---
title: 'Boost Your Trading Profits with Easy Liquidity Tricks'
source: 'https://youtube.com/watch?v=cdqRcYkrr_A'
video_id: 'cdqRcYkrr_A'
date: 2026-08-01
duration_sec: 1004
---

# Boost Your Trading Profits with Easy Liquidity Tricks

> Source: [Boost Your Trading Profits with Easy Liquidity Tricks](https://youtube.com/watch?v=cdqRcYkrr_A)

## Summary

This video teaches a four-step liquidity trading strategy used by professional traders, focusing on how large players target stop-loss clusters. It explains how to identify break-off structures, supply/demand zones, and liquidity levels, then enter trades with limit orders and a 1:2 risk-reward ratio. The tutorial also covers an advanced version using minor and major zones.

### Key Points

- **Introduction to Liquidity Strategy** [00:00] — The video reveals a powerful liquidity strategy said to be used by professional traders, simplified for beginners.
- **What is Liquidity** [00:42] — Liquidity refers to areas where pending orders are placed in the market, created by traders placing buy and sell orders at specific price levels.
- **Why Stop-Losses Get Hit** [01:51] — At obvious support levels, many traders place longs with stop-losses below; professional traders deliberately target this resting liquidity, causing wicks that trigger stop-losses.
- **Best Timeframes and Markets** [03:31] — The strategy works best on 5-15 minute charts and applies to Nifty, Forex, crypto, and stocks.
- **Four Interconnected Steps** [03:44] — The strategy is broken into four simple, interconnected steps that cannot be skipped.
- **Step 1: Break-off Structures** [03:58] — Trends form via higher highs/lows in uptrends and lower highs/lows in downtrends; a break-off structure occurs when price breaks a previous high/low and makes a new one.
- **Valid Breakout Criterion** [05:11] — A candle must close above the previous high for a valid breakout; a wick crossing is not enough.
- **Step 2: Supply and Demand Zones** [05:24] — Supply/demand zones are areas with large numbers of buy/sell orders; find the starting point of the sharp move that created the break-off structure and mark the last candle before the move.
- **Step 3: Finding Liquidity Levels** [06:48] — Liquidity levels are areas with many stop-loss orders, such as double bottoms, triple bottoms, and repeated rejections; these become targets for liquidity sweeps.
- **Liquidity Sweep Mechanism** [07:30] — In an uptrend, price typically sweeps liquidity below a level above the demand zone, then bounces back to the demand zone for a long entry.
- **Step 4: Entering the Trade** [08:36] — Place a limit order above the demand zone, stop loss slightly below, and take profit at twice the stop-loss distance (1:2 R/R) or at the previous high.
- **Advantage of Limit Orders** [09:18] — Limit orders allow you to set entry, stop, and target in advance so you don't need to watch the chart all day.
- **Rule-Based Approach** [09:44] — The strategy focuses on key rules (liquidity near supply/demand zones) rather than exact price movements, similar to trading a triangle pattern.
- **Second Example: Short Setup** [10:36] — In a downtrend, identify a break-off structure, mark the supply zone, find liquidity below it, then enter a short with a limit order below the supply zone.
- **Timeframe Recommendation** [12:20] — The preferred timeframe for small traders is 5 to 15 minutes, and the strategy works in any market.
- **Advanced Setup Introduction** [12:46] — An advanced version uses a minor demand/supply zone formed by a second break-off structure as the liquidity level.
- **Major vs Minor Zones** [13:27] — A major zone is formed by a large pronounced price swing; a minor zone comes from a small, short-term move.
- **Ideal Advanced Setup** [13:54] — A minor demand zone sitting directly above a major demand zone provides a valid liquidity setup; enter long when price sweeps the minor zone and bounces off the major zone.
- **Advanced Short Example** [15:16] — The same logic applies in downtrends: a minor supply zone below a major supply zone is used as liquidity, with entry on a sweep.

