Luckshury Profile picture
Aug 4, 2023 9 tweets 3 min read Read on X
Liquidity Levels

a thread 🧵 Image
this thread will cover the following:

- how I find my favorite liquidity levels
- indicators I use to aid in finding them
- session candles
- daily high/lows
- pivot rays
- preferred timeframes
pivot line indicator

a simple indicator I had made to suit my needs in marking out pivot/fractal highs and lows by extending the rays out. Image
pivot line indicator (2)

the concept -

look for a series of either higher lows or lower highs on this indicator which do the following:

- remain untapped

- are close together

- have a decent gap after them before the next swing pivot. Image
preferred time frames -

- 5m (scalpers)
- 15m (most used)
- 1h
- 4h
- daily (great M-HTF trades)
daily highs/lows

note - this does not show swing highs/lows

it shows each individual days daily high & low

I use these in a similar matter to the pivot lines

series of consecutive HLs or LHs followed by a gap

the last one of those consecutive h/ls offers a trade opportunity Image
session candles

untested highs/lows from session candles are also really good resting liquidity points.

there is no ray possible for this currently

its the same concept just without visual rays Image
tpo poor highs/lows

2 blocks or more highs/lows on TPO profiles

- 50 tick on the inverse (BTC/USD) pair

when leaving poor highs/lows behind expect continuation/revisits of those levels Image
BONUS

to RECEIVE everything

- TPO Chart
- Session candles
- liquidity indicator

option 1 - go through everything I've posted manually and try and find it somehow (you are welcome to do)

option 2 to RECEIVE - Follow, Like and reply to the original tweet of this thread

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More from @Luckshuryy

Oct 10
market microstructure (liquidity)

how markets move...

a thread 🧵 Image
market/limit orders:

the market moves solely based on events not time.

market order (taker)
limit order (maker)

stop orders/triggers → triggered at market and most of the time forced with someone being forced out the market (stopped out).

note - pattern/breakout traders in general can also use trigger orders to buy/sell the breakout.Image
footprint charts:

displays ONLY market orders.

most common setups is to see market sells on the left with market buys on the right → bid-ask profile

I find footprints the best for spotting absorption or exhaustion in the markets as they display already transacted data.

i.e when you see lots of sell orders at the same price level without price able to budge it is sufficient evidence to say limits are holding up price.

footprints do not have to be shown on time based charts only either, they are extremely useful when monitoring volume charts, delta charts or range bars, in particular on lower time frame equivalents.

tldr: footprints show a record of already transacted orders, unlike heatmaps displaying resting orders, which have the ability to be pulled/added to.Image
Read 8 tweets
Sep 26
absorption (simplified)

a thread 🧵 Image
what is absorption?

when market orders cannot bypass limit orders you get absorption.

how you spot this is NOT through watching resting limits in the orderbook, but tracking the level of market order aggression at various stages. Image
CVD explained:

cumulative volume delta.

tracks buying/selling pressure over time, this allows for easy comparison between pivots.

it can be displayed as a line, candlesticks, or straight up values. Image
Read 8 tweets
Sep 16
market structure (breaks & failures)

a thread 🧵 Image
basics of structure:

at every origin of new structure is a swing point, either a swing high or low.

you can identify swing points easier through the use of 'williams fractal' indicator on tradingview. Image
confirmed breaks in structure:

sustained time spent above swing point (bullish break) without the ability for price to swiftly come back below the level.

market aggressor participants should still be active and quickly push price into an imbalanced state (trending).

I don't want to see CLOSES back below the level, especially when the delta is heavily against the break of structure.Image
Read 7 tweets
Sep 4
fair value gaps (imbalances)

a thread 🧵 Image
also known as:

- single prints
- gaps

the naming is meaningless, the core fundamental behind it is that there is a piece of price which price moved quickly through (one candle), relative to the time frame you look at. Image
first touches:

when price initially revisits this void it can act as a level where:

1. stops are triggered
2. traders attempt to trader for the fill (anticipate a move)

the edge then comes from being able to spot these traders at this initial touch and fade them. Image
Read 8 tweets
Aug 28
10 images on market movements & mechanics.

1. auction market theory Image
2. market dynamics Image
3. bid/ask Image
Read 10 tweets
May 16
footprint charts (a complete guide)

a thread 🧵 Image
footprint vs regular charts:

footprint charts are a cleaner visual of the time & sales data.

it places buy/sell info on a per cluster basis, inside the candle.

doing this allows for easier identification of high volume/delta zones, absorption & trapped traders. Image
tick sizes:

inside the footprint, the cluster is divided into price blocks. Changing the tick size changes the granularity of these price blocks within each cluster.

larger tick size for increased volatility, lower the tick size when less volatile. Image
Read 7 tweets

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