Blocks
- 04:22Using Divergence for Confirmation
- 05:01Setting Entry and Take Profit Levels
- 05:47Price Action on Lower Timeframes
- 07:22Liquidity Traps and Market Reaction
- 08:22Understanding Market Displacement
- 10:13Key Trading Rules and First Trade Recap
Full Transcript — Download SRT & Markdown
Speaker A
Um, so it's good. Actually, I'm quite happy to be here making a video for you guys. The goal, the entire goal, is for you to learn, take some stuff from it, maybe not.
Speaker A
Uh, it is up to you, but the only thing that I'm going to say is that during the month of August, a lot of people struggled to trade on indices.
Speaker A
And [snorts] uh, I would say that even based on the stream, we have been doing amazing.
Speaker A
So the goal is to explain those trades and also explain the shorts because the short was actually incredible. So you could actually take the short too.
Speaker A
Um, so yeah. So let's go deeper into these two trades that I've taken and also shared, and I took live during the stream, and explain the short and potentially what could happen next week.
Speaker A
So, um, first of all, as you guys know, I'm always starting with the weekly outlook.
Speaker A
Because when you understand the weekly, you understand the direction. Okay? So last week, on the weekly basis, we tapped for the first time into our massive FVG weekly, which means that now we may start to think about a reversion or we
Speaker A
may start to see a consolidation. We may start to see a slowdown of downside bearish momentum, and that's exactly what happened, okay?
Speaker A
Now, if you go to the daily, on a daily, now we have a little bit more information. On the daily, we see that we have an internal liquidity, this one, okay? So, what and we have two
Speaker A
equals, which is also part of the liquidity. And below this, we still have this FVG.
Speaker A
So, this is extremely interesting for us. There's also another detail: we also have this breaker block, which is also a very important detail for us.
Speaker A
And, um, I know you guys may say, but how about what we have at the bottom?
Speaker A
Because we also have another FVG. We also have a BPR at the bottom. Why are we not going to those lows? And that's something that I think could or will happen next week. But let's focus on the trade of this week first.
Speaker A
Okay, so now we understand that this area is actually quite heavy, okay? So, in here, we could see a potential change of statement. Maybe we can now potentially look out for some long positions. Great. Cool.
Speaker A
So, now, what I'm going to do is that I'm just going to highlight the FVG because we understand the logic behind. And now, we're going to go to the one or four hour, it's up to you. I like
Speaker A
to jump between four and one. So, on one, what we see is that in here, you see? In here, in our—what was it? This was our daily FVG. So, in our daily FVG, we have our one hour FVG and one hour order
Speaker A
block. Look at the slowdown of momentum. What people—so, and that's the massive difference. A lot of people who trade only liquidity without thinking too much about entries will be looking at taking those lows and be like, now we can take
Speaker A
the long, that we take a long directly here, then we see a smaller reaction from this place and then we put their stop loss here and up, then we get out.
Speaker A
And that's something that I used to say, just don't do that. Wait for different confirmations. What type of confirmations then?
Speaker A
So, first of all, what I was looking for is do we have any type of divergence? And we can see there is divergence in the 4 hours.
Speaker A
Yeah, 4 hours divergence. We could see it, a small one in here, not too massive, a small one, but we could see that there is divergence. So, from there we understood and we knew that a long was coming quite soon. So, now the
Speaker A
question is about when? You know, when the long is coming. I know the where.
Speaker A
I know that an FVG is here on top. This will be my final TP.
Speaker A
This will be my TP. So, I'm looking to enter below this low and I'm looking to TP above this high, which is actually quite interesting because what do we have? We also have a daily FVG.
Speaker A
So, those two areas are very interesting for us. So, we have the TP. We have the liquidity out. Now, it's all about asking ourselves, when?
Speaker A
Okay, cool. So, to know the when, we have our place where we know that potentially we will have a reaction.
Speaker A
So, now that we are inside of this price of interest, now we can go to the 5 minutes. And what do we have in 5 minutes? Look at this.
Speaker A
Massive move to the downside, which means that from here we are expecting displacement to go lower, right?
Speaker A
Which is great. And look at what happened. We tapped into this order block. We got our bearish movement from there.
Speaker A
But, look at this. This is a structure liquidity, and this is another structure of liquidity.
Speaker A
But, below this structure, we used to have an FVG. We have an FVG from here. It's here, here. We have an FVG here.
Speaker A
So, that's why the market is reacting. Break of structure. So, this is our trap. In here, a lot of people start to believe that now we're going higher.
Speaker A
And look at what happened. We have equals in here. Look at this. Look at all of this liquidity in here. I want you to give attention to this because this is the motivation for us to go long.
Speaker A
The amount of liquidity left in here is ridiculous. That's our reason to go long.
