CryptoSoulz Profile picture
Dec 6, 2023 6 tweets 3 min read Read on X
In this THREAD I will explain LIQUIDITY:

1. What is Liquidity?
2. Sell-side Liquidity
3. Buy-side Liquidity
4. Internal & External Liquidity

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1. What is Liquidity?

- Liquidity is basically sum of all orders at a specific price

- Liquidity is present at every high and low. Since, is where traders place buy, sell and stop orders

- Liquidity is used by smart money to fill gaps on the market Image
2. Buy-side Liquidity:

- Liquidity generated when SL are taken out.

Areas where Buy-side liquidity rests:

• PWH, PDH, Equal Highs, Above HTF resistance…
Image
Image
3. Sell-side Liquidity:

- Is the liquidity generated when buy-stops are triggered below support.

Areas where Buy-side liquidity rests:

• PWL, PDL, Equal lows, Below HTF Support…
Image
Image
4. Internal & External Liquidity:

- Internal Liquidity: Is the liquidity inside the define range

- External Liquidity: Buy-side liquidity above the range high and sell-liquidity below the range low.

- Market moves essentially between Internal and External Liquidity. Image
I hope this THREAD has helped you to understand the extense concept of LIQUIDITY.

It's a needed knowledge you must have.

This has been the SECOND THREAD I made about Liquidity.

RT and FAV to spread this THREAD is appreciated

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More from @SoulzBTC

Dec 11
In this THREAD I will explain “Price Action”

1. Pullback
2. Fibonacci Levels
3. Breakout and retest

🧵(1/11) Image
1. Pullback

A pullback is a short-term dip or decline in the price of an asset that is otherwise in an upward trend

Is a price correction that occurs within the framework of a bigger trend Image
1.1 Pullback

Are very useful for trend confirmations

If the price keeps forming pullbacks after bullish impulses, market is in a bullish bearish trend.

A formation of pullbacks after bearish legs confirms that the market is trading in a downtrend. Image
Read 11 tweets
Dec 9
In this THREAD I will explain “Basic Trading Indicators”

1. RSI
2. Moving Average
3. Volume Profile

🧵(1/16) Image
1. RSI

RSI analyses the Price Action over a specific time period and displays a score between 0 and 100.

RSI is a lagging indicator.

Analyses the past price movements and not predicts the futures ones Image
1.1 RSI

RSI above 70 is an overbought condition of the asset

RSI below 30 is an oversold condition of the asset

For an extra confirmation, look for RSI divergence:

When the price action and indicator move in the opposite direction. Image
Read 16 tweets
Dec 6
In this THREAD I will explain "Liquidity"

1. What is Liquidity?
2. Liquidity Zones
3. Liquidity Run
4. Liquidity using Fibonacci

🧵(1/14) Image
1. What is Liquidity?

- Liquidity is basically sum of all orders at a specific price

- Liquidity is present at every high and low. Since, is where traders place buy, sell and stop orders

- Liquidity is used by smart money to fill gaps on the market Image
2. Liquidity Zones

Liquidity zones are areas in the market where significant buying or selling activity occurs, often leading to sharp price movements.

There are several Liquidity Zones, which I'm about to explain to explain. Image
Read 14 tweets
Dec 3
In this THREAD I will explain "Market Structure"

1. Bullish MS
2. Gaps
3. Fibonacci
4. Timeframes

🧵(1/13) Image
1. Bullish MS

Market structure can help you understand the behavior and trend of the price.

A Bullish MS is defined by a series of Higher Highs (HH) and Higher Lows (HL)

The trend continues in the same direction until the asset price records a Lower Low (LL) Image
1.2 Bullish MS

When identifying a bullish market structure, use different timeframes.

If 1D-4H and 1H TF concur that the trend is bullish, take a long position.

The following example has a defined bullish structure Image
Read 13 tweets
Nov 30
In this THREAD I will explain "Price Action"

1. Supply and Demand
2. Breakout and Retest
3. Trendlines
4. Orderblock

🧵(1/12) Image
1. Supply and Demand

In a Supply zone, there is an excess of sellers, causing the price to drop. This occurs when supply exceeds demand.

In a Demand zone, there is an excess of buyers, causing the price to rise. This occurs when demand exceeds supply. Image
1.1 Supply and Demand

Identifying Supply and Demand zones is important because they can indicate potential areas of Support or Resistance

- Look for areas where the price has stalled or reversed

- Identify price levels where the price has reversed multiple times Image
Read 12 tweets
Nov 26
In this THREAD I will explain "Liquidity"

1. Where is the Liquidity?
2. BOS
3. Liquidity Sweep
4. Types of Liquidity

🧵(1/14) Image
1. Where is the Liquidity?

To spot liquidity, you need to know which trend the market is following.

In a downtrend = Liquidity is found on the UPPER SIDE of the chart

In a uptrend = Liquidity is found on the LOWER SIDE of the chart Image
1.1 Where is the Liquidity?

Liquidity is a MAGNET

1. Price will gravitate to fill the imbalances

2. For scalping use IMBALANCES as Support and Resistance

3. Find imbalances on HTF and scale to LTF

4. Find Imbalances in 4H -> Trade the 1H chart Image
Read 14 tweets

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