AI Summary
This video teaches retail traders how to identify liquidity zones in the market, a core concept of smart money trading. The narrator explains how large players create and hunt stop losses to fill their orders, with live chart examples from Bitcoin, Ethereum, and the Indian Sensex. He also shares practical rules to avoid liquidity traps and briefly promotes the platforms Delta Exchange and Lemon.
Chapters
Understanding liquidity prevents unnecessary trades and reduces stop-loss hunting, helping you trade alongside big players.
A big player needing to execute a large quantity cannot do it at once, so it forms a range to accumulate retail stop-loss orders.
Placing a stop loss is a limit order; when the price reaches it, the order is executed, making that loss a source of liquidity.
To sell a huge quantity, the big player first drives price up to trigger buy stop losses, then sells into that liquidity and pushes the market down.
Liquidity is located above swing highs (buy stop losses) and below swing lows (sell stop losses).
On the Bitcoin chart, a liquidity sweep happened: buyers entered, their SLs were taken, and then price moved.
An Ethereum long taken the previous day was at ₹1 lakh profit but returned to cost; liquidity is present below the swing low.
Minimizing stop loss gradually saves money so you can enter a second trade.
The running trade is on Delta Exchange, a fiat platform for crypto futures/options with up to 200x leverage.
First trade lost ₹47,000, second trade with 1:2 risk-reward gained ₹1,15,000; net profit ₹68,000.
Lemon integrates AI with prebuilt strategies, and claims 27-28% of its users make money in F&O vs a 90-95% loss ratio in the Indian market.
Always identify the trend on higher timeframes (1H, 4H, daily) before entering any lower timeframe trade.
The first breakout/breakdown from a range is where most liquidity hunting happens; wait for a pullback and confirmation.
In a sideways market, avoid large positions; only scalp small quantities at support and resistance zones.
The next video will cover Fair Value Gap, which helps enter the market at the right place.
Liquidity is a key mechanism of smart money trading: big players create ranges to collect retail stop losses and then sweep them to fill their orders. By following the higher-timeframe trend, avoiding first breakouts, and trading only with confirmation, retail traders can reduce their chance of being hunted.
Mentioned in this Video
Tutorial Checklist
Study Flashcards (10)
What is liquidity in trading?
easy
Click to reveal answer
What is liquidity in trading?
Stop loss orders placed by retail traders that big players use to fill their large positions.
03:56
How do big players execute large orders?
medium
Click to reveal answer
How do big players execute large orders?
They create ranges to collect stop losses, then move price to sweep them, filling their orders.
03:27
Where does liquidity typically reside?
easy
Click to reveal answer
Where does liquidity typically reside?
Above swing highs and below swing lows.
06:55
Why does the market create a range before a move?
medium
Click to reveal answer
Why does the market create a range before a move?
To collect liquidity (stop losses) from both buyers and sellers.
22:30
What happens after a liquidity sweep?
medium
Click to reveal answer
What happens after a liquidity sweep?
Usually a big fall/move in the direction of the big player's position.
24:34
What is the first rule to avoid liquidity hunting?
easy
Click to reveal answer
What is the first rule to avoid liquidity hunting?
Identify the trend on higher timeframes (1H, 4H, daily) before entering a lower timeframe trade.
26:09
Should you enter the first breakout from a range?
easy
Click to reveal answer
Should you enter the first breakout from a range?
No, most hunting happens there; wait for pullback and confirmation.
27:51
What is the recommended strategy in a sideways/range market?
medium
Click to reveal answer
What is the recommended strategy in a sideways/range market?
Avoid big positions; only scalp small quantities at support and resistance zones.
30:11
What was the net profit shown in the trade example?
hard
Click to reveal answer
What was the net profit shown in the trade example?
₹68,000 (after a ₹47,000 loss and a ₹1,15,000 profit).
19:40
What is the next topic mentioned for the next video?
easy
Click to reveal answer
What is the next topic mentioned for the next video?
FVG (Fair Value Gap).