Speaker A
Without talking about all the liquidity that we have on top in here. So, the question up in here is, okay, we have this one out. Cool, this one is out. Oh.
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Let me put this in black. And now we've taken this one. And look at what happened here.
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Engulfing candle. So, we literally tapped—uh, after taking the liquidity, we tapped into this beautiful FVG.
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And after that, we got a bullish engulfing. I couldn't enter on this candle because I was scared that this FVG um will potentially bring me down. So, I've waited for this one. After this one, I've decided to go long.
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Stop loss at the bottom, and now I can target what I have in mind, which is the thing on top. But, I will speak about the rest after. Don't worry because there is a lot of—there is a lot
Speaker A
to talk about right now. So, that's the first step. However, you guys need to also understand why the markets—because that's a question that you can ask me. Because you guys can say, "But, yeah, look at this. We tapped into the
Speaker A
FVG in here." Why did the market decide to go now? Like, why here? And the question sometimes, or the answer, sorry, could be somewhere in the 1 minute.
Speaker A
Look at this. And that's the—like, that's the thing that I've been saying this for so many times. Understand the displacement. Where the displacement is, understand the narrative behind it. From there, you understand where are the orders. The
Speaker A
fact that—look at this. We've tapped in here into nothing, and we got the big move to the top side.
Speaker A
Now, in here, we have something that looks clean. And look at this, the market is giving you a hint by doing this previously.
Speaker A
Oh. By doing this previously, you see? Tap into the FVG, poof, massive displacement to the top side. What happened? Poof.
Speaker A
We tapped into the FVG, massive displacement to the top side. And look at this.
Speaker A
Nicely to the 50%. That's what we call precision. The only thing that I was basically not that sure about is because when I was looking into it, um, I was looking for potentially like those FVGs, but we never tapped into it. So, I
Speaker A
was like, "Okay. He's tapping into this FVG, massive move to the top side. We have another FVG." I was like, "Mhm." On the 1-minute, there's a lot. However, the 5-minute was telling me we may not have time for a
Speaker A
retracement. And that's exactly what happened. Poof. And now we fly. The key learning behind, guys, on this first trade, and we're going to go for the next one after, is understanding that you guys
Speaker A
need to wait for liquidity to be out to then find a potential entry. And remember those two rules.
Speaker A
If you don't find any liquidity, it means that you are the liquidity. If you don't have any TP, if you don't have any take profit, there is no trade.
Speaker A
Remember what I said at the beginning, I have a TP, so I have a trade potential.
Speaker A
Cool. Nice. So, that was my first entry on Tuesday, which is great. I went—
Speaker A
I mean, I let the the market decide about my faith, and we see this later on." Now, we go to the next one, which is here, which is some the one that I took during the stream.
Speaker A
Why this one was a good trade for me? First of all, I I couldn't take this one. I was sleeping.
Speaker A
I've been saying recently that Asia has session has been amazing. But we're going to use the same logic.
Speaker A
Okay? Internal liquidity out. Now, when you understand that the internal liquidity has been taken, the next question is about what do we do?
Speaker A
What do we do? What do we do from here? Look at this. We have some equals left on top. Just here.
Speaker A
That's beautiful. That's beautiful. So now we know that potentially this could be our target. But if you pause the video and find and and the and try to If you pause the video, try to find another liquidity because there is
Speaker A
one and two days are literally more difficult to find. Actually, there is three. That's your exercise. Because if you understand where is the liquidity, you you could you can understand the narrative behind. So now look at this.
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Another equal. Look at this. The reason why the market decided to go down. That was the reason. The reason why after this the market decided to go up.
Speaker A
Look at all of this trend line liquidity that we have here. That's a beautiful trend line of liquidity.
Speaker A
You see? So do you have so much liquidity, but the beauty of it is Look at this one.
Speaker A
This one is out. This one is taken. So now the question is, why this low should be respected.
Speaker A
And if And if you go back to what I said, we have a 4-hour FVG here, including the order block.
Speaker A
Now, the logic is logical. Because we know that the market love love to react based on FVG and order block. And that what that and this is exactly what happened here. Now, the question is could we enter I mean, if we have
Speaker A
nothing in 1 hour, is it annoying? Absolutely not. The rule is simple. Find the direction in the weekly and the daily. Find the when in the 1 hour and 4 hour. From there, you can understand the 5 minute
Speaker A
and the 1 minute. So, if you have a direction, you know the when in 4 hours, it's enough.
Speaker A
So, from that, you can go to the 5 minute and understand again what happened here.
Speaker A
We took the liquidity. And after this, this time, we tapped into a BPR. A beautiful two FVGs aligned that create a BPR.
Speaker A
And look at what happened next. We see a slow down. We see the first momentum going up. The market is going down. Divergence.