## Transcript

Hello friends. In this video, I 'll reveal a powerful liquidity strategy . And friends, this is the exact same strategy used by professional traders. This
strategy is a little complicated, but I've made it simple enough that anyone, even complete beginners, can easily understand it. So, friends, if you want to learn the strategy that professional traders actually use, this
is the strategy. Let's delve deeper. This strategy is liquidity? Simply put, liquidity is the areas where
pending orders are placed in the market. Let's understand this with a practical example . Suppose you're looking at a chart and decide to buy at a particular price level. What are you actually doing here? You're
providing liquidity to the market at that price level. You're basically telling the market that you 're ready to buy at this exact price. This principle also applies when you place a sell order. By placing a sell order, you're telling the market that you
're ready to sell this asset at this price. This creates liquidity at that level as well . In most markets, liquidity exists at every price level because millions of traders are constantly placing buy and sell orders at different prices
. The retail traders placing the orders can be large banks or financial institutions. So, at any given point in the market, there's always someone buying and someone selling their asset
. This is the entire concept of liquidity, and it's what keeps the market moving every day, at all times. However, there are certain price levels where there's more liquidity than at other price points. For example
, consider a support level on the chart from which the price has bounced twice. As soon as the price approaches that level again, what do you think most traders will do upon seeing this setup? Obviously, they
'll expect another bounce off this line. So they'll take a long position right at the support zone and place their stop loss just below it. If they're a little more cautious, they might place their stop loss a little lower so it's not so easily hit.
Now, you've probably experienced this before. Instead of bouncing, the price forms a wick below the support zone , and this wick is so long that your stop loss is triggered. The price reverses from there and
moves back up, taking you out of the market. So, you're left wondering why your setup failed. Friends, this happens because professional traders, with very large capital, deliberately target the resting liquidity below this support zone
. They know that many retail traders like you are watching for this pattern and placing their stop losses in this zone. When this happens, hit those stop-losses and
absorb the liquidity needed to cover their own long positions. That's why you often see the price make a demand below the key level before reversing. Meaning, it creates a wick. So, I'm going to teach you how to be among the 1% of traders who
take advantage of this so you don't end up like the 99% who get their stop-losses hit by big players and kick them out of the market. And for your information, this strategy works best in
shorter timeframes, between 5 and 15 minutes, and can be used in any market, be it Nifty, Forex, crypto, or stocks. So, let's begin the video. To simplify things,
I'll break this strategy down into four simple steps that you can easily follow . Keep in mind that all these steps are interconnected. This means you can't skip any one step and proceed directly to the next. So
let's get started. Step one is to identify price break-off structures. To do this, we must first understand how trends are formed. We all know that there are two types of trends in the market: uptrends and downtrends
. For example, let's take an uptrend. During an uptrend, The market rarely moves straight up. Instead, the price moves in a structured manner, called higher highs and higher lows. On the other hand,
during a downtrend, the structure you'll see is the price making lower highs and lower lows . In an uptrend, whenever the previous high is broken and the price makes a new higher high, we call it a break-off structure. Similarly, in a downtrend,
whenever the previous low is broken and the price makes a new lower low, we also call it a break-off structure. Now that you have an idea of ​​what a break-off structure is, the price is making higher highs and higher lows, which is indicative of an uptrend.
To find a break-off structure, we simply look at the point when the price crosses above the previous high and makes a higher high, which is where it is. This becomes our break-off structure. Now, it's important to wait for a candle to close above its previous high
. Only if this happens will it be considered a breakout of the structure. A candle must close above the previous high. If only its tail or wick crosses above it, it cannot be considered a breakout of the structure. Now, once you
've identified a breakout of the structure, we can proceed to step two. Step two is to identify the supply or demand zone. Supply or demand zones are areas where the market already has a large number of buy or sell orders
. Whenever the price enters these zones, it can expect a significant upward or downward move. The easiest way to find these zones is to first find a breakout of the structure, which we did in the first step
