---
title: 'I Found the Secret to Technical Analysis'
source: 'https://youtube.com/watch?v=p-HKL7NmDxs'
video_id: 'p-HKL7NmDxs'
date: 2026-08-19
duration_sec: 633
channel: 'TradingLab'
---

# I Found the Secret to Technical Analysis

> Source: [I Found the Secret to Technical Analysis](https://youtube.com/watch?v=p-HKL7NmDxs)

## Summary

This video presents a trading strategy that combines market structure analysis with liquidity concepts to identify high-probability entry points. The creator explains how to spot trends, identify liquidity pools, and use supply and demand zones to execute trades with favorable risk-to-reward ratios.

### Key Points

- **Strategy Overview** [00:02] — The strategy provides 'insane' risk-to-reward ratios, risking less to receive more, and is replicable by viewers.
- **Market Structure Theory** [00:29] — All charts follow the same market structure: uptrends (higher highs, higher lows), downtrends (lower highs, lower lows), and consolidation (sideways movement).
- **Identifying Trends** [01:34] — Uptrends are marked by breaks of structure to the upside; downtrends by breaks to the downside. A break of the last higher low signals a potential trend reversal.
- **Liquidity Definition** [02:40] — Liquidity is simply orders, which fuel market movement. Without orders, the market wouldn't move.
- **Stop Loss Placement** [03:36] — Traders typically place stop losses below lows (for longs) and above highs (for shorts), creating resting liquidity in these areas.
- **Price Targets Liquidity** [04:29] — Price is most likely to react at areas with large liquidity pools (highs and lows), often creating false breakouts before reversing.
- **Consolidation and Liquidity** [05:08] — Consolidation creates equal highs and lows, forming large liquidity pools above and below. Price will break out into one of these areas.
- **Combining Concepts** [06:25] — The strategy: identify trend, find liquidity in the opposite direction (for longs, liquidity to the downside), wait for a liquidity grab, then enter at a supply/demand zone.
- **Real Chart Example 1** [07:31] — Uptrend, equal lows (liquidity below), price breaks lows, enters at demand zone, stop loss below zone, take profit at high of original move.
- **Real Chart Example 2** [09:13] — Downtrend, equal highs (liquidity above), price breaks highs, enters at supply zone, stop loss above zone, take profit at low of original move.
- **Real Chart Example 3** [09:49] — Uptrend, consolidation with equal lows, price breaks lows, enters at demand zone, stop loss below, take profit at highs.

### Conclusion

The strategy combines trend identification, liquidity targeting, and supply/demand zones to create a systematic approach to trading. By waiting for liquidity grabs and entering at key zones, traders can achieve favorable risk-to-reward ratios.

