Liquidity: Buy-Side & Sell-Side - ICT Concepts

[00:04] foreign [Music] going to cover liquidity buy side and cell side liquidity and we will mainly

[00:17] be focused on Old highs and old lows as well as equal highs and equal lows before we get into anything the first thing we need to understand is Swing points in the market because this is how we determine where liquidity is resting

[00:29] we determine where liquidity is resting so over here we have a swing low and how do we determine if we have a swing low well we have a low right here with a higher low to the left and a higher low to the right and that makes this a swing

[00:44] to the right and that makes this a swing low similarly over here we have a high with a lower high on the left and a lower high on the right that makes this a swing high now to understand why this is important we have to understand the

[00:58] psychology of Traders if someone was to get long in this area here they are likely to put their stop on the swing low similarly over here if they're going to get short they're likely to put their

[01:11] stop on this swing high with that understanding we know that there are cell stops resting under here and buy stops resting above here with the cell stops resting below here we call this cell side liquidity and with the buy

[01:26] stops resting above here we call this bicide liquidity smart money will look to pair orders below these lows and above these highs so let's get into the charts and look at some examples we are now going to practice identifying these

[01:39] swing points or buy side and sell side liquidity so looking at this four hour chart here where are the obvious highs and lows we have a low right here this would be sell side liquidity

[01:54] because you notice we have a low with a higher low and a higher low on each side we have a high right here with a lower high on each side so this would be our five side liquidity now if you notice what did we just put

[02:10] we put in another swing point because we have a high with a lower high on each so this would be considered by side liquidity moving this forward you can see

[02:26] price takes out this I so now I'm not worried about buy side liquidity here worried about buy side liquidity here and it now moves to over here because we have a high with a lower high on this side and I'm anticipating a new lower

[02:40] high on this side right so lower high here similarly now right so lower high here similarly now we just took out this low over here

[02:53] on each side letting this continue and focusing on these swing points focusing on these swing points just put in a new one there

[03:10] take out this previous low those are now relatively equal those and so those are relatively equal those and so those are just sell side liquidity together

[03:23] in a lower high on this side this will become our buy side liquidity which it does now we have buy side resting here

[03:40] and if you notice we do put in a new swing low right here but I'm going to focus on the really obvious highs and lows on the outside of the range but there we go we go reach all the way up to this high now

[03:54] if we put in a swing up here we will have new buy side liquidity which we do I'll have buy-side liquidity resting I'll have buy-side liquidity resting here

[04:18] and this is reaching for that buy side up there and now that is taken if we put in a swing low swing low now this becomes our buy side liquidity

[04:30] and you can see how this continues the next thing we are going to look at are two types of liquidity and those are old highs and lows in a relatively equal highs in the post and so I have them marked out on the chart here from the

[04:44] it can look like this where you have two different swing points that are relatively equal or very close together forming a relatively equal highs or lows or lows in this case or when you have highs that are all clustered together

[04:59] highs these old highs and old lows just refer to a previous high or low where a single swing point stands out like that

[05:11] liquidity levels that I always have marked out on my chart or at least know where they are located and the first one would be previous week's high and low so if we look at this previous week here is a Tuesday low

[05:26] this previous week here is a Tuesday low and here is Thursday high and why I Mark these out is it's a pretty easy draw on liquidity or a way to frame a reversal so looking at this we take this previous week's high back

[05:40] into this fair value Gap and then from here what do we do we expand higher that is something I always have marked out on my chart the next liquidity level I always have marked out on my chart previous day high

[05:53] and previous day low I can either frame a reversal or use it as a draw and in this case here you can see it was used as a draw and previous day high was taken out before expanding higher in the last levels of liquidity I always have

[06:08] marked out on my chart are session highs and lows so in this case shown I have Asia session I in low London session high and low and these can be used to frame a narrative a draw or a reversal as well let's take a look at some

[06:23] examples here and how using session highs and lows can work out so if you notice here we have our Asia session low that's already been taken but above us we have Asia session High London session high and London session low all have not

[06:39] been reached so as we go into New York open we get a move up we take that London session High Reach for midnight session High Reach for midnight we end up taking that Asia session I as

[06:53] now do we get a nice break of structure not really yet looking in here do we have any sort of setup we do have a five minute fair

[07:08] setup we do have a five minute fair value Gap here of that no body closes even in the fair value Gap

[07:20] and then where do we go for or where is our Target well we still have equal lows from London session sitting right there

[07:34] Gap and there we reach our London session low so you can see how just using these liquidity levels Asia high and low London session high and low New York can be framed off of that

[07:48] so let's go ahead to the next day so looking at this next day we will also so looking at this next day we will also Mark out our previous day high and low right here and right here and we'll go ahead and watch this stay play out from

[08:01] ahead and watch this stay play out from Asia it's right here you can see Asia hide being created being taken now we get London session see what happens and there we go so we take our London

[08:15] session alone and Asian session low no real displacement below here let's see what happens we start to get displacement up we have a five minute fair value Gap here see if that gets tagged

[08:29] it does get tagged now where would I want to be targeting here well either want to be targeting here well either these liquidity levels here or one in session High London session High gets tagged we base

[08:41] around midnight no closes below end up sweeping this low if we are going to go somewhere else we've already taken session highs and lows but what do we have previous day high and low

[08:56] so as we start to expand up we get a move to the previous day high so taking out that liquidity level displacement over it liquidity level displacement over it and then we continue higher so hopefully

[09:11] that shows you how to use liquidity and what important liquidity levels you can Mark out if you don't know what to Mark out the indicator used in this video is free and I will link it in the description below also wanted to let you

[09:25] Discord so if you want to check that out the link will be in the description as the link will be in the description as well and I'll do my best to have a PDF document of this video out in the description before it releases but

[09:38] besides that if you did enjoy this video please give it a like And subscribe I hope you have a great rest of your day see ya