. Next, we need to find the starting point where the sharp price move began and gave rise to the breakout of the structure. The area immediately before the sharp upward move is called the demand zone. Similarly,
in a downtrend, the area before the sharp decline that gave rise to the break-off structure is called the supply zone. Now, let's return to our original example. Since we've already identified the break-off structure,
finding the demand zone becomes a little easier. We find the area immediately before the sharp move that gave rise to the break-off structure. In this case, the price began its sharp upward move from this point.
To mark the demand zone, highlight the last candle just before that sharp move. Use the Rectangle tool to draw a zone from the candle's low to its high. This area becomes our demand zone. Now that we've
identified a demand zone, we move on to step three: finding a liquidity level. This step is the most important step in our entire strategy. Simply put, liquidity levels are areas where a large number of stop-loss orders are
placed . Examples of liquidity levels include double bottoms, triple bottoms, and even repeated rejections from the same level. The point is, when a level seems highly obvious for a bounce, many traders buy there and
take long positions. These people usually place their stop losses slightly lower . This causes liquidity to accumulate below that level, which becomes a target for large parties. They create wicks here, causing people to hit their stop losses. So, here we
are trying to find any liquidity level that is positioned above our demand zone. Typically , the price will go below that level, sweep away the liquidity below it, and then
bounce back to our demand zone. When this happens, this bounce becomes our long opportunity, meaning we can buy here. The same logic applies to bearish formations as well. Here, we 're looking
for a liquidity level that's below our supply zone. Generally, price will break above this level, sweep away all liquidity above it, and then find rejection from the supply zone. Such rejection becomes our short opportunity
, meaning we can sell here. Let's return to our original example. Since we've already identified our demand zone, our next step is to find the liquidity level sitting above it. Here, we
can see that price has formed a double bottom. Price has rejected the same level twice , creating a pool of liquidity below that level. Once Once the liquidity level is identified, we proceed to the final step:
entering the trade. Entering a trade with this strategy is quite simple. We place a limit order above the demand zone. We place a stop loss slightly below this zone and set our profit target twice the stop loss distance. This means
our risk-to-reward ratio is 1:2. Or, if you want to be more aggressive , you can set the previous high as your profit target. Now you've placed a limit order. This means you're not entering the trade at the current price.
Instead, you're setting your entry at your desired entry price and setting your stop loss and target in advance. This way, you don't have to sit in front of the chart all day waiting for an entry. All you have to do is set a limit
order and let the price move. You don't have to worry about unnecessary risk. In this example, the price actually went below the liquidity level. We made a weak entry and then reversed back up
to hit our take profit target. This strategy may seem a bit complicated at first because several conditions must be met for it to work . But it's actually not that difficult. This strategy simply
involves identifying a few key rules . You simply need to find a liquidity level that forms near a supply or demand zone. This is similar to identifying any regular chart pattern . For example, in a triangle pattern, you don't try to find
the exact price movement, because prices never move like this in real life . Instead, you focus on the rules that create the pattern, which in this case are converging trend lines. It's the same with our liquidity strategy
. You don't have to try to find the exact price movement on the chart ; you just need to get a rough idea. You just need to pay attention to the key rules that create the pattern. This means a liquidity
level formed near a supply or demand zone. You need to understand these rules, not memorize price sequences. Now let's take another good example. We need to follow the same four steps again. Our first step
is to find a break-off structure. Looking at this entire chart, we can see that the price is making lower highs and lower lows, indicating a clear downtrend. This is where we can see a break-off structure because the price broke this low and made a new lower low
broke its previous low here as well. Once you've identified the break-off structure, we can proceed to step two. The second step is
to identify the supply or demand zone. Since the price is in a downtrend, we 'll look for the supply zone instead of the demand zone. To do this, we'll look for the most recent break-off structure . Then, let's look at the starting point just before the sharp movedown that
