• What is it? it is basically money.
• Price is always looking to sweep the liquidity. Or run towards the liquidity.
• A lot of stop losses are resting at liquidity levels. Market is looking to take them out.
• A lot of the time we will see price taking out significant highs & lows before then running in the opposite direction.
• Buyside liquidity: Upper areas in the range overall upper ares; Sellside Liquidity: Lower areas; Here are the most stop losses.
• Buy and sell side liquidity price will look to seek them before running in other direction
• highs/lows swept = unlocking the liquidity
• internal liquidity: inside of the structure; external liquidity: outside of the structure
• Liquidity Grab = sweep of lows /highs
• Before there is a big move generally there is going to be stop hunt (sweep of highs & lows) right before that
• Participants keeping their stop losses above/below old swing highs / swing lows.
• When the liquidity grab happens, look for swept of the high that took liquidity out and a MSB. This is very important. Most people fail here. Because they go short/long leaving that high that took the liquidity out untapped. The high that led to liquidity sweep has to be broken for you to look at trading opportunities
• Price is driven to and from liquidity pools, therefore we’ll see the lows or highs taken out, with price then running in the opposite direction usually where sells or buys are then filled at the next liquidity pool with enough demand or supply to sustain or repel these moves.

Inducement

Trapped liquidity on prupse to mitigate the OB or sweep liquidity later.

INDUCEMENT = Trapped Liqudity