---
title: 'How to Understand Liquidity and Profit from It'
source: 'https://youtube.com/watch?v=khcpuPOosxE'
video_id: 'khcpuPOosxE'
date: 2026-07-12
duration_sec: 983
---

# How to Understand Liquidity and Profit from It

> Source: [How to Understand Liquidity and Profit from It](https://youtube.com/watch?v=khcpuPOosxE)

## Summary

Benjamin, a trader with 7 years of experience and over 3 years living off trading profits, explains his liquidity-based trading strategy. He argues that the only reliable market points are past highs and lows, where stop-loss and take-profit orders accumulate, and that price tends to react when these levels are breached. He demonstrates with real examples on the Euro/Dollar pair, emphasizing that most other indicators are worthless.

### Key Points

- **Introduction to Liquidity Trading** [00:02] — Benjamin introduces himself as a trader with 7 years of experience, living off trading profits for over 3 years, with over a million dollars in funding accounts.
- **Definition of Liquidity** [01:01] — Liquidity refers to money accumulated at certain market points where large positions have stop-loss or take-profit orders.
- **Where Liquidity is Found** [02:38] — Liquidity is found at every high and low of the past. These are the only points where price tends to react.
- **Criticism of Common Strategies** [03:04] — Most traders lose money because they use worthless strategies like support/resistance, moving averages, Fibonacci, RSI, etc.
- **Why Highs and Lows are Important** [05:52] — Traders place stop-losses at highs and lows to protect themselves. Price moves to collect these liquidity points.
- **Price Reaction at Highs and Lows** [07:14] — In 70-90% of cases, when price surpasses a high or low, it reacts. Benjamin recommends backtesting on TradingView.
- **Real Examples on Euro/Dollar** [10:30] — Benjamin shows multiple examples on the 4-hour and 1-hour timeframes where price liquidates highs/lows and reacts, providing profitable trading opportunities.
- **Conclusion: Only Liquidity Points Matter** [14:24] — He asserts that only minimum and maximum liquidity points are needed; all other indicators are unnecessary.

### Conclusion

Benjamin's strategy focuses solely on past highs and lows as liquidity points, claiming that price reacts in most cases when these levels are breached. He encourages backtesting to verify the approach.