led to the breakout structure. In this case, it's here. So, we mark our supply zone here. Next, we move on to step three, which is to find a liquidity level below that supply zone. Here, we can see that
the price has been rejecting this level for several weeks, making it an area of ​​liquidity. This makes it a target for a liquidity sweep. So, now we have a supply level, and there's also a liquidity level just below it,
making it a valid liquidity pattern. Now, we can move on to step four, which is to take the trade. Since this is a downtrend, we'll take a short trade. Meaning, we'll sell, and if the price goes down, we'll profit. To enter, we'll
set a limit order below the supply zone. We'll set a stop loss slightly above it, and place our take profit target at the previous loss. Now, we let the trade run. In this example, the price sweeps the liquidity level. It hits our
entry at the supply zone and then achieves our take profit. So friends, by now you should be understanding everything. This is a strategy that can help you cover your expenses every day. The preferred time frame for small traders
is 5 to 15 minutes. You can use this strategy without hesitation even in this time frame . The best part is that this strategy works in every market, be it forex, crypto, or the stock market. Friends, now
Let's get a little advanced. What I've taught you so far is just a basic version of this strategy. There's also a more advanced setup that will allow you to generate slightly more profits. So, if you've mastered the basic version,
let's move on to our advanced setup. The advanced setup isn't too difficult. First, just like in the basic version, we'll follow Step 1, which is to identify a break-off structure. This allows
us to identify a supply or demand zone by observing the initial sharp move . After that, we 'll mark the supply or demand zone in the same way. The main difference in this advanced setup lies in the liquidity level. Instead of typical rejection patterns like a double bottom or triple bottom,
liquidity is created by a second demand zone formed by another break-off structure. However, this second zone should be a minor demand zone, slightly different from the major zone found below it. So, how do we
determine whether a supply or demand zone is major or minor? It's quite simple. We 'll look at the break-off structure that follows. If the break comes from a large and pronounced price swing, it's a major zone. If it
comes from a small, short-term move, it's a minor zone. The ideal setup for this strategy is when we have a minor demand zone sitting directly above a major demand zone. This minor demand zone becomes our liquidity level, and we
try to enter a long trade when the price sweeps the liquidity of that minor zone and bounces off the major zone directly below it. So, let's take an example . In this chart, we can see that the price
is making higher highs and higher lows, which is clearly an uptrend. This is where we see a break-off structure . This means we can draw our demand zone on the initial move that preceded the break, which is located here. Now, if we look closely, we can also see another break-
off structure just above. This means we can draw another demand zone before the initial move leading to that break . Since that break was caused by a small price swing, we classify that zone as a minor demand zone.
The zone below was formed by a larger price swing, making it a major demand zone . So, we now have an ideal setup: a minor demand zone sitting directly above a major zone, giving us a valid liquidity setup. To enter, we
place a buy limit order above the major demand zone. We 'll set our stop loss slightly below it and our profit target slightly above the previous high. In this case, we can see that the price
rejected the minor demand zone a few times before breaking through. The price then retested the major demand zone, triggering our entry, and then the price bounced upward to hit our take profit . This was our clean and successful trade. Let's look
at another example . In this chart, we can see that the price is forming lower highs and lower lows, clearly indicating a downtrend structure. There are several break-off structures here, but we'll focus on the most recent one
. Based on this break-off structure, we draw a supply zone. Upon closer inspection, we can see another break-off structure here, resulting from a smaller price swing. From here, we draw our second supply zone.
Because this supply zone was formed by a smaller move, we classify it as a minor supply zone. The opposite zone above it was formed by a larger price swing, so we'll consider it a major supply zone. At this point, we have
a minor supply zone directly below a major supply zone, giving us a valid liquidity setup. For our entry, we place a limit order below the major supply zone. We our profit target below this low. As the price moves forward
, we can see that it shows rejection towards this minor supply zone. This confirms that this is a strong liquidity level. The price breaks it and sweeps away the liquidity. Now our entry at our major zone
is hit, and the price falls, achieving our profit target. So friends, this was a simple tutorial on our liquidity strategy in very simple language . If you liked this video, please like it.
Like and subscribe to the channel. See you in the next video.