II -> Liquidity - Ranges
Welcome to the second phase of liquidity, you have clearly covered some good ground already and are understand the general concepts well. Lets recoup a little before we go into the concept of your data range. Our focus is now building bias, and how we do so by using the daily time frame.
————-- 021 - Liquidity data range
We expect our daily time-frame to be the most important one, as that will be the timeframe to highlight what our most important draw on liquidity is.
Its our focus to find out where price will be run to in the next trading session/days. Therefore we expect price to expand into that direction.
Lets imagine we have a bearish structure, and price reacts from a bearish PDA, We now anticipate that the daily expansion will be in the same direction of the daily draw on liquidity.
Once that is cleared out, we can expect the session time-frames to deliver up until that DOL is reached.
SUMMARY :
- Daily timeframe will highlight our most probable DOL
- Keep in mind we don't need to look at bullish/bearish closure
- You can catch intra-day expansions which are in sync with your DOL
- We literally just need the direction during the expansions throughout the day
- Dead-time remains relevant as we go into late NY session and London close
So where does liquidity lie on our daily tf?
We must understand the whole factor behind it all, behind the system, and notice all other liquidity pools that price will be drawn to. Therefore we often dumb it down and look simply at a fixed liquidity range:
These ranges are fractal, to make it simple for yourself.
Liquidity ranges are subjective to your own preference, but there is a sense of fractality to them.
if you have a range of 15 days, you take into account roughly 10 good trading days... Your next range would be 30 days, and then 45.
My personal preference is:
20 -> 40 -> 60 in liquidity ranges.
This allows me to fit a good chunk of data in my first parameter where I included at least two weeks of trading days. which covers majority of the data releases as well etc...
————-- 022 - Liquidity Data Range Example
To make it simple for yourself, make a rectangle on your trading view, of 20 bars on your daily timeframe, and you can keep shifting that to the right.
Lets run through an example:
Price reacts from a bullish PDA, our next day bias will be bullish targetting BSL.
Our main buyside draw on liquidity is then within the last liquidity range.
https://www.tradingview.com/x/N2EiMmgm/
As such.
These are all the local highs within the 20 day liquidity range.
https://www.tradingview.com/x/fMAXznUz/
What happens next ?
We tap into another significant level. Buyside liquidity
Now once again notice the most recent SSL targets in that liquidity range.
https://www.tradingview.com/x/HUx5DRzu/
And voila
https://www.tradingview.com/x/rxhacQnv/
After a bit of compression we reach a significant level again, we induce the previous monthly low.
And now? what happens, our BSL targets are our focus in the liquidity range.
https://www.tradingview.com/x/LNSuHxmQ/
You get the gist of it.
————-- 021 - Liquidity data range
We expect our daily time-frame to be the most important one, as that will be the timeframe to highlight what our most important draw on liquidity is.
Its our focus to find out where price will be run to in the next trading session/days. Therefore we expect price to expand into that direction.
Lets imagine we have a bearish structure, and price reacts from a bearish PDA, We now anticipate that the daily expansion will be in the same direction of the daily draw on liquidity.
Once that is cleared out, we can expect the session time-frames to deliver up until that DOL is reached.
SUMMARY :
- Daily timeframe will highlight our most probable DOL
- Keep in mind we don't need to look at bullish/bearish closure
- You can catch intra-day expansions which are in sync with your DOL
- We literally just need the direction during the expansions throughout the day
- Dead-time remains relevant as we go into late NY session and London close
So where does liquidity lie on our daily tf?
We must understand the whole factor behind it all, behind the system, and notice all other liquidity pools that price will be drawn to. Therefore we often dumb it down and look simply at a fixed liquidity range:
These ranges are fractal, to make it simple for yourself.
Liquidity ranges are subjective to your own preference, but there is a sense of fractality to them.
if you have a range of 15 days, you take into account roughly 10 good trading days... Your next range would be 30 days, and then 45.
My personal preference is:
20 -> 40 -> 60 in liquidity ranges.
This allows me to fit a good chunk of data in my first parameter where I included at least two weeks of trading days. which covers majority of the data releases as well etc...
————-- 022 - Liquidity Data Range Example
To make it simple for yourself, make a rectangle on your trading view, of 20 bars on your daily timeframe, and you can keep shifting that to the right.
Lets run through an example:
Price reacts from a bullish PDA, our next day bias will be bullish targetting BSL.
Our main buyside draw on liquidity is then within the last liquidity range.
https://www.tradingview.com/x/N2EiMmgm/
As such.
These are all the local highs within the 20 day liquidity range.
https://www.tradingview.com/x/fMAXznUz/
What happens next ?
We tap into another significant level. Buyside liquidity
Now once again notice the most recent SSL targets in that liquidity range.
https://www.tradingview.com/x/HUx5DRzu/
And voila
https://www.tradingview.com/x/rxhacQnv/
After a bit of compression we reach a significant level again, we induce the previous monthly low.
And now? what happens, our BSL targets are our focus in the liquidity range.
https://www.tradingview.com/x/LNSuHxmQ/
You get the gist of it.
————-- 021 - Liquidity data range
We expect our daily time-frame to be the most important one, as that will be the timeframe to highlight what our most important draw on liquidity is.
Its our focus to find out where price will be run to in the next trading session/days. Therefore we expect price to expand into that direction.
Lets imagine we have a bearish structure, and price reacts from a bearish PDA, We now anticipate that the daily expansion will be in the same direction of the daily draw on liquidity.
Once that is cleared out, we can expect the session time-frames to deliver up until that DOL is reached.
SUMMARY :
- Daily timeframe will highlight our most probable DOL
- Keep in mind we don't need to look at bullish/bearish closure
- You can catch intra-day expansions which are in sync with your DOL
- We literally just need the direction during the expansions throughout the day
- Dead-time remains relevant as we go into late NY session and London close
So where does liquidity lie on our daily tf?
We must understand the whole factor behind it all, behind the system, and notice all other liquidity pools that price will be drawn to. Therefore we often dumb it down and look simply at a fixed liquidity range:
These ranges are fractal, to make it simple for yourself.
Liquidity ranges are subjective to your own preference, but there is a sense of fractality to them.
if you have a range of 15 days, you take into account roughly 10 good trading days... Your next range would be 30 days, and then 45.
My personal preference is:
20 -> 40 -> 60 in liquidity ranges.
This allows me to fit a good chunk of data in my first parameter where I included at least two weeks of trading days. which covers majority of the data releases as well etc...
————-- 022 - Liquidity Data Range Example
To make it simple for yourself, make a rectangle on your trading view, of 20 bars on your daily timeframe, and you can keep shifting that to the right.
Lets run through an example:
Price reacts from a bullish PDA, our next day bias will be bullish targetting BSL.
Our main buyside draw on liquidity is then within the last liquidity range.
https://www.tradingview.com/x/N2EiMmgm/
As such.
These are all the local highs within the 20 day liquidity range.
https://www.tradingview.com/x/fMAXznUz/
What happens next ?
We tap into another significant level. Buyside liquidity
Now once again notice the most recent SSL targets in that liquidity range.
https://www.tradingview.com/x/HUx5DRzu/
And voila
https://www.tradingview.com/x/rxhacQnv/
After a bit of compression we reach a significant level again, we induce the previous monthly low.
And now? what happens, our BSL targets are our focus in the liquidity range.
https://www.tradingview.com/x/LNSuHxmQ/
You get the gist of it.
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