Liquidity is just where people have their buy stops and sell stops, further explained below.
Buy Side Liquidity (BSL):
Where anyone who got short will have their stops. Above the obvious highs.
If price breaks into this area, Anyone short will have to buy back, or cover their position.
Sell Side Liquidity (SSL):
Where anyone who got long will have their stops. Below the obvious lows.
If price breaks into this area, Anyone long will have to sell back, or liquidate their position.
Why should you know this?
You want to be a seller after a stop raid in buy side
or
You want to be buyer after a stop raid in sell side.
(depending on bias/MSS/displacement/etc.)
Don't make it so difficult on yourself or overcomplicate things. See where the obvious highs are, or where you would put a stop.
Any equal highs/lows, there is liquidity resting above/below. That is why its always a target.
check out this short video for more.
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Rebalance or rebalancing a FVG is when price returns to a Fair Value Gap (FVG) and completely fills it in, removing the imbalance.
This can occur after the fair value gap has been created, as shown below. I like to look for this on the 15/5/1 minute time frames intraday as well as the daily and hourly timeframes.
pretty boring. open, looking for some type of liquidity run. Maybe rebalance day then fall back into the range. Days like this, draw a broadening formation. $ES_F #TheStrat#ICT
Importance of displacement and the marking out the displacement range, little thread example. 🧵
As you can see, the first move "breaks" the short term high, but no displacement.
The second one, I highlighted the displacement range, see the quick and energetic move? Thats MSS.
Then mark out the displacement range with your .5 fib to see "discount" and "premium"
you want to long in a "discount" or below the .5 fib
Search for a FVG in the discount to find an entry long.