34:20
💡 Key Takeaways
Big players create liquidity
Explains the core mechanism behind smart money trading: large orders are filled by harvesting retail stop losses.
02:28Liquidity location
Gives a simple, testable rule: liquidity sits above swing highs and below swing lows.
06:55Higher timeframe trend
The most practical rule for avoiding liquidity traps: align lower-timeframe trades with higher-timeframe trends.
26:09Range market strategy
Warns against taking large positions in sideways markets and suggests scalping only at boundaries.
30:11Market is not your enemy
Reframes trading as a battle among retailers, not against the market, emphasizing the need for education.
33:53Full Transcript
[00:06] in trading because I had explained this a lot in the last video, in the greed of grade, it means you were going to take that trade longer. Hey friend, what are you doing brother, leave everything, forget everything, forget what you had till now, forget what you have got, you can earn
[00:21] forget what you have got, you can earn ₹1400 for me in so many days, is going to be done here, you have to understand this thing [music], be reliable on that, you should not invest your hard earned money like this, then the we have learnt all this, then now we have become traders, you also thought this, you
[00:36] earn money from the market with your understanding, chart by chart, the chart is new every day, everyday [ music] the chart will be different, did you understand anything just now? Now the stop losses are being hit. Stop loss is hit and target is coming.
[00:49] Stop loss is hit and target is coming. This is the biggest problem of traders. Now here I am going to teach you a new concept today. That is liquidity. If you learn to identify liquidity in time, you will not take unnecessary trades. The
[01:02] you will not take unnecessary trades. The If liquidity is understood then there will be less SL hunting and the trade plan will be done at the right time and at the right place sit with the big players. And this is what we are going to talk about in today's video. Welcome back to
[01:17] teaching my younger brother trading. Now you people might be thinking that brother, it will not happen if I keep teaching it on the board only. I will teach this on practical chart. I will teach you by doing practical trading, brother, how exactly trading is done? How is the trade done
[01:30] ? And based on what it has learned, it will plan its trades, execute them and improve it. Teach him new things so that and become a better trader. And that's why we have
[01:44] liquidity. And liquidity is a very common topic which everyone should not know about liquidity in trading then trading is incomplete. This means that you have not learned trading properly. Ok? So the first question regarding liquidity is
[02:00] for you and all of you, what do you understand by the meaning of liquidity Hunting stop loss. Stop loss hunting is what everyone thinks of as No. Do n't you know? Let us first understand it on the chart
[02:16] and identify it on the chart. Where is liquidity available , how is it available and what kind of trades will be made. Before that, let us understand the topic of liquidity once. For that let us go to the board and understand
[02:28] what is liquidity? Right? Hold on to Life Span and keep telling me whatever I ask and you also understand it carefully. Ok? Our topic is liquidity. Now how does liquidity happen? For example, any XYZ player.
[02:43] We will call him a big player. Right? Who takes the market? Small Big players. Big players take it away. For example, this big player has to invest a huge quantity. For example, you can understand that so many
[02:58] lots have to be invested. Right? It could be this or even 10x this. It can be any amount. Now so many lots have to be placed. If he goes to buy or sell so many lots. Will If he goes to buy or sell so many lots. Will
[03:11] So what does he do? Look, this is where we understand the concept of liquidity. Now for example, the market moved from here and we started forming a range on the right side. Now someone has to sell such a huge quantity from here.
[03:27] So, if the market gets an upside momentum from here, will we not get it. So this big player wants to take the market down. What will he do now wants to take the market down. What will he do now ? This will create a market here.
[03:42] This will create liquidity here. Now once again the price came down. This is where you and I entered. Ok? This became our entry zone. Right? And here we What did we put on top of it?
