Break of expectations is a perspective from which I look at market moves a lot of the time. Broken expectations manifest in the form of broken structures. It's the same thing, but just another way of looking at such moves which makes the liquidity story a bit clearer thereby inducing more confidence in taking trades off these zones. Obvious trend continuation...
I was back testing OANDA:GBPUSD and decided to share my thought on how I trade SMC rather it was a win, loss, or break even. Im using top down analysis, order blocks, liquidity, institutional order flow etc...
The concept around equal high liquidity comes from the understanding that stop losses hold above these points. In this example, price broke out of bullish structure and began to form bearish market conditions. This would of course attract sellers, especially at the double top point marked. The idea is simple, tackle the impulsive sellers before the trend...
Dollar gains on upbeat US Retail Sales data. Gold Slips from 1 month peak. Gold case study of last week action using Wyckoff method, Market structure, Liquidity concept and SnD.
If we see a pattern form that retail likes to trade, It is highly likely that this pattern may get manipulated. The reason these common patterns get manipulated is because of liquidity forming. Banks want to make sure they can create enough liquidity for themselves to get positioned nicely in the market. They do this by driving the price up/down into stop loss...
I'm going to do my best here at explaining the basics around a liquidity grab (some times called a stop hunt), why it happens and how it works (ignore the chart I'm using, I'm not saying this is a manipulated move just showing you an example of how it works) I often refer to this in my playbook as an STL "Sweep The Legs" coupled with a picture of Johnny Lawrence...
In this quick and easy lesson, I will break down the concept of liquidity. If you retain the thought that liquidity stands for an area where stop losses are you will grasp this concept quickly. We often see spikes into areas of liquidity before true moves continue, this is so that banks can capture as many orders as possible before they depart from the area.
Here are some questions I put out to my community group the other day followed by the answers. The reasoning being the move has been annotated on the chart. Why did price slowly decline prior to NFP? - Price had to decline slightly before NFP to mitigate the impulsive move created earlier in the day. - Price had to stop out break and re-test buyers with a tight...
The basics of Smart Money Concepts with an overview of market structure and liquidity.
The liquidity of a currency pair in other words is the ability to liquidate any amount you need (sell, for example) when you need it, without tangible loss of time and income. The higher the liquidity of the pair, the more reliable and attractive it is for trading. This implies that there is strong demand and high supply for this asset. The higher the liquidity...
Truly understanding 'why' the market moves through basic concepts of Liquidity This basic analytical overview is derived from the institutional methodology used at Phantom Trading. We use this institutional methodology commonly known as 'smart money concepts' in conjunction with additional pieces of confluence to utilise Liquidity around the factualities of the...
Mirroring the previous graphic based on the 'sell side' this graphic provides insight and annotates how institutions view and see the market based on the core concepts of Liquidity utilising the models around 'Premium vs Discount' The graphic shows key points where liquidity is manufactured around 'traditional retail methodologies' If and when you can...
Once you spot a location to trade from (be it a liquidity hunt, or a false breakout + market structure break) - that's only half of the job. The next most important step is to draw a correct zone which gives you a safe and reliable way to enter and define your risk. I've always found that drawing zones which help you define your entry & risk is an art, more so...
And now, for the current single name list: AAL (American Airlines) AAPL (Apple) ABBV (AbbVie) ACB (Aurora Cannabis) AEO (American Eagle Outfitters) AGNC (AGNC Investment) AMC (AMC Entertainment) AMD (Advanced Micro Devices) AXP (American Express) AZN (AstraZeneca) BA (Boeing) BABA (Alibaba Group Holdings) BAC (Bank of America) BB (Blackberry) BBBY (Bed Bath and...
Liquidity. Liquidity. Liquidity. Whether you're short strangling, iron condoring, laddering out short puts, or doing covered calls, having excellent options liquidity is the cornerstone of any options trade, and the universe of highly liquid options instruments is actually quite small relative to the smorgasbord of underlyings out there. I've posted my list of...
TO UNDERSTAND THE STOCK MARKET'S MOVEMENT, YOU MUST UNDERSTAND WHICH FACTOR IS THE MOST INFLUENTIAL: THE DOLLAR! IF THE FED HAS SUCCEEDED IN SATISFYING THE GLOBAL DOLLAR SHORTAGE, THE STOCK MARKET WILL CREATE NEW ALL-TIME HIGHS! IF THEY HAVE FAILED, ANOTHER WAVE OF ILLIQUIDITY WILL OCCUR!
THE EURODOLLAR FUTURES CONTRACT REFLECTS THE L.I.B.O.R. INTEREST RATE (A BENCHMARK FOR THE INTEREST RATE AT WHICH MAJOR BANKS LEND TO EACH OTHER)! WHEN THE PRICE OF THE CONTRACT INCREASES, THE L.I.B.O.R. INTEREST RATE IS DECREASING, WHEN THE PRICE FALLS, IT IS INCREASING! THE PERIOD I HAVE HIGHLIGHTED IN THIS POST IS THE PERIOD OF DOLLAR ILLIQUIDITY THAT OCCURRED...
APPLICATION OF ELLIOTT WAVE, SUPPLY N DEMAND, LIQUIDITY,TREND LINE, FIBONACCI n MEASURED MOVE Not enough space for wyckoff n chart pattern. Study it!!!, naked trading is posibble n as easy as custom indicator trading too