Liquidity Grabs (Scalpers)
Liquidity Grabs (Scalpers)
Liquidity Grabs (Scalpers)
@solonetwrk
www.joinsolonetwork.com
Liquidity Grabs (Scalpers)
What is Liquidity:
Liquidity refers to how active a market is. It is determined by the amount of traders
trading and the total volume they’re trading. One reason the foregin exchange market is
so liquid is because it's a very deep market, with nearly $6 trillion turnover each day.
Liquidity is a settlement in the market where smart money is used to take out sellers /
buyers.
Smart money sees an area of money left in a pool where retail traders have seating.
This is the same concept of looking at Higher Highs, Lower Lows, S/R being respected.
How to spot Liquidity:
Spotting liquidity pools is actually quite simple. First lets go over what a settlement looks
like? Well a settlement is seen as Swing Highs , Swing lows in the market. These areas
are what can also be identified as liquidity pools.
Notice how each swing low respects a liquidity pool. These areas can be retested again.
Which is where all of the other structural strategies can come into play, such as
Support/Resistance, Supply/Demand, Major Key levels, instructional levels, Order
blocks etc…
Once we establish the market flow. Next we must look for imbalance within the rally
(impulsive wave). To have an idea of where price can pull back to before creating new
lows in the market.
Pay attention to how the market decided to pull back to an area of supply / imbalance .
Which can also be seen as a liquidity pool.
Once price hits that area of imbalance or supply / demand from the impulsive wave. You
are now able to look for your entries. Which is talked about in the Three Man Standing
concept.
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