## Transcript

step how to understand liquidity, where to place it, and how to be profitable thanks to liquidity. If you don't know me, I'll introduce myself quickly. I'm Benjamin, and I've been dedicating my time to trading for almost 7 years and living exclusively off trading profits for over 3 years.
and living exclusively off trading profits for over 3 years. over a million dollars in funding accounts. I'll leave some of my funding accounts. I'll leave some of my withdrawals here: $13,000 and $19,000. My best
month was this year in January, earning over $7,000 in a single month with funding companies, and all of this has been thanks to my trading strategy based solely on liquidity and understanding the
interbank algorithm that moves the markets. First, I want to explain what liquidity is and why it 's so important to know how it works and where it's located in the markets to be profitable. When we talk about liquidity,
we're referring to the money that's currently in certain points of the market, in certain important areas where large positions have accumulated, whether they're
stop-loss or take-profit orders—that is, exit points for profit or exit points for losses.
points? Basically, because that's where all the money in the market flows, and that's where the price is most likely to move or react. In other words, when the price reaches, surpasses, or liquidates these
liquidity points, the price tends to react. That's why it 's so important to know where they are, to take them into account for protection, to enter a trade, or to exit a trade. Because liquidity points are
important to know where they are, both for entering and not entering, and for exiting the market. I consider liquidity, these points, to know where to enter, where there will likely be a reaction, and
if you know where to enter but don't know how to properly locate the exit, or where the price is most likely to react and might reach your breakeven or your stop loss, then you'll also be lost. Obviously, you have to know where to enter, where
not to enter, and if you've entered, where to exit, because the price will most likely react. Now, knowing what liquidity is, understanding and having a clear concept of liquidity, and knowing...  What do we mean when
we talk about liquidity? Of course, the most important thing to know is: Where is liquidity found? Well, liquidity is found at every high and every low of the past. I'm sure you 've heard more than once
that sol blocks are very important because they are supply and demand zones, that the 50% Fibonacci retracement is super important and super relevant, that the RSI is super important, that the Mazda is super important, that the
380,000 moving average is super important. The reality is that you keep losing money, you keep losing money, you still don't reach funding accounts, and you still aren't profitable. This is the reality. The reality is that there are too many strategies
patterns that are absolutely worthless, and that's why the vast majority of people, the vast majority of traders—70-80% of people who lose money because they do the same thing everyone else
does: support and resistance, moving averages that cross—the fast, the slow, the mean—senseless strategies that you don't even know how to place.  You don't know if they're profitable, and what you're seeing is that they're not giving you results. In
this video, I'm going to try to explain with different real-time examples—that is, with real Japanese candlesticks—with real examples that I've taken, with trades that I've taken, so you can see how the price behaves when you
take those liquidity points. Why actually locate them, which timeframes are best, and how you can profit from them in the future if you dedicate enough time to it. By the way, before we
continue, below in the description you have my social media links. You have my free Telegram channel where I share information every week, and you also have my Instagram where I upload all the trades I take daily and
share information for free about my strategy. So, if you want to know more and are interested in discovering how I trade and how I made those 67,000 in January, below you have my Instagram. Now let's get to
the interesting part. I'm going to show you, I'm going to explain the different scenarios I look for, both to buy and to sell, and I'm also showing you where that... Liquidity at every high and low
of the past in the sales scenario. I'm sure that right now your head is probably exploding. Why? Because I'm sure that most gurus and most fools who teach this liquidity and explain
market structure and this kind of thing tell you that when the price block or the 60-70% Fibonacci retracement and go reality is that the price liquidates this zone, takes the liquidity, collects all the
money that is here, both stop loss and take profit, and distributes to the opposite side. Where does the price usually go? To the next liquidity point. What is that? It would be this low here. That is to say, I would be
trading basically the opposite of every typical trader or every person who tries to apply this structure that is so important and all these things that these people tell you who really have no idea how
and lows so important? Well, as I have told you, the only  The way to protect yourself and profit in the market is to think about it. You place your stop loss at a high or a low; there's no other way
to protect yourself in the markets. The price keeps creating highs and lows, highs, lows, highs, lows. As you protect yourself, you move forward, increasing your profit. You keep moving that stop loss, modifying where you're protecting yourself. Think about it
protect yourself at every low, at every high, whether you're selling or buying. Therefore, you just have to be a little objective and Hey, where is everyone protecting themselves? Where is everyone profiting? At the
highs? At the lows? This is the only reality of the market. Most of the structures people tell you about don't work, and the facts speak for themselves: trading. Why? Because they keep applying the same terminology, the
same terms, and the same strategies used by people who aren't profitable. If really making money from trading, they're explaining something. Why do you keep Losing money in the markets, why keep applying the same terms and
strategies? I invite you, after watching this video, to go to TradingView and analyze what I 'm telling you. Simply mark each high and each low on the one-hour or four-hour timeframe and analyze what
the price does. It tends to react when the price liquidates, surpasses a high or low. What does the price do when it reaches a high, surpasses a low, or surpasses a high? In 70%, 80%, and 90% of cases, it usually reacts. Obviously,
there will be times when the price continues to rise or continues to fall, but in most cases, when the price surpasses a high or low, the price we're going to come in. We're going to look for sells. Every guru would tell you not to
bullish structure. You have to look for the supply and demand zone, the order block, the breakout, the one where the price has reached this point, this liquidity, and it's going to react. Furthermore, as I've said, don't take my word for it?
Go to TradingView, observe, execute, analyze. Backtest and you'll see that what I and this is the basis of my trading strategy: only marking highs and lows of the past, and that's where I look for the counterparty. Most
people think, when the price breaks a high, "Buy!" "No, no, Everyone's buying!" "I'm selling!" And this is the reality: "You sell at this point." And where do I buy, Benjamin? Here you wait for the price to break, surpass, or
liquidate a low, and here, where we look for those buys, everyone would example I've given you? I'm sure that on many occasions you've tried to take a pullback, that is, the price retraces, and you try to find
