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Hello traders, welcome back. In today's video, I'll show you how I trade live with my members using my 1-minute price action trading strategy. Let's go. This video is not financial advice.
Learn how to trade live using 1-minute price action and liquidity zones with TRUSTED SPOTS. Understand reversal trades and stop loss strategies.
Key Takeaways
- Liquidity zones formed after breakouts are critical areas where price reversals often occur.
- Stop losses of retail traders create liquidity that the market hunts before reversing.
- Confirmation of strong bearish reversal patterns on lower timeframes increases trade reliability.
- Proper stop loss management and understanding market structure improve trade success.
- Trading requires patience, risk management, and understanding of market psychology.
Summary
- The video demonstrates live trading sessions using a 1-minute price action strategy focusing on liquidity zones.
- The trader explains how to identify liquidity zones formed after breakouts and how these zones attract stop losses.
- Trades are placed based on strong bearish reversal patterns confirmed on a 5-second chart.
- The logic behind trades involves anticipating price reversals at liquidity zones where retail traders’ stop losses accumulate.
- Examples include trading the Euro AUD and British Pound charts with detailed explanations of market behavior.
- The trader emphasizes the importance of waiting for confirmation before entering trades.
- Stop loss placement is discussed as a key factor influenced by breakout and retest zones acting as new resistance or support.
- Repeated price behavior such as liquidity hunts and stop loss traps are used to predict reversals.
- The video stresses that trading carries risk and is shared for educational purposes only, not financial advice.
- The session concludes with a summary of the simple but effective logic behind trading liquidity zones.
Chapters
- 00:00Introduction and Disclaimer
- 00:39Analyzing Euro AUD Liquidity Zone
- 01:25Placing First Trade with Bearish Reversal Confirmation
- 02:01Explaining the Logic Behind the First Trade
- 04:26Analyzing British Pound Liquidity Zone
- 05:01Placing Second Trade and Its Logic
- 07:58Waiting for Third Trade Setup and Execution
- 09:08Summary and Closing Remarks
Full Transcript — Download SRT & Markdown
Speaker A
Everything shown here reflects my personal trading journey and is shared for educational purposes only. Please remember, you are fully responsible for your own money and trading decisions.
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Trading carries significant risk and results may vary depending on your experience, strategy, and risk management. These videos are simply me documenting what I do in the markets.
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Always do your own research and trade responsibly. Right now, I am analyzing the Euro AUD chart and I have a clear trading opportunity here. This zone is a liquidity zone and I'm expecting that price will go up and after hitting
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this zone, particularly, it will fall again. So, let's create a zone. This is a liquidity zone because price recently gave a breakout here. So, this resistance, which was working as support, can give us a reversal trade here. Let's wait now. If price falls,
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then I will use this particular zone for a reversal. But currently, this is the reversal zone according to me. Let's wait now for the retest.
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Price approaching the liquidity zone. I'm ready to place my trade. Let's open the 5-second chart because we need a strong bearish reversal pattern.
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Price at the zone. Now, we need a strong bearish reversal pattern to place the trade. Okay, price is going in the upside direction, but this is going up just to grab more liquidity. I have high expectation of reversal here and yes,
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that is the confirmation and I have placed the first trade of today's session in the downward direction. Let's understand the logic behind this trade.
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So, let me remove everything first of all. Let's start from the top. So, as you can see that price started reversing from this zone and the fall was strong. It fell and did not create any bullish candle. You can see that in
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this fall there is no green candle whatsoever, which means that the price was falling. It was a free fall and there is so much liquidity that is left behind and the price has to reverse to grab liquidity. Now, if I was a retail
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seller here in this situation, then I would place a sell trade. If price gave a breakout from this zone, I would most likely shift my stop losses from the top up to this particular zone because I would think that if there is a breakout,
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the price will not try to break this zone again and that's why I would shift my stop losses near to this zone.