[03:56] Applied SL. What order is placed when you place a stop loss ? limit order. If your limit order is punched in the market. So order is punched in the market. So what if your order is placed here? When the market
[04:09] price reaches there, it will be cut automatically. It will be cut. That means that order is liquidity. Because your order has been sent. If you are not placing SL, working by taking open positions. But if you have placed SL then you have
[04:24] created liquidity in the market. Now he understood the big player. Hey friend, liquidity is being provided. I will not be able to sort such a large quantity at once. Then it took it a little higher. Then he brought it further down. Then someone else
[04:38] sold it here and added assets. What was created? Liquidity. Liquidity. Ok? Then place more orders. Then created more such ranges. Then created more range. Then created more range. And such a range was created. Now you get stuck in this range.
[04:52] You can sell in this range. And in this range, where are the maximum SLs placed in this range ? Swing high. There is one here. There is a swing low that is buying from below. Are
[05:04] okay? One that is selling from the top. SL is here. Now what was this big player supposed to do ? Had to sell. Had to sell it. If it has to be
[05:16] cannot execute such a large quantity at one time. So it created a market. Created it. This created liquidity. Now first of all, if you want to sell it from here, then you will have to buy it. I will have to say goodbye. So from here the price will move a little higher.
[05:31] And here, automatically? When the price reaches that point, then he has sold. So, if the price has gone
[05:43] up, what will be the SL trigger? Of the buy or whose SL got triggered? Of the buy, what did he have to do? sellers had orders from their buyers.
[05:58] Where did the matching happen here? So, he created the entire market just to fill the quantity. It has to execute such a huge quantity. So this created a range where everyone placed SL sell and buying orders here. Everyone is
[06:13] Buying orders were placed here. Buying orders were placed. Now it has to be sold. He This pushed the price up. Everyone took their stop losses. Liquidity was missing. Sweeped and
[06:27] felled. Now you too will be one of these traders. You must have also placed SL on this swing. This big player planned it. I ate your SL. And took it to the same target. You were sitting short, right, this too from before. And then I will feel it after seeing you.
[06:41] Hey friend, I was sitting short. But first he ate my SL and then went and gave the target. This is called liquidity. This is called liquidity Where is it? One above and one below.
[06:55] One above and one below. Yes. Now if this big player here had to buy, if he sold it now, if we had to buy it, then all of you have buying orders, you would have been buying here and you would have been selling
[07:10] orders here because you have placed SL, he needs selling orders because he will place buying orders here, he will place buying orders here, you people have selling orders here
[07:23] below this and the price will come down a little, all this will eat up the liquidity here and then it will go up. come down a little, all this will eat up the liquidity here and then it will go up. You need to understand the liquidity on the charts. Only then will you be able to trade properly on the charts.
[07:39] Right? Now let's go to the chart a little bit. Now let us understand on the chart where we are getting liquidity in our chart. Here the charts of Bitcoin Ethereum Indian market indices are works everywhere. Be it the crypto market or the forex market. It works even better in the forest.
[07:53] liquidity is created everywhere. Because there are so many big players who can trade 10000 Because there are so many big players who can trade 10000 lots or 500 lots, any big quantity, These big players work in that amount.
[08:06] And when they work, they create liquidity first. And what creates it? Because of traders like you and me, who Because of traders like you and me, who
[08:19] they steal the liquidity. The money goes in the direction it has to go and then you think, [ __ ] man, did I place a buying trade here or did I place a selling trade. It first hit my stop loss and
[08:31] hits my own SL. The market does not hit your own SL. The market makes you a buck and you make it. Your liquidity is hunted. Your SLs are hunted. A
[08:43] target is given. Now let us understand on the chart. So now let us understand on the chart. open here. Here's to Bitcoin. Here it is for Ethereum. We have a trade going on here. We also took a trade today. Meaning I had taken it. And there
[08:57] So brother, let us find out in this chart where there is liquidity. Where did I see liquidity sweeps? Look, this has happened here guys, if you can see then a very good liquidity sweep has happened here. Now
[09:10] sweep happened here? Buyers were made to enter here, their SL was taken away and buyers were made to enter here, but how was liquidity created? Why did the price go up?