extract by seeing here: the price breaks a low, retraces, and you believe, with your supply and demand zone, your 2.0 Fibonacci, your R6, your MACD, that the price will bearish structure. The reality is that it won't. The reality is that...  You try to find
sales and the price keeps rising. Why does it keep rising? Because you've already enough liquidity. The price doesn't necessarily have to go down again. Why would it go down if it's already liquidated a low? It's already achieved that liquidity. The price
liquidates, takes those stop losses and take profits, those dollars, those euros, and goes up. next liquidity zone? Where is the next high? The next high is where we should exit and probably look for other
sales until the price liquidates another point, another internal low, another internal high. This is a bit more complex; these are also liquidity points. But the reality is that every time the price breaks a previous low or high...
hour. Those timeframes tend to be the best. You set them up and do backtesting. Don't take my word for it. Now, when you're done, go to TradingView, go to your backtesting platform, and try it. Set a maximum, set a minimum, one hour, four hours, and
price do? And when you're done, come back here in the comments and ask me or you're right. Hey, I'm not sure that 80% or 90% of you will agree with me, and be careful before you go and check it. But I'm sure you'll agree with me.
All the highs and lows of the past one or four hours... I price is going to hit a one- hour low and move 1000 pips, but you're going to see a reaction. You're going to react, you're going to move. You'll see how the price,
highs, is going to react, and that's where we look for those entries. One, two, enough. Most of my trades are one to two, and that's what you really have to do: locate the liquidity,
past highs and lows. Let's see a couple of real examples. Here we have several examples in the Euro/Dollar pair, which is the only one I personally trade, and this is also important. I only recommend trading one pair, as it's more
than enough to make money trading one pair, and in this case, I use the one with the liquidity and the least manipulation within all the this case, I'll go with the euro/dollar. We are in the 4-
hour timeframe, and I've explained here that I've pointed out certain points where we're going to see what the price does and how it behaves when it takes a low or a high. We're in the 4-hour timeframe, let's go down to one hour as
that price behaves so you understand. First example: Price. Takes this high. Reaction. Manipulation. Liquidity. Here are all the stop-losses. Liquidates. Drop. But hey, an example that I haven't marked, but I'm going to
show it to you. Liquidates. Low. Boom! Blows upwards. Okay, another example. For the price of one. I'll give you two. For the price of one, I'm going to give you three. Another example here. Stops the drop where it stops. Next point is this low that
we have here. Next zone. I haven't marked this one either. But well, it doesn't matter if this repeats continuously. I invite you to look for it. High. Mitigates the drop. We already have another drop. Low. Pulls back a little. This is out of time.
much volatility, but there you have the pullback. Those pullbacks, maybe 30 or 40 pips, are enough to make us money because if our stop is three or enough to get a 1:2 or 1:3 ratio. But anyway, it doesn't matter. Let's
take another example: a high, or boom, a burst downwards. Let's look at the other example: this low closes upwards, this high closes, boom, a small but also significant drop. Notice that it's quite a large reaction. Okay, although we see that it's
a small movement, there are quite a few pips here where you can make money. Okay, we 're talking about 93 pips. If you don't make money here, it's because your stop is too big. Look for smaller styles, a good strategy,
smaller ratios that allow you to find those entries with a three-pip stop. So, in a 90- pip movement, it's more than enough to make money. Another entry, let's look at it: a 4-hour high closes to the pip. So you can tell me that's
liquidity.  Liquidate at the pip, boom, downward burst, another one I didn't have set, no problem, liquidate, reaction, liquidate, reaction, liquidate, reaction. Where to? I'm not making this up, I know I can
really want you to open your eyes, and I think there's no other way for people to open their eyes except by talking to them like this: liquidate, liquidate, where it reacts, maximum and minimum point. You don't need more, let's go for another example,
absolutely nothing happens, there will be examples, maximum of 4 hours, liquidate, boom, reaction, reaction, liquidate, reaction, okay, liquidate this maximum, liquidate this maximum here, reaction, liquidate this minimum, action, look at this. This is a news item
n't move with an interbank algorithm and that liquidity doesn't exist. Liquidate at the pip, okay, imagine the amount of stop loss that was up here. For the price to liquidate, boom, fall. This is the reality
of the market: liquidate, boom, downward, you liquidated, minimum purchases, you liquidated, minimum, boom, small purchases upwards, look, liquidate, boom, very simple, liquidate in one hour, rise. Why?  Here's something very important and very simple: I
'm not discovering a panacea or the beginning of the universe here. I'm being objective about where people place their stop-loss, take-profit, minimum, and maximum points. protect themselves at a minimum, a maximum, a minimum, or a maximum of the
past. Therefore, all the liquidity, all the money, is there, at every minimum or maximum of the past. That's the reality. The rest is smoke, lies, empty words, the reality. The rest is smoke, lies, empty words,
liquidity points are more than enough to make money in the training order blocks. No half-order crossovers with slow, fast, normal, and super-slow options, no GCD with the 36 level,
and super-slow options, no GCD with the 36 level, nothing, no stochastic oscillator, no volume profile, nothing. Minimum and maximum liquidity points. This is what you need. Here I've shown you eight examples. Try it, see it,
backtest it, and then tell me if it's worthwhile. If it's not worthwhile, obviously there will be times when the price reaches the point and continues upwards or downwards, especially during periods of high demand. Volatility, for example, right now this month
of February, mid-February. So Trump has been continuously raising tariffs, lowering them, removing them, adding them, every day. Obviously, the market is more volatile, it moves more aggressively towards a zone without a clear direction, it's not
creating accumulations. Of course, in those moments in the market it's more difficult to find a reference high or low because the market isn't accumulating, case in March, it's been going phenomenally well for me. From the beginning of March until now, the
liquidity points, it's making those movements. There will be moments in the market where there is more volatility, where there is more momentum, where maybe the strategy isn't working so well, or because there aren't highs and lows, there are simply expansions to one
Hey, you don't find too many entries, but I invite you to backtest March, January, early February, December, November, October. You'll agree with me, price, every time it reaches a point, a high, a low—I advise you to do an
react. That's all, guys. I hope you liked it. I hope you'll leave me... comment that I really appreciate. Because these videos take work; you have to examples, you have to do it well. And hey, if you
your questions, your little things, whether you support or don't support, your opinions, whatever you want, I would greatly appreciate it. See you in the next video.