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And that's why I was expecting a reversal from this particular resistance because most of these stop losses of retail sellers, those who sold here, those who have a short position in these levels will most likely have their
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stop losses near resistance and that's why I was targeting a reversal trade. And the same thing happened. We successfully placed the trade when price hit this liquidity zone. The confirmation was very strong as you can see. And that's why we placed this trade
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with a strong confirmation and a proper logic behind the trade. The logic was simple. This particular zone holds so much liquidity, so many stop losses that the price will most likely hit this zone and then it will fall again. I used
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the same logic and we successfully booked profit on our first trade. Let's find another trading setup now. Right now I'm analyzing the British pound or chart and I have a trade opportunity here. This is a liquidity zone and I'm expecting
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reversal from the same zone. Let's first mark the zone. So, this is a liquidity zone after the breakout and I'm expecting a reversal after the retest.
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Price is very near. Let's open the 5-second chart. If I have a strong bearish reversal pattern, I will instantly place a trade. There is no confirmation from the sellers. I'm waiting for a strong selling candle.
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Yes, we have the confirmation and now I have placed the trade in the downward direction. Let's understand the logic behind this trade.
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So, let me remove the zone first of all. Let's start understanding this trade from this move.
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You can see that from this particular point, the price started falling very aggressively. And up to this zone, the price does not form any bullish candle, any green candle whatsoever.
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After these candles, the sellers were in the market and they were active and finally the price gave a breakout from the support level. Now, as the price gave a breakout from the support, this support becomes resistance and because it becomes resistance,
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traders who placed sell trades here, those who shorted the market, will likely trail their stop-losses up to this newly formed resistance level. The reason is because they are already in profit and they want to close in profit. So their entries were
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here. Their stop losses were here. Like the traders who sell here, those who shorted the price will have their stop losses here. But because of this breakout, they will most likely place their stop losses near
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this zone. Now because of that the price created a liquidity zone here.
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And as there was liquidity, the price reverses, hit the stop losses, and again it falls. Now those who shorted because of this candle, this selling candle, because they think that this is a breakout, this is a retest, and now they
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are going to place a sell trade because the market is going to fall. If they place a sell trade here, their stop losses will be available at the nearest resistance, which is here. So that's why the price reverses
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again, hits their stop losses again, again falls, again goes up, again creates this selling scenario. The price reverses again to grab liquidity, and finally the same thing happened here as well.
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Price gave a breakout here like it did here. So according to me, as price has liquidity after the breakout at the resistance, I was expecting the same. So I placed a reversal trade here because this was a breakout candle. The price
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reverses to grab liquidity, and after that it will fall, and that's why I applied the same strategy. And the confirmation part was also decent. You can see we have placed our trade here because the confirmation was strong. So
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I placed the trade, and we booked profit on the second trade. Let's find one more trading setup, and then we will end this trading session today.
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If price in the current situation reverses completely towards this zone, I will most likely place another reversal trade because I'm expecting that the price will likely go up to hunt more stop loss and then it will fall like it did here. You can see that
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price reverses almost three times just to trap more sellers and then finally it gave a breakout. So, I'm expecting a similar price behavior on this zone also. So, I'm waiting for the price to go up and hit this zone so that I can place a
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reversal trade. Let's wait now. Price approaching the liquidity zone one more time. Let's open the 5-second chart. I'm expecting another reversal here. I need a strong bearish candle pattern here.
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Yes, that is a good confirmation and I have placed the third trade of today's session in the downward direction. Let's understand the logic. The logic is very simple. Previously, this particular zone worked as a liquidity zone and after
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that the price formed a strong bearish candle. This created more selling pressure, which means more stop losses at this resistance.
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And so, I was expecting that the price will go up, hit this zone, and then it will fall. The price shows similar reaction here. When price gave a breakout, the price rejected from the same level three times because it was
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grabbing more and more liquidity. It was trapping more retail sellers. I was expecting similar reaction here and that's why I placed another trade when price hit the same liquidity zone because I think that price is likely to trap more retail traders here and you
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can see the same thing happened and we have successfully booked profit in this particular trade as well. The logic is very simple.
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Market behavior previous
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trading because my target is to take three trades in a day. That is the most I trade because I believe in quality over quantity. So, that is it for today.
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I hope you understand the concept behind these trades and these logics are very simple to apply. You just have to focus where the liquidity is available and then you can trade like this. So, thanks for watching. We'll see you in the next
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video. Till then, keep trading. Keep working hard. [music] Good day.
Topics:price action tradingliquidity zonesstop loss huntingreversal trades1-minute trading strategyForex tradingEuro AUDBritish Poundtrading psychologyrisk management
