All language subtitles for 06-Liquidity Pools - A-Z Guide Episode 6 - English

hello everyone hope you're doing all

right welcome back to this video we are

going to be touching on liquidity pools

a very interesting topic and this is

very important for you to understand

because this is the basics of why our

strategy works and how the market

operates again just a little reminder if

you have watched one ICT series and

Romans for my master class are opening

up tomorrow very limited spots so I

mentioned in the beginning that the A to

Z guide is for advanced Traders as well

and if you don't think that the A2Z

guide is for advanced Traders you are

absolutely wrong and I don't mean that

in a rude way but this A to Z guide is

just as much for advanced Traders as it

is for beginner Traders because if you

watch these videos multiple times you

will find certain golden nuggets that

most likely only Advanced Traders will

pick up on so if you're a beginner

that's great watch the videos but maybe

watch it a couple times and when you are

further on your journey to becoming a

profitable Trader maybe watch the videos

again and then you'll pick up on new

things alright now let's get into it

right here so liquidity pools what are

liquidity pools well above highs what

are above a highs above highs there are

breakout trailers that are trying to buy

price above ice breakout Traders so when

price breaks out above a high they are

trying to buy it with a buy stop but

there are also stop losses of people

that are short in the market both the

stop losses and the breakout trailers

use buy stops so above price above

market price so for example Mark Price

is here above it are buy stops and below

it are sell stops so if we we know that

that makes up liquidity and now we need

to find out how does the majority of the

market trade the majority of the market

the majority of Traders never gets past

the simple patterns right they never get

past the support and resistance the

trend lines The Head and Shoulders

patterns again there's nothing wrong

with it because people are profitable

with these patterns but I'm just trying

to tell you majority of the people

majority of the Traders trade like that

and they are most of the time referred

to as retail Traders now a retail Trader

we are also retail Traders obviously but

retail Concepts or some people call them

I don't like to call them that but they

call them dumb money Concepts but again

that's something we can touch on later

on now if there needs to be a buyer for

every seller and there needs to be a

seller for every buyer who is actually

providing that liquidity well

if we know majority of the people have

sell stops right here below Lowe's then

central banks big institutions Etc their

orders will get filled below these lows

because their orders are so big they

need some sort of liquidity to get into

the market so for all the sell stops

there will be buyers on the other side

so right here

once we do this

and we come below a low below a

consolidation or whatever I'll give you

some real chart examples just in a few

moments right here institutions central

banks are buying those orders and

obviously the sell-stop Traders right

here the stop losses or the breakout

Traders are now trapped so now if we

want to take profits on those buys

because central banks institutions Etc

they have just bought then who can we

actually sell to well we need someone

that is willing to buy our positions so

we need liquidity again where is the

liquidity above the highs we now need

buy stops and above these highs is

exactly where central bank's

institutions are willing to take profit

so they are willing to sell to buyers

who is the buyer here well above a

height you'll typically see breakout

Traders but also you'll see stop classes

of people that were short in the market

so both of those positions are buy stops

so we are selling to buy stops so right

here we are able to take profit not we

the central banks and institutions are

able to take profit now of course you

need to understand central banks and

institutions are not aiming for your

liquidity they are not aiming for your

two lots that you put into the market

absolutely not they are aiming for huge

funds for example you will hear the name

Turtle soups what is a turtle soup how

was turtle soup invented do you recall

and maybe Google it there is a book The

Turtle Traders those Traders are called

Turtle Traders and they mainly follow

the trend so huge funds Etc they mainly

follow Trends they are Trend followers

when the trend changes they are hurting

they are bleeding but when the trend

continues Etc they are mainly correct in

their analysis those huge funds that are

turtle Traders so they follow a trend

like this what does this make

a liquidity sweep AKA a turtle soup that

is where the name turtle soup comes from

so a turtle soup is a sweep of the

turtle Traders alright now this is the

basics the absolute Basics and the

Necessities that you need to understand

liquidity and to understand these

liquidity pools because obviously we can

trade this but we need some sort of

logic behind it because also that will

Comfort us when we have some sort of

logic behind stuff our rational mind

likes it more that's why a lot of people

are here in the first place that's why a

lot of people are trading SMC in the

first place because we need some sort of

logical explaining for everything and

that is also detrimental let me tell you

that is not always a good thing

especially not in trading and again like

I said right when you are placing a

trade into the market so you are trading

on your broker and and you're placing

your two lots into the market you're

buying with two lots you are not

actually being targeted by by the

central banks or buy the liquidity or

Hunters we can call them no and we don't

actually need a lot of opposite

liquidity to get out of the market as

well or to buy or to sell because we are

very small we are very very very small

but again that's something we'll dive

into deeper later on so let's dive into

some real chart examples and how can we

actually use this to our advantage

alright so if we take a look right here

what do we see well we see some sort of

resistance right here right we have if

we are now thinking as retail Traders or

retail concept Trader so support and

resistance and trend line Traders mainly

then right here we have resistance and

we have some sort of support at the

bottom right here so this should hold a

support this support is now resistance

right here

so what is below this below this line

there are cell stops those sell stops we

or central banks and institutions can

buy those sell stops right here they are

getting bought where is now the opposite

liquidity

the opposite liquidity is above these

highs buy stops so if we want to profit

off of these buys right here well we

will Target

opposite liquidity we have bought we are

willing to sell above these highs we are

willing to sell so we have a seller now

we need a buyer who is willing to buy

buy stops above debt resistance again

that is people that were short here or

even short right here when this turned

into resistance with your stop loss

right here above this resistance that

stop loss is a buy stop and willing

breakout Traders so then right here

again what are we targeting even further

well we have a relatively equal highs

right here this is also resistance or

