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

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
Sep 11
In this THREAD I will explain "Price Action"

1. SMC
2. POI
3. Liquidity

🧵(1/13) Image
1. SMC

Is a trading framework designed for retail traders to analyze and follow the actions of institutional players.

SMC focuses on:

- Liquidity Zones
- Market Structure
- Order flow Image
1.1 SMC

Categories of Smart Money in Crypto:

- Institutional Investors
- Market Makers
- Crypto Whales
- Algorithmic Traders
- Government and Regulatory Entities Image
Read 13 tweets
Sep 6
In this THREAD I will explain “Basic Trading Indicators”

1. MACD
2. Orderbook
3. Trend Bands
4. Volume Delta

🧵(1/15) Image
1. MACD

MACD indicator is used to identify trends, potential reversals and momentum in a given asset.

MACD consists of three main parts:

- The MACD line

- The Signal line

- The Histograms Image
1.1 MACD

MACD Crossovers signal momentum shifts:

Bullish Crossover: Blue line crosses above orange = potential uptrend

Bearish Crossover: Blue line drops below orange = potential downtrend Image
Read 15 tweets
Sep 1
In this THREAD I will explain "Market Structure"

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

🧵(1/15) Image
1. What is Market Structure?

Market Structure refers to the pattern of price movements over time, forming highs and lows.

In a bullish market, strong highs and weak lows indicate upward momentum.

In a bearish market, strong highs and weak lows signal downward movement. Image
1.1 What is Market Structure?

Types of Trends:

Bullish (Uptrend): Price consistently makes HH and HL, indicating upward momentum

Flat: Price moves within a range, indicating consolidation

Bearish (Downtrend): Price consistently makes LH and LL, showing downward momentum Image
Read 15 tweets
Aug 28
In this THREAD I will explain “Orderflow”

1. Footprint Charts
2. Market Profile

🧵(1/16) Image
1. Footprint Charts

A footprint chart is an advanced candlestick chart that displays the volume of trades (or number of transactions)

At each specific price level within a given time period.

This charts provide a deeper view of market activity by showing bid and ask volume Image
1.1 Footprint Charts

On the left side of the cluster chart are the sellers who were hitting the bid (sold)

The numbers on the right-hand side of the cluster chart show the buyers who lifted the order (bought) Image
Read 16 tweets
Aug 22
In this THREAD I will explain “Order Blocks”

1. What is an Order Block?
2. Bullish and Bearish Order Block
3. How to trade Order Blocks

🧵(1/12) Image
1. What is an Order Block?

An order block is a specific price area on a chart where large institutional orders were placed.

Leading to a significant price reversal or continuation of a trend. Image
Image
1.1 What is an Order Block?

Order Blocks have mainly 2 purpose:

- OB either take out the liquidity, by hunting below lows or above highs

- OB fill the liquidity by filling FVGs or testing already existing Order Blocks Image
Image
Read 12 tweets

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