[09:22] big player. Why will orders from big players be placed? There are retailers here. Retailer's SLs are installed. Hey, so the retailer's SL orders are placed. The big players are going to take orders, right? This is what you have to understand. This price
[09:37] came here. Rejected from here. Who entered? Retailers did. Retailer. Retailers have it. Then if the price entry was made here. Whose orders were placed? Retailer.
[09:51] short cut here. Then the price went up, then came down, whose orders were placed? Retailer. So what was created here? Liquidity. Now what did Price do?
[10:05] He made an entry here, if he wants to create a position on his short side and if he wants to take the price down then What did he do to liquidity from here? Gabe did. Liquidity sweep. His liquidity was consumed. And this liquidity has already been created. Now
[10:18] if the liquidity is swept from here then the price comes down. And he came down here with these big red candles. Again the price went up. Again took orders here. An order block has been created. And again the price is looking to come down from here
[10:31] taken a trade here also. Brother, since two days, that is, since yesterday, we have been trading on this and this is the trade of Ethereum. Now I feel that if there has been a liquidity sweep here, if you are seeing here, if there has been a liquidity sweep at this place
[10:44] I should cut this trade. Isn't it ? And although I had taken it since yesterday, I was making a profit of ₹1 lakh in it. But now it has come to cost again. Now there is liquidity here too. Now tell me where is liquidity being created here
[10:58] ? Below we are here, here and here, so there is a liquidity here, the SL of the buyers, then the price came down, the
[11:13] below the swing low, SL, SL now if the market has to go up, if the big player wants to take the market up, then what will he have to do, he will have to hit the SL of the sellers, buyers, if the market has to go up, then
[11:28] why will he hit the SL of the sellers, what will the buyers do, if the market wants to go up, if the market wants to go up, then the SL of those who shorted will be hit, then the SL of those who shorted will be hit, then the
[11:58] below the swing low, so what does the big player need? He has to Exactly limit order, stop loss. Sell stand? We are lying down together right now. So if the market has to move up from here, then only the
[12:12] sell orders placed below this swing low will be put? Buying orders. understood? So in the same way we will have to understand the liquidity that all the sell orders are lying here right now. They all said goodbye and are sitting down.
[12:26] Which order does it take? Limit. Limit order. What does a limit order do? If the price reaches that limit order, it will exit automatically. So there is a sell order there, right? He said bye.
[12:38] Sellers have sold. All the buying orders are lying here. Isn't it? He shorted here. If he exits after shorting, he will face buy orders. Right? Now I came down there. He said goodbye here. All his
[12:51] sell orders are listed below. So if a big player wants to buy the market here , wants to take the price up from this point, then he will place a buying order. orders fall below this, the market will come and spike down once. It will snatch away the
[13:05] liquidity of all these people. The range will be created and then it will go up. And what will all these people think that friend, I was sitting in the right place. Why did the market eat my SL ? And my SL went up after eating. So right now we have two
[13:17] fallen but it is holding from the bottom. That is why I have placed SL below this swing low. If it breaks below this swing low, the price may fall or it may go up by hunting SL. So we did our work, what is our work?
[13:30] Gradually minimizing our stop loss to save our money. Only when there is money left will we be able to enter the trade for the second time. Now see another example here. Now see another example here.
[13:43] Byers. Of buyers who have bought. sale orders are listed here. Sell orders were placed. Now the big players have to take the market forward. He will place a buying order. What are buying orders matched to? to
[13:57] selling orders. And where are the orders lying to match the selling orders Below address swing low k. Retailers' sales orders are down. The big player engine brought the price down to match his order. Liquidity was missing.
[14:11] The price went up. And went up with what a big candle. What retailer can carry such a large candle bring it. If a big player had to deposit a large quantity, then his orders were fulfilled here. To fulfill the order, he ate the SLL which was below the swing log.
[14:25] Price took it upstairs. And since then the price has been on the rise. The price has been on the rise since then. And if a big player wants to bring it down, then right now he will take the liquidity from the top and it will come down. Do you understand ? So this is how liquidity hunting happens.
