[00:00] setup. Where price made a high, retracted back&nbsp; down, and came back to test this high again. &nbsp; You watch closely as the candle slowly&nbsp; starts to come to this resistance point. &nbsp;
[00:13] Tons of volume starts coming in and more&nbsp; and more buyers are starting to enter. &nbsp; The candle is getting bigger and bigger. You wait eagerly to enter as once price&nbsp;&nbsp; breaks this high. You expect the price&nbsp; to sky rocket and make a ton of money. &nbsp;
[00:27] And then suddenly it happens. You quickly go to broker and&nbsp;&nbsp; the gains come into your account. But wait, whats happening? &nbsp;
[00:39] The price is starting to slow down. Oh no, its starting to&nbsp;&nbsp; reverse. What? It s crashing? And it turns out, you entered into&nbsp;&nbsp; a false breakout and lost all your money. Well what if I told you, this is one the&nbsp;&nbsp;
[00:53] most common ways traders lose money. If only there was a way to avoid these&nbsp;&nbsp; false break outs completely and make&nbsp; sure this never happens to you again. &nbsp; I found a brand new technique to make sure&nbsp; this never happens to you ever again. &nbsp;
[01:09] And you can actually capitalize on moves&nbsp; just like this one and know they are&nbsp;&nbsp; Well to understand why this move happened&nbsp; we first have to understand what caused it. &nbsp;
[01:21] And the answer is liquidity. Ya see, the markets are ran based off liquidity. &nbsp; In other words, liquidity is basically&nbsp; fuel for the market to move. &nbsp; Without liquidity, the market wouldn t move. Let me paint you a picture. &nbsp;
[01:34] If you were in a long trade in this specific&nbsp; example, where would you set your stop loss? &nbsp; Well most traders are going to set their&nbsp; stop loss right below this low probably. &nbsp; As if price goes below this low you&nbsp; d expect the price action to turn&nbsp;&nbsp;
[01:47] bearish and continue to head downwards. And you aren t doing this, a majority of&nbsp;&nbsp; the market as this exact same style of thinking. So what ends up happening, is a lot of stop loss&nbsp;&nbsp; orders are going to be set in this area. So price is naturally going&nbsp;&nbsp;
[02:01] to want to head towards it. And once prices breaks this low,&nbsp;&nbsp; its going to trigger all these stop losses. But the big hedge funds and private equity&nbsp;&nbsp; firms know this, and they use all of these stop&nbsp; losses as liquidity to enter big positions. &nbsp;
[02:17] So often times, price will do this break,&nbsp; the big companies will enter their positions,&nbsp;&nbsp; or in other words. Creating liquidity. The market is ran by liquidity. Once you realize&nbsp;&nbsp;
[02:30] actually what drive price in a certain direction. So how can we make a strategy based off of&nbsp;&nbsp; this information to make sure we can&nbsp; capitalize on moves just like this one? &nbsp; Well, that s why you clicked this video right? Its actually pretty simple. &nbsp;
[02:44] So this is a pretty common chart setup. You will have equal highs right here. &nbsp; call these points support or resistance. But actually these points of liquidity. &nbsp;
[02:56] But before we get into the actual strategy. We&nbsp;&nbsp; first have to understand another core&nbsp; concept, which is fair value gaps. &nbsp; A fair value gap is simply when price&nbsp; moves up or down an insane amount,&nbsp;&nbsp;
[03:11] creating an imbalance in the market. You can mark this area by simply marking&nbsp;&nbsp; the wick before the big candle, to&nbsp; the wick after the big candle. &nbsp; This candle moved up so quickly that it didn t&nbsp; give sellers the chance to correct this move. &nbsp;
[03:27] Creating an imbalance in the market. So naturally price will want to come back&nbsp;&nbsp; its important for the strategy. So going back to the example before. &nbsp;
[03:39] Often times, if you go on a higher&nbsp; timeframe like the 1 hour or daily. &nbsp; There will usually be a bullish fair value gap&nbsp; right below this liquidity. Somewhere right here. &nbsp; And there will also be a bearish fair value&nbsp; gap above these highs somewhere right here. &nbsp;
[03:55] So going back to the point I made earlier. Price&nbsp; will naturally want to come down to this point to&nbsp;&nbsp; information we can work around. Price will naturally want to take&nbsp;&nbsp; Once it hits this fair value gap it&nbsp; will want to repeat the process. &nbsp;
[04:09] Well you may ask. Wheres the new liquidity? The liquidity is right here at these equal highs? &nbsp; So price will naturally want&nbsp; to take out this liquidity. &nbsp; And while doing that, price will usually move&nbsp; up so fast that it will leave another fair&nbsp;&nbsp;
[04:24] back down to this new fair value gap. Once price gets here it will naturally&nbsp;&nbsp; want to take out more liquidity. And where else to do that other than&nbsp;&nbsp; the highs, it made in the beginning? Price will naturally want to take out&nbsp;&nbsp;
[04:40] these highs. Creating liquidity. And&nbsp; then hit this bearish fair value gap. &nbsp; It will eventually hit this bearish fair value and&nbsp; then repeat this whole process to the downside. &nbsp;
[05:04] Once you start thinking of the market in the terms&nbsp; of liquidity and imbalances it will completely&nbsp;&nbsp;
[05:25] t even need to look exactly like this For example. Here we have this chart. We have&nbsp;&nbsp; Then on a higher timeframe we&nbsp; have a fair value gap right here. &nbsp;
[05:39] Price takes out this liquidity. Which&nbsp; gives it fuel to head downwards. &nbsp; While it comes down it leaves a small fvg. Price comes back up to it. Continues to fall. &nbsp; Now price breaks this liquidity. And we know it has an end goal of trying&nbsp;&nbsp;
[05:52] to get to this fvg on a higher timeframe. While doing this, it left a huge fair&nbsp;&nbsp; fvg to test it. Then reverses back down. So now we have 2 points of liquidity left&nbsp;&nbsp;
[06:05] and the market will continue to do this forever. One thing you should take from this video is price&nbsp;&nbsp; will always look for two things. Liquidity and imbalances. &nbsp; If you want price to go higher, you&nbsp; actually need price to go lower first. &nbsp;
[06:21] If you want price to go lower, you&nbsp; want price to go higher first. &nbsp; and share the monthly results every month so&nbsp; you can see how good the analysts are doing. &nbsp; And not to mention, people are&nbsp; absolutely loving the signals. &nbsp;
[06:34] Join the discord. I ll leave a link&nbsp; in the description.