Ever wondered why your CHOCH, QM, or whatever you call it doesn't hold at times?
A 🧵
(IN A BEARISH TREND)
Once price does this, it creates a range with both strong lows and highs at the same time .the aim is to move to take out internal liquidity👇
so if we can't catch the buy before it gets to the premium supply provided it aligns with HTF oderflow then the buy is no more valid and it turns to external liquidity to be grabbed in the sell continuation
This is how the buy would have been valid since it hasn't moved into premium before retracing.
But here price left the buy order run into the range extreme, it now aligns with sells.
Then the Buy/ CHOCH is no longer valid.
A chart example
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We’re studying hard all through this week, and here’s what to do if you’re not part of my trading community:
Study these 3 key topics:
1. Structure
2. Liquidity
3. POIs (Points of Interest)
How to Approach It:
• Dedicate one topic per day.
• Watch the video for that topic.
• Practice by studying at least one year of price action to deepen your understanding.
I’ve shared free but highly valuable resources to guide you. Watch them here:
1:
(a) 1-week timeframe market structure (premium and discount)
(b) point of interest
(c) anticipation
2: Price taps into the 1week point of interest
4: Drop down to the 1-hour time frame for a confirmation entry
(a) a sweep of the previous low, creating a protected low
(b) a break of structure creating a swing structure
(c) liquidity validates the point of interest
(d) entry
What happens 80% of the time when you analyze the M1 timeframe
Greater chance of false signals: Due to the increased noise, there is a greater chance of false signals or fake BOS, which can lead to losses for traders.
To start with, most times when price sweeps LIQUIDITY, it tends to rally up or down immediately, so it taps into the GAP (IPA/FVG) instead of the order block.
Now what is IPA/FVG?
A short 🧵
Pay close attention to learn from this 🗣️