[14:39] Liquidity is created. Then he is hunted. Ok? And let's see where else this happened below the swing low ? The price came down. The price has gone up, right? So I made it here like this. Everyone has SLs below this swing low.
[14:54] Liquidity was quite good. Look what Price did? Liquidity sweep done. Then up up up went the give. Isn't it? Now we will get to see more. Look here, how good it is, once the price moves down, there is
[15:08] liquidity at two places, see this is visible here, here also there assets, the price of retailers went up, first their liquidity was taken, when
[15:20] such big candles will come, what will everyone do, they will what did the SL do above the swing high, the swing high, market fall, so they played the game right here. What did you do? He
[15:36] brought big candles and everyone placed SLs here. He said, brother, if such a big candle comes, it will definitely crash. The excitement that beginners get is all about placing SLs. The price went up. Liquidity was lost. Liquidity sweep done. And
[15:51] what did you do after that? Look, I fell. So this is how markets work. So this has to be understood. Guys let me show you the trade on the screen. However, this trade that is going on is This trade is running on Delta Exchange.
[16:04] in the description box. It is a fiat platform where you can trade futures and options in the crypto market. And here you get the level up to 200X only. Link is in description. You can open your account here free of cost.
[16:17] I am just planning it right now. If it comes down a little then I will buy it as I have kept it tight SL. It's only worth $000. The risk reward of my $700 1 7 on behalf of $000 is what This is my risk reward. And I will also share this trade.
[16:33] can join that. I have provided a Google form. If you have opened an account access to the community free of cost. Whatever trades I have, however many Now let's talk about the current trade. Now as it is day time, I
[16:46] traded in the Indian market and I will show you what I traded in the Indian market. concept was of liquidity. Let us understand how we identified liquidity here. Look, look carefully. Let me show you the first thing right here.
[16:59] Here I opened the Sensex chart and as soon as I opened the Sensex chart, the trade we did was in Sensex. I will take it in 5 minutes. Right? Now let us look carefully at how the liquidity was gambled away. First of all this
[17:14] range was broken, we are seeing that this range was broken, what happened here also, the price took liquid SL, their price went up a bit here, come down, so the price came down from here, broke it and came down, right now when there is
[17:29] a support zone here, first we mark a support zone, from here till here, from here till here, green green color, what is the name of this candle,
[17:41] this is hammer candle, what do people do when hammer candle appears Reversal occurs. Reversal occurs. Let's do buying. Now this is what What will you do here now? I will say bye. [MUSIC]
[17:53] Below the swing low. Below the swing low. We also said goodbye. A small SL of mine was gone. Right? Then the price came down. Liquidity. There was liquidity. Because below this there is
[18:05] liquidity. And what did it do ? Liquidity was lost. The big player who has lost the liquidity will have to buy here, so first of all, we showed two rejection candles, the liquidity came down, its orders got fulfilled, the
[18:19] price came down to get fulfilled, the liquidity was lost, the liquidity was swept and the price came up and liquidity was swept and the price came up and then went up and we captured this move, you will see this captured move, guys, we had made an entry here,
[18:31] this first candle came here, while falling, then after that it came down, its liquidity was swept here, after that we placed it somewhere here. I think our people had made an entry somewhere here. And this is its entry zone. And after that the price
[18:46] came down a bit. Our SL was lying below this swing low. SL's close had come. But we held on. And here we hit our target directly. And look, the price came Support pulled back. Breakdown given below. Tested again at the resistance zone.
[18:59] Breakdown given below. Tested again at the resistance zone. What is the friend doing right now? We are going to take their SL. Yes. Yes, it still follows a kind of price action market. The price came down. Came to support. Went up after support.
[19:12] Then he broke down and came down. Then went upstairs. Then it came down a little. Now Stop loss. Place a stop loss. The market is about to eat into their stop loss. And it may come down in one candle. Because the
[19:25] buyers also have stop losses below. So this is how big players hunt SL. And now Same again in the previous trade I took I had a loss of ₹47,000.