support and resistance Traders so again

their stop loss might be above it and we

have breakout Traders above it there is

liquidity above it then right here if we

take a look at this we have some sort of

trendline liquidity here right trendline

liquidity and what do we have right here

we have a high a above a high what's

above a high there is liquidity so here

above a high we are tricking in buy

stops those buy stops who is willing to

sell

we are we are willing to sell or those

buy stops and then now we are in a short

position what do we need next if we are

short and we are going lower we want to

because that's the mechanics how it

works we want to buy at a lower price

eventually alright so what is this this

right here is support what is below it

sell stops so we can pair ourselves with

cell stops

so we are able to take profit again this

might be a little bit overwhelming so

re-watch it a couple times and once you

do dive into the charts on your own then

this will make more sense and then you

can see what are we now targeting this

trendline liquidity there are willing

buyers at the trendline liquidity so we

take that trendline liquidity out all

the stop losses are right here beneath

those lows that's where liquidity is and

that's where we target all right now

this is all all right now this is all

fun but how can we actually apply this

to our trading so let's take a look at

how we can actually use this in our

trading all right so if we take a look

again at this example that we've used

before on docs right here we had this

monthly order block right here then if

we drop down into the four hour we had

this breaker right here what do we have

here we have relatively equal lows they

get the webs before we have the real

move now when we retrace into the

breaker what are we leaving behind we

have relatively equal highs right here

and we have relatively equal highs right

here

those can be used as Target or our

traits and as extra confluences because

in trading we are stacking up

confluences all the time then if we drop

down into the five minutes in that four

hour breaker what do we actually see

before we tap into the four hour breaker

we take liquidity then the next thing we

are doing we have right here we have

equal highs we are taking them then

right here what do what is above Price

Right Here equal highs relatively equal

highs where do we target right there

relatively equal highs get taken now I

want you to understand this is very

important because this is a mistake I've

made in the past as well just because

there is equal highs just because there

is trendline liquidity doesn't mean

price has to go there immediately that

is the wrong mindset just because we

have equal lows right here doesn't mean

price has to now trade back into it so

for example right here we had this

liquidity right this is the

consolidation eye right here we have a

lot of consolidation that are willing

breakout Traders above consolidations

and below consolidations

so price will very often take one side

of the consolidation first and then

Target the opposite side of the

consolidation now if we take one side of

the consolidation doesn't mean we can

instantly Target the opposite side no we

need a reaction first we need some sort

of sign that price is telling us yes we

want to Target the opposite side and it

is very important to understand that

this is done on the higher time frame so

if you're only trading liquidity pools

on the lower time frame you will confuse

the absolute out of yourself so

right here we are taking the highs of

the consolidation right

breakout Traders are trapped stop losses

are taken we are in a short position now

if central banks and institutions are

truly selling above those highs then

they will not stay above those highs

very long so we will see

displacement to the downside

and that is very important and the same

goes or if we are taking liquidity so

for example this low if we are taking

liquidity below that low and

institutions and central banks they are

yes they want to get involved and

obviously price will not stay below that

low very long because their orders are

so big so price will instantly move

these orders these cell stops will

instantly get bought boom just like that

so we need to have some sort of

rejection

right here we have a rejection and then

we can Target the opposite side and that

is very important to understand and a

lot of people do not pay attention to

that and they are just they think a

highest getting taken and they are just

shorting right here price is going

higher and they are still short short

and they are just taking loss after loss

after loss after loss right here and

another loss and price is just going

higher it isn't even showing signs of

weakness and it's just going higher and

people are just taking losses after loss

after loss after loss and that's not the

right way to approach this we need to

have a logic behind what we're doing and

if institutions are truly selling above

highs then price will not stay long

above those highs and again you need to

understand right I'm making sort of a

story right here so I just told you that

just because there's liquidity on the

opposite side doesn't mean we are going

to targeted immediately and then I just

told you that if we are truly selling

above highs and buying below loathe we

need some sort of reaction they are in

harmony with each other because when we

get that reaction we can truly Target

opposite side and then we can truly

Target opposing liquidity as in we can

truly Target this trendline liquidity

now because we have seen a reaction away

when we swept a low very important to

understand always react always React to

what price is doing alright now the last

thing I want you to understand is a

liquidity sweep is different than a

liquidity run a run on liquidity is when

we will continue lower so for example if

we take a look right here above this

High we just saw a sweep

The Sweep is when we sweep liquidity

right here above the highs and Target

opposing liquidity now a run on

liquidity

is when we keep running so we don't

sweep we just keep going lower so right

here we have liquidity on the lows So

Below the lows are liquidity we keep

running we are not sweeping we are

running the liquidity right there so

it's going down and it's going to keep

going down when we are running liquidity

all right you are going to need to watch

this video multiple times to understand

it and you are going to need to

absolutely do the work on your own as

well so after this video study equal

highs equal lows trendline liquidity

study head and shoulder pattern so look

up the patterns and see how price is

absolutely being manipulated and see how

we are moving from one liquidity pool to

the next liquidity pool and in between

those liquidity pools what do we see a

breaker we see thumb form of PD erase

that we went over we see them holding

right here until we take out the posing

liquidity pool

so again do the work and you will

understand it a hundred percent

completely no worries it just takes time

again a reminder if you are a bit more

advanced already than the enrollments or

my mouse gloss are open right now so

check that out if you are interested and

I'll see you at the live stream on

Sunday and if not then I'll see you on

Tuesday at the next video on the A2Z

guide alright thank you

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