Speaker A
Beautiful. This is an A+ setup for me. Boom. And look look look. Sadly, you will not have many opportunities, but this one was yours. Congratulations.
Speaker A
This was your entry here. 3:00 a.m. UK time. For me, it's a sleepy sleepy sleepy Noah at that moment. Um but this could be your another entry here. Boom.
Speaker A
Rejection. Engulfing. Bullish engulfing. We put the stop loss below the order block for plan B and now boom we go back again.
Speaker A
Another 1 to 15 in here and another 1 to 10. Okay, cool. Now that we we go back to the 1 hour, okay, because sadly I'm sleeping, so maybe I couldn't, but look at the narrative again.
Speaker A
We have now a 1 hour BPR. Beautiful. Let me delete all of these quickly.
Speaker A
Just to make it simple and clean for you. Boom, boom, boom. So now, look at this. Beautiful.
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BPR. And look at all the liquidity that we have here. Including this one, too.
Speaker A
Okay, nice. So now we go back to the 5 minute and we try to understand again where could be our entry.
Speaker A
And if we go back to our entry, we see here that there is an FVG with an order block.
Speaker A
And you know, like when you have this you have the plan plan A, which is the FVG, and you have the the plan B, which is the order block. That's beautiful.
Speaker A
If you go to the 15 minutes, in the 15 minutes, you also have an FVG.
Speaker A
Look at this. You have an FVG here with an order block. So that's perfectly aligned.
Speaker A
So what do we do? We do the same thing that we did before. We go back to the lower time frame. Do we have a divergence?
Speaker A
Uh Okay, here we go. We don't have a divergence in five. Do we have a We do have a divergence in 1 minute.
Speaker A
So, our entry is coming quite soon. So, I think I've took my entry here. Boom.
Speaker A
That was my entry. Boom. 5 minutes. Beautiful. Beautiful. Amazing. And the question that you may ask and you may say is understanding why. Why are the market has so much momentum after tapping here? What What the reason? Sometimes, you're not going
Speaker A
to be able to see it in 1 minute. Maybe you're not going to be able to see it in 15 second.
Speaker A
It can be in 5 second or it can be in 1 second. We don't know. What What we know is that trillions of dollars has been made, moved from this exact moment.
Speaker A
So, follow where the money goes. Okay? Boom. Beautiful. And look at this. Beautiful. FVG breaker block.
Speaker A
That's your entry. GG. And this is the last entry for this month. If you watch this video multiple of multiple and multiple of time, you will understand the logic behind because I'm always trading with logics.
Speaker A
Poof. Beautiful. Now, the question is could we sell in here? And if we go to the same logic, well, I mean, we do not have any liquidity left in here anymore.
Speaker A
So, the liquidity in here is out. We are tapping into the daily FVG, 4-hour FVG.
Speaker A
So, now we can maybe go to the 5-minute and look at the 5-minute. Look at this.
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I want you to look at this. What do you see? Pause the video, try to ask, try to make your own research.
Speaker A
Remember what I said. I said, "Always understand where the liquidity is. When the liquidity is out, try to understand if we are tapping into an FVG, yes or no." Now, we are tapping into the 4-hour and daily FVG. We also took a liquidity, and
Speaker A
now we can see a slow down of momentum. Do we have any I don't know divergences?
Speaker A
Not really in here. 15, not really in 15 and half an hour, not really. So, which is fine. Divergence is not an obligation, but what what the obligation is is wait for the market to tap, always, into an
Speaker A
FVG. Now, look at this. Beautiful reaction from the order block. Nice. No problem. He's reacting to our plan B.
Speaker A
Our plan A is to enter on a FVG. Our plan B is potentially enter from our order block, and that's it.
Speaker A
What happened? We have a beautiful reaction from the order block, following with a beautiful engulfing candle. This could be your entry.
Speaker A
Boom. Stop loss here. And now that we are Friday I would say just try to try try not to be too greedy.
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So, the TP1 should be here, which is not a crazy TP and your last TP should be here.
Speaker A
So, on Friday you could be doing this. A 1:25 risk-reward. That's what you could be doing this week if you you trade like me. If you have the same vision as me. And if you understand this, I want you also to understand that
Speaker A
this is exactly the same approach for those four trades. The only thing is understanding the daily will give you the best direction. That's why I used to say weekly daily get your where, 4 1 hour get your when, 5 2 1 minute get your
Speaker A
now. Let me know if you guys enjoyed the video. If you have any questions, um we're going to I'm going to I can more than happy to answer to your questions when it's related to my strategy.
Speaker A
So, yeah. Take care boys and girls and have a good Sunday.
Topics:liquidity tradingNAS tradingFair Value Gaporder blockdivergenceprice actiontrade entriestrade managementmarket structureUsman Noah EN