[19:40] Then in the next trade I had a 1:2 risk reward so it was above 1:2. So I made ₹1,15,000. So I am currently running here with a net total profit of Rs 68,000. Just a simple concept, the first trade was also taken in the same way on the basis of support price action.
[19:54] that there was a liquidity sweep here. So we again took a long trade and followed our 1:2 risk reward in the second trade and made a good profit in the trade. And this trade I am doing on lemon. It
[20:07] is a very good platform. You get features inside it. You must have heard many times how much loss do people incur in FAO? Yes. How much percent is it? There is a loss ratio of 90% 90 95% 93 95%
[20:20] in the Indian market but there is a twist for you in Lemon, almost 27 28% people are making money in FAO and this is the data of Lemon. Why? Because AI is integrated there. What does AI integration mean
[20:34] ? That there you get a prebuilt bolt mode which has prebuilt strategies in it and which strategy can work on which day, it also strategies which work differently on different days, so its AI is
[20:49] so advanced that it will suggest you a strategy that these strategies can performed very well in the last 5 days. So you can work on that strategy that works on that specific day So you can work on that strategy that works on that specific day
[21:04] making ability becomes very strong there. So if you want to trade at 11, it is the best because if you are not integrating AI in trading then is so advanced that it solves almost 70-80% of your work.
[21:19] in the description box. Your account will be opened free of cost. And the best part is what will you get if you open an account with your referral link ? means if you are learning then trading will be free of cost. Then after one month,
[21:34] order at ₹10, wherever you know and what is the prevailing rate of brokerage, order at ₹10, all that is fine. This is also less. But I really liked the AI feature here. Everyone's strategies are available. And
[21:47] which strategies perform better on which day? AI analyzes based on past records. The donation suggests you. And on that basis you link is in the description. You can open your account. Right? So, this was to
[22:02] identify liquidity within the market. Like here we identified the liquidity, created the trade and identified some liquidity zones. Right? Which liquidity zones are emerging for us?
[22:17] support, such a big rally, from here where is the liquidity of all the buyers, what did the market do below this, yes stop loss and swept away the liquidity of these buyers, then the price, now
[22:30] see what a great example of liquidity sweep, see this, when the market makes a range, it made a range, it means it is collecting liquidity, it is creating liquidity, now the price had to go up but how did it make a range. [MUSIC]
[22:44] Made the range. All the bearers are sitting here. Isn't it ? And ate the SL of all these and then went upstairs. Isn't it? Now look here, it came down from here. And in this way, and in a
[22:56] very good way in crypto or Forex, liquidity is first sweep is done. Look what he made? You have created a range, right? A single range becomes very long. And most liquidity hunts happen in places
[23:11] where your na forms a very long range. Where a very long range is created, you have SS on both sides. Meaning that there must be SLs lying above as well as below. But look at the big player, I just gave you a live example.
[23:25] what did I just tell you, I will call and take liquidity. Will take liquidity. What did he just do? We made a trade here. Again liquidity was created here. The market went up. What did you do here? Showed fake breakout.