## Transcript

got me this win this win this win and all of these win not only that but this strategy is set up in such a way that every single time you use it it gives you risk rewards that are absolutely insane meaning you're risking way less
to receive way more and by the end of this video you'll be able to replicate this strategy and use it yourself to understand the strategy we have to understand two concepts and one of those Concepts is Market structure now every
single chart you will look at will all follow the same Market Structure Theory I don't care if you're trading stocks crypto gold it's all the same every is moving upwards every chart will have downtrends where the chart is moving
downwards and every chart will have consolidation between the two where price is moving sideways it's pretty simple actually we only want to enter long trades and uptrends and we only want to enter short trades and
consolidating markets like the bubonic play looking at this picture it's pretty obvious that this is an uptrend and this is a downtrend so you might be sitting here thinking you're wasting your time
by watching this part of the video which it is pretty easy to spot uptrends and downtrends when you're looking at the past but when you start trading in real time it can be a lot more confusing and not a straightforward to identify these
Trends and you're way more likely to make a tricks you can use to help you identify these Trends not only faster but a lot
easier too to dumb it down a bit an uptrend will look like this where it's making higher highs and higher lows where price is continually breaking the previous highs when price breaks these highs this point is called a break of
structure of the previous High a downtrend is the complete opposite where it's making lower highs and lower lows creating breaks up structure to the downside now as you already know all good things must come to an end we know
when a bullish trend is coming to an end by watching the higher lows so for example our latest higher low is marked by this line and when price makes a break of structure of this higher low we can then expect it to make lower highs
after this which is the start of a new downtrend leaving you with something that looks like this then the whole process repeats itself forever and if you look at any of your charts right now you'll see the same
formation all over your charts so I did say there were two main Concepts to this strategy one of them is Market structure which is what we just went over and the other one is liquidity and this part is arguably the
most important step but first let me show you a site called hanker trade ever heard of it there are Forex and crypt broker that have extremely low spreads the market which who doesn't like saving
extremely friendly support team who will answer any type of question you have and the best part they are running a special promo where if you sign up with the link in my description they will match whatever you first deposit so if you put
in $100 they will match that and give you $100 that sounds like a deal sign up with my link and make sure you use that special promo so going back to the video liquidity in its simplest form is just orders and orders are what move the
market up or down without orders the market wouldn't really move so liquidity literally is what gives the market fuel to move so if you have a setup like this it's pretty common knowledge that you'll have sellers at the highs and buyers at
sellers enter into the market they will also be finding a place to set their also be finding a place to set their stop losses oh that's hot that's hot so think of it like this if you're a buyer and you bought down here at this level
it is very very likely that you'll place your stop loss below this low as if price goes below this low it would now be considered a downtrend and you don't want to be in a long trade in anymore and a lot of other Traders will be
having the same exact mindset and doing the same exact thing so there will be a lot of stop losses in this area meaning there will be lots of resting liquidity in this area right below this low same goes for sellers up here if you're
shorting from up here you'll most likely be placing your stop loss Above This High creating resting liquidity Above This high so now we have two areas of liquidity so if you're looking at this chart where is Price most likely to
react well if you said in the middle area you're probably wrong because price is most likely to react where there are large numbers of liquidity and where are their large numbers of liquidity at the highs and lows meaning price will always
try to Target and take out liquidity if you start to view trading like this it'll make your life so much easier so what's most likely to happen price will go up or down to the resting liquidity to try to Target it once it hits this
liquidity it'll most likely try to Target the liquidity in the other direction ction so in other words you can think of liquidity as almost a false breakout then once that happens the process keeps repeating itself on and on
the video I was going over how to identify Market structure we went over uptrends and downtrends but we never really went over consolidation which is when the market moves sideways and what I just taught you about liquidity ties
perfectly into consolidating markets because if you have a chart like this where we previously were in an uptrend and then price starts to move sideways creating equal highs and equal lows this will naturally create huge pools of
liquidity so if you're trading like the majority of people do you're going to be placing your stop losses down here below these lows if you're in a long trade if be placing your stop losses up here above these highs which means there's
resting liquidity above and below this consolidation and price will only have enough fuel to break this consolidation if it breaks into one of these areas of liquidity so as a potential trade we want price to hit one of these areas of
liquidity then start to look for potential trade set up in the opposite direction as we know price will always Target liquidity so for example if price hits this upper area of liquidity we would then look for potential trade set
up to the downside since there will be lots of stop losses fueling this move to head lower same goes for the opposite direction if price heads downwards first into this lower area of liquidity we would then look for potential trade
setup to the upside so now that we know what both Market structure and liquidity are let's combine the two and make a strategy out of it so first things first we get a chart that looks like this making higher lows and higher highs and
it's made breaks of structure to the upside so since this has happened we can easily see we're in an uptrend and we only want to take long trade next we need some form of liquidity so we can make sure there's enough fuel for our
trade after this uptrend price does this where it created these equal lows and like I said before Whenever there are equal highs or equal lows that will mean there's lots of resting liquidity in those areas another Point since we're in
an uptrend we want our liquidity to be towards the downside because like I said before you want to think of liquidity grabs as almost like a fake out so if we're in an uptrend we only want to look for long trades meaning we need to see a
fake out to the downside first so we get lots of liquidity and only after that we look for a potential trade setup to the upside okay enough of that silly line stuff let's go to what you've all been waiting for let's go to a real life
chart example to start us off the chart did this where it's making higher highs and higher lows making breaks of structure to the upside so we now know we're in an uptrend and we only want to look for long trades but this isn't
really enough for us to enter yet so we need a bit more confirmation next price goes down a bit and does this where it starts to trade in a Zone and movees sideways now like I said before we never want to trade inside consolidating
markets but if we look a bit closer down here here price made equal lows and like I said with equal lows that creates tons of liquidity so there will naturally be huge amounts of liquidity below these lows also note how this liquidity is
towards the downside which is exactly what we want when looking for a long trade so next we want price to break these lows to get liquidity which is exactly what happens so we got our uptrend we got our liquidity next we
need to find a place to enter to do that I see a beautiful demand zone right here if you're not familiar with supply and demand I made a full video going over right hand corner of your screen to watch that video for a simple
explanation of Supply demand though it's just an area where price consolidates and has a huge strong push in One Direction Where We place the zone is just the start of that move price does exactly that on this chart so we'll mark
this area as our demand Zone price comes perfectly down to our demand Zone we enter the trade we're going to set her stop loss below the demand Zone and set her take profit at the high of the original move and just look at that risk
to reward ratio let the trade play out and we get a super profitable trade similar situation here here we have a downtrend because price is making lower lows so now we know we're only looking for short trades which means we need
liquidity heading towards the upside here we got equal highs which is absolutely perfect because now we have tons of liquidity above this line wait for price to break these equal highs now we need a place to enter there's a
beautiful Supply zone right here price comes up to our area of supply enter here set your stop- loss above the area of Supply set your take profit at the low of the original move and just like that we got a beautiful winning short
trade here's one last example first we need to see what trend we're in we're making higher highs and higher lows so that means we're in a long Trend and we only want to look for long trades next price does this and consolidates moving
sideways while doing this consolidation price makes these equal lows which is absolutely perfect considering we're looking for long trades we want our liquidity to be towards the down side we want price to break this liquidity which
is exactly what happens then we need a place to enter there's a nice area of Demand right here this is where we enter set her stop loss below the area of demand set her take profit at the highs we get a beautiful winning trade try
this strategy out yourself and let me know how it works for you by the way I'm sharing some private strategies on my Instagram where I'll not be sharing on YouTube so if you want to check those out make sure you follow my Instagram
thanks for watching and I'll see you guys next time