DogeStonks

Educational Series - Smart Money Concepts ( Liquidity )

Education
DogeStonks Updated   
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Hi there guys!

I will be doing a short tutorial on Smart Money Concept's liquidity.

What is it?
- Liquidity acts as a driver to move the market in a specific price range.
- We can find liquidity in areas where many people place stop losses and buy/sell stops.
- Market makers will manipulate the price in order to break through these obvious zones and seize the liquidity.

How to look for them
- You will be looking for areas where price are of relative equal highs/lows.
- Areas where price has not gone to swept the "stop losses"

Why is it useful?
- Helps to forecast where price might potentially head to
- Potential areas for take profits upon clearing of liquidity
- Avoid placing your stop loss at liquidity areas

It takes some time to learn how to spot liquidity.

If you do enjoy this tutorial, feel free to follow me and boost this post! :)

Regards,
Chen Yongjin
Comment:
Feel free to message me if you guys need some help :)

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