[23:38] Also shown as fake breakout. Did not show fake breakouts. Its liquidity is Hunted. The sellers who came here earlier got SL, due to which their liquidity went down. The same thing happened which
[23:54] I just told you in a live example on the video, how the market works. How liquidity, if you look at the market overall, there is price action. The price went up and Then this is the resistance zone. Testing it here. came down. But here the
[24:07] liquidity. The market came down and fell to this level. Now if you wait for one or two more candles, you will see it coming here also. Ok? So, there is a live example of liquidity in front of you. And here also you will see that the same thing has been created. You have
[24:20] created a very large range, right? Fell down. SL stood up here. Then came down. Place a stop loss here. Came down here again. Place a stop loss here. Then went upstairs. SL Mare and down with a thud. And always keep one thing in mind that whenever there is a liquidity sweep in the market,
[24:34] mind that whenever there is a liquidity sweep in the market, always a big fall after that and see here also, we had just told that there is hitting both and if it has to come down then it will gobble up the liquidity from here and will
[24:50] it has to come down then it will gobble up the liquidity from here and will we have to identify liquidity. That is, where retailers place stop losses and the more stop losses they place, the bigger the range, the
[25:03] bigger the upper side or lower side stop losses of the range. The market will losses of the range. The market will go in the same direction as the market trend, but it will do so after hunting the stop loss of retailers. Ok? So did you understand this far? So this means if
[25:15] I stop placing my stop loss then my SL will not be hit. This is the most stop placing my stop loss then my SL will not be hit because the market knows where the liquidity is available. Now let me tell you how to avoid liquidity sweep
[25:28] we will play the board again and try to understand this thing a little deeply, and try to understand this thing a little deeply, understood this. Now what needs to be done to avoid liquidity sweeps , liquidity crabs,
[25:42] or hunting ? Look at everyone, you cannot escape because you are retailers but you can understand some things. First of all, you can understand some things. First of all,
[25:56] Right? We will have to understand this. Market trend higher time frame. If you work in 15 minutes, your trading happens in 15 minutes, 5 minutes, 1 minute, 30 minutes, anything. This is your trading entry and exit zone. But
[26:09] you have to understand one thing that before entering this season, what will you have to do in the higher time frame i.e. before entering this season, what will you have to do in the higher time frame i.e. 1 hour, 4 hours, one day, whatever it is ? The trend will have to be identified. That is,
[26:23] what trend is going on in the larger time frame ? If there is an uptrend in the larger time frame, does it mean where are the big players taking the market? Above. A This means where are the big players taking the market? Below Below Now
[26:37] understand one thing in this. Where does the liquidity sweep take place ? When the market is going in an uptrend, ? When the market is going in an uptrend, we are buying. So, the ones who bear the most are right? If they are buying here then there will be a
[26:50] liquidity sweep somewhere here. Here for example our price is going like this. It is going like this. Now you will say bye here. This will create a range here. Isn't it ? And a lot of bears will come here and most of the SL will be lying here.
[27:06] What will the market do? He will hunt this down and then he will do this. Ok? The market has gone up. But what does Try Market do? Take a stop loss. Yes buyers retailers because then the price came down. Then Price created some such range.
[27:20] it looks so good to you. Isn't it ? And the market hit your SL below. You felt like you had a breakdown. Sellers also came. The market went up. But where is the market going So the overall trend is bullish for us.
[27:37] simple way to avoid this hunting. First of all, which trend is going on in higher time frame. Then when we come to enter or exit in the lower time frame. After that we never have to
[27:51] enter in the first breakout breakdown. Most of the hunting happens in that. For example, this is the price. The price came down. You have created a range, right? here you are. We became something like that. Breakout. Now people will
[28:05] think this is a great breakout. What will the market do? He will do something like this. All the buyers who came here were killed. Now this is first. Now from here if But what do you know? What is the overall trend?
[28:19] is bullish. I will not make a short trade but many people make short trades here immediately because they have not seen the overall trend. Isn't it? Down here, what do these buyers who are already sitting here have left after buying
[28:32] ? SL Market took their SL and the market went away like this. Ok? So first of all, whenever the market sits in a range for the first time, a halts somewhere. There are only two types of markets.
[28:46] is sideways. An up trend in trending. A down trend in trending. Sideways always has a larger range. So after that whenever the first breakout or breakdown occurs in the range, big candle or spy candle, never
[28:59] liquidity is disappearing there, it is being swept away , you will get trapped in it. Secondly, if any for example breakout comes, price range is done, then it comes here, makes something like this, breakout is coming, after coming it gives a pullback. If the loan is coming out,
[29:15] gives a pullback. If the loan is coming out, you have to enter it here. And where should that breakout be? You should be in the same direction in which the market is going. same direction in which the market is going.
[29:27] This removed the range and broke it. Giving a breakout, giving a pullback. Again same direction momentum is coming. It means that it is genuine. That means it is much better than such fakes. You can never be 100% sure that there won't be a liquidity sweep or gab with me here.
