CryptoSoulz Profile picture
Dec 6 6 tweets 3 min read Twitter logo Read on Twitter
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…
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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…
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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 7
In this THREAD I will explain LIQUIDITY:

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

🧵(1/7) 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
- HTF resistance Image
Read 7 tweets
Nov 29
In this THREAD I will explain LIQUIDITY:

1. What is Liquidity?
2. How to measure Liquidity?
3. Sell-side Liquidity
4. Buy-side Liquidity
5. Stop hunts

🧵(1/7) Image
1. What is LIQUIDITY?

"Liquidity" is the ease with which an asset can be bought or sold in the market without causing a significant impact on the price.

Liquidity is influenced by factors such as trading volume, order book size, and the number of market participants. Image
2. How to measure Liquidity?

1. Computing the number of tokens bought/sold in a particular market during a certain TF.

2. Ask spread. Bid-ask spread is obtained by computing the difference between the buyers highest bid price and the sellers lowest ask. Image
Read 7 tweets
Nov 29
In this THREAD I will explain LIQUIDITY:

1. What is Liquidity?
2. How to measure Liquidity?
3. Sell-side Liquidity
4. Buy-side Liquidity
5. Stop hunts

🧵(1/7) Image
1. What is LIQUIDITY?

"Liquidity" is the ease with which an asset can be bought or sold in the market without causing a significant impact on the price.

Liquidity is influenced by factors such as trading volume, order book size, and the number of market participants.
Image
Image
2. How to measure Liquidity?

1. Computing the number of tokens bought/sold in a particular market during a certain TF.

2. Ask spread. Bid-ask spread is obtained by computing the difference between the buyers highest bid price and the sellers lowest ask. Image
Read 7 tweets
Nov 27
In this THREAD I will explain ICT BASIC CONCEPTS:

1. Liquidity
2. Displacement
3. Market Structure Shift
4. Inducement

🧵(1/7) Image
1. Liquidity:

Two types of liquidity;

Buy-side liquidity: Level on the chart where short sellers will have their SL positioned

Sell-side liquidity: Level on the chart where long buyers have their SL positioned

These levels are often classified as tops and bottoms of ranges.

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2. Displacement:

Displacement will appear as a single or a group of candles that are positioned in the same trend.

These candles normally have large bodies and very short wicks, suggesting a clear TREND between BUYERS and SELLERS.

Formed by a strong buying/selling pressure.

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Read 7 tweets
Nov 23
In this THREAD I will explain PRICE DELIVERY:

1. Expansion
2. Retracement
3. Reversal
4. Consolidation

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1. Expansion:

Significant increase in the price of an asset, typically accompanied by increased bullish volume.

Price expansion signals changes in market sentiment, trends, or the potential for a new market phase.

After consolidation, price makes new highs and changes trend.
Image
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2. Retracement:

Is a temporary reversal in the direction of a trend.

It's a short-term pullback or correction in the price of an asset. Represents a short-term movement against the prevailing trend.

To identify reversals use this indicators: Fibonacci retracement, CVD or RSI.
Image
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Read 6 tweets
Nov 22
In this THREAD I will explain PO3 and how to trade it:

1. Accumulation, Distribution and Manipulation
2. Bearish PO3
3. Bullish PO3

🧵(1/7) Image
1. Accumulation:

Accumulation is a phase in the market where smart money or institutional investor are buying

During accumulation, the price is relatively stable, creating an impression of little activity. Behind the scenes, investors are accumulating.

High bullish volume.
Image
Image
1.2 Distribution:

Smart money start selling their accumulated positions, after making new highs.

During distribution, the price may exhibit weakness or struggle to move higher, after a big uptrend. Volume might increase, but price progress is limited or declining within time.
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Read 7 tweets

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