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

🧵(1/6) 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. 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

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with CryptoSoulz

CryptoSoulz Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @SoulzBTC

Oct 15
In this THREAD I will explain "Market Structure"

1. What is Market Structure?
2. Trends
3. Timeframes

🧵(1/11) Image
1. What is Market Structure?

Market structure = The ordered sequence of Swing Highs and Swing Lows.

This sequence defines trend direction and its shifts.

Uptrend: Higher Highs (HH) + Higher Lows (HL)

Downtrend: Lower Highs (LH) + Lower Lows (LL) Image
1.2 What is Market Structure?

Strong highs and lows are price levels that caused a change in market structure (Break of Structure)

Strong highs and lows are considered significant Support and Resistance levels Image
Read 11 tweets
Oct 4
In this THREAD I will explain “Basic Trading Indicators”

1. Volume
2. Market Profile
3. Heatmaps
4. VWAP

🧵(1/15) Image
1. Volume

Trading volume represents the total number of shares, tokens or contracts exchanged in a market within a specific period

High volume during suggests strong interest and validates the trend

Low volume indicates uncertainty or a potentially false signal Image
1.1 Volume

Delta Highlight mode shows data the traditional volume indicator doesn’t

Each node has two bars:

A darker bar behind = total market volume (buys + sells)

A brighter bar in front = net delta (buys − sells)

Shows who dominated and how strong the imbalance was Image
Read 15 tweets
Oct 1
In this THREAD I will explain “Order book”

1. Order book Heatmap
2. What is an Order book?

🧵(1/12) Image
1. Order book Heatmap

When is it bearish?

• Large sell clusters = limit asks

• Stacked sell walls overhead persist, repeatedly reject price

• Sell walls step down toward market (sellers chase lower prices)

• Bid-side below thin (“air pockets”) so dips accelerate Image
1.1 Order book Heatmap

When is it bullish?

• Large buy clusters = limit bids

• Stacked buy walls below absorb sells and hold levels

• Buy walls step up toward price (buyers chase higher → higher lows)

• Ask-side above is thin, so small buy flow lifts price quickly Image
Read 12 tweets
Sep 24
In this THREAD I will explain “Order Flow”

1. Footprint Charts
2. Open Interest
3. Market Profile

🧵(1/14) Image
1. Footprint Charts

One of the most important features incorporated into the Footprint candle is Delta.

Computes the net imbalance between buying and selling activity for every price in the candle.

A positive delta indicates that buyers are pushing the market. Image
1.1 Footprint Charts

Footprint charts reveal order flow by showing volume at each price level.

This chart shows buyers (green) vs sellers (red), total volume, and Delta (net buying/selling pressure)

Great for spotting absorption, imbalances, and key levels Image
Read 14 tweets
Sep 20
In this THREAD I will explain “Point of Interest”

1. FVG
2. Order Block
3. Breaker Block

🧵(1/16) Image
1. FVG

Fair Value Gap (FVG) is an inefficiency or imbalance on a price chart, typically formed by a three-candle sequence.

Where the market price moves too quickly, leaving an area with little to no trading activity. Image
1.1 FVG

A Fair Value Gap is bullish when it indicates a potential upward price movement due to a surge in buying pressure.

A bullish FVG is shown by a gap between:

The highest point of the wick of the 1st candle AND the lowest point of the wick of the 3rd candle Image
Read 16 tweets
Sep 14
In this THREAD I will explain “Fibonacci”

1. Fibonacci Retracement
2. How to draw Fibonacci Levels?
3. Fibonacci Extension

🧵(1/13) Image
1. Fibonacci Retracement

How to use Fibonacci Retracement

1. Identify Swing Highs and Lows

2. Retracement Levels (23.6%-76.4%)

3. Extension Levels (138%-161.8%)

4. Use Fibonacci Levels to find entries, exits and targets Image
1.1 Fibonacci Retracement

Fibonacci Retracements can be used to place entry orders, set price targets, or place SL orders.

Fibonacci Levels indicate where the price might find support or resistance

Fibonacci retracement levels: 23.6%, 38.2%, 61.8%, or 76.4% Image
Read 13 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(