[29:41] I will not be hunted. But your chances here will be less in comparison to this. Because you have confirmation here. In confirmation, your you suddenly enter anywhere on breakout or breakdown then you get
[29:57] trapped in SL hunting. And at times when the market is moving in a range. The market is moving in any range. Never take big positions within this range. Because he is in range. Never take large positions unless the market is trending or directional. If it
[30:11] is in range then the only thing you can do is thing you can do is on the zone of resistance. There is a scale for short at the support zone, there is a scalp for long in the middle, only scalping will happen because
[30:24] you have to trade, you do not know for how long the range will last, but here we have to do only scalping, here we have to do only scalping, that too only scalping, that too in very small quantity, right, but if we want to make big
[30:36] moves, if we want to make big money, then we have to always make it in the direction and we have to make it in the direction when the market
[30:50] We should make the trade only after receiving confirmation. Only then are our chances of getting trapped in liquidity hunting reduced. Right? So I hope guys you have understood what is liquidity sweep or liquidity sweep or liquidity. Isn't it?
[31:05] Liquidity is created in the market by big players to fill their positions. And how is it created? I explained that to you. Isn't it? And when liquidity creation happens, on what basis does it happen? That happens on the basis of retailers.
[31:18] basis does it happen? That happens on the basis of retailers. The longer the range, the more stop losses there will be on both sides of the market and that is what the market requires. consumed by retailers. Who suffers the most loss?
[31:31] Retailers do. No institution is after another institution. He is working so hard so that most he could and made the most money he could. You must have seen a great example of Gent Street.
[31:47] Its news will come in the Indian market. Google Street News about the Indian market. How much money has he made in the Indian market? Isn't it? Does all the algorithmic trading. He has created such strategies which perhaps an ordinary person
[32:01] cannot even imagine. Isn't it? Their bots trade like this. This is how Nifty Bank Nifty options are executed. Meaning that this is how he eats people's slimes. Do you understand? What do you eat for? So that they can make money. So big players always
[32:14] eat retailers and if you want to save yourself from the trap of big players. You can never escape. But your basal hunting probability will decrease. If it reduces, you will gradually become profitable according to your risk reward. Isn't it
[32:28] ? And that is why if you want to do Algo based AI based trading then that thing is available in Lemon right now, so you can take advantage of it. And you must try it once. And I am sure that it will help you a lot
[32:41] not have any idea how to work. So there are pre-built not know when to make a trade in my strategy. [MUSIC] So there when is the trade being formed, when and where should the SL be placed , where should the target be placed. All
[32:55] things come. So you should definitely go and try it once. And I am sure you will understand it very well in that. And then come to this video of mine and you understand the concept of liquidity then it is well and good. If it doesn't come then I will make another video.
[33:09] And after this, Liquidity Is that what happened? Yes. So you can come back to the chart and see how well the concept of liquidity works. Isn't it? There was
[33:24] liquidity here. Hunt. Where did you go after hunting? Came down. Right? So the same thing would have happened. But What is the market trend? Bearish. It is bearish. The market is going there. But right now, there is a
[33:41] Retailers will also become sellers. But sellers also have stop losses. So their stop loss will be hit and then it will go in the same direction. And those who might have shorted here. Isn't it? What will he say now? Hey friend,
[33:53] took my stop loss. Then he came under my direction. [ __ ], that's how the market does it to market is not your enemy. The rivalry is with every retailer in the market and retailers will have to protect themselves by learning all these important concepts
[34:07] so that they can trade better and become better traders and hit stop losses less often. If you like the video and subscribe to the channel. See you in the next video. And in the next video we're going to talk about FVG. FVG means
[34:20] Fair Value Gap. There are huge gaps in between which the market always comes to fulfill and if you understand that then you will learn to enter the market at the right place. Wait for the next episode. See you in the next video. Till then by-b see you. Jai Hind.
[34:38] Till then by-b see you. Jai Hind. [music]