How to Use Liquidity in Trading? || Masterclass

Liquidity is a word you hear everywhere in traders 'lives. I'll take you from basic to advanced. Where will you find that liquidity? Where will you make your entry? Entry is the most important thing in trading. Poor entry has a large stop-loss, doesn't get a TP, and incurs a loss. This means you won't always hit a target, but I'll help you improve your entries. Watch this video carefully. This is a very exclusive session. So guys, welcome to this class , and in this class, I'd like to tell you what the most important thing is in trading. Obviously, trading begins when you make your entry. Entry means where to enter? Where to enter? Do you need a stop-loss? Do you need a TP? These are the processes that follow. But the most common question is entry. So, how do you make a perfect entry? How to make a good entry? A perfect entry? How do you make an entry? So, just in the basics, you'll know this much. There are only two points to trade. First, you identify an important level. Right? You identify an important level. And after identifying that important level, you observe the price action there. This is the world's shortest and most effective trading strategy. Which one? You identify an important level. You observe the price action there, thinking, "Hey, look, there's an important resistance level. If I find price action at that resistance level, and if the market crashes, I can sell." Simple, correct. You all know this. Now , you might be thinking, "Okay, sir, I already know this, tell me something new." No, there's no need to invent anything new. We need to build our base here. Now, we need to focus on how to do this better. Now, let me explain. Now, look at what we were talking about : liquidity. What does liquidity mean? Liquidity is a term that has become more commonly used recently. But we've been using it since the beginning. 2018 , since 1920. It's no big deal. So, what does liquidity mean? I'll get to that and give you examples of the best liquidity locations. That's all we'll be discussing in today's class. So, overall, today we'll discuss these two points: important levels. How to find very, very, very important levels. That's it. That's all there is to today's story. Okay? Come on, come on. So, what does liquidity mean? What does liquidity mean? If you ever look at an important level, brother, let me tell you the simplest thing: liquidity. Look , you can see many different types of liquidity in heat maps. Even taking that class won't be beneficial because most of you aren't taking the subscription. So, only those who have a subscription can take it. Still, I will try it and show you someday. I'll teach a class on that too. But without resorting to expensive software, without resorting to any other tools, how can we determine where liquidity is by looking at the price? Everyone knows that it happens at swing highs, swing lows, and so on. So, okay? So, let's improve on that: liquidity means levels . Liquidity is always above or below important levels. Okay? Liquidity is there. So, we have to find those levels . So, I'll create you the perfect levels of my choice, which you can use. So let's get started. For example, if I bring it here, if I go to the charts, whether it's NASDC or anything else, and open the daily time frame, for example, what have we learned so far? How is the demand zone? When I pulled this wick forward, this one also appeared, and when I pulled it forward, the body also appeared. So, I found a good level. But then this could also be a level. Then this could also be an important level. So, many such important levels will be created in life. I created this in the daily time frame. Suppose I want to trade gold. If I open a gold chart. If I open a gold chart and I come to 15 on the gold chart, how do I create this important level? Okay? I can create an important level like this: Brother, this is an important level. I marked it high. It is an important level. I have to match that this was the market close. If it came from here, it became a great support. So, I marked two levels here. Okay? This is also an important liquidity level. I am not using the word liquidity. I am just using the word level. Okay? If I look closely, I see an important level here, where I marked a level. So, see what I'm telling you? Whenever we mark levels like this, the market fell from here. Why did it fall? The market fell from here. Why did it fall? The market fell from here. Why did it fall? This is the third time I've asked a question. Why did it fall? Because the market received a lot of selling pressure here . How is selling pressure created? It's created through sell orders. We call sell orders or buy orders liquidity; where there are a lot of orders, we say there's good liquidity in the market. So, if you learn any point anywhere, where is there more liquidity? Liquidity exists everywhere. Okay? It's not that there's no liquidity. If there's no liquidity, there won't be any movement in the market. Where is there more liquidity? High probability. This is our job to learn. So the biggest thing is that you'll be marking levels everywhere. Levels will keep getting marked. But if you want to trade, you need to understand the high-probability areas. I'll start with the gold chart. I'll come quickly. I'm telling you, when you start looking, you'll find 100 things. I'm telling you . The number one thing is that the best liquidity points are the previous day's high, the previous day's low, and the previous day's close. These three things are found, and actually there's the previous day's open. There are four things: high, low, close, and open. So, open and close have no meaning. Where? In our 24-hour market, where there's no central exchange. There's no central exchange. Gold, silver, etc., have no special meaning. They have meaning in the NSE/DC, they have meaning in the Nifty because they run the NSE/NSC. Okay? And if they have meaning in comics, then comics charts have meaning . So, I'm removing these for the gold market: previous day high, previous day low. Okay? The second, related to this, is the current day high and current day low. But timing matters a lot here, as to what time to look. This is very important. After that, my favorite areas to trade are the value area high and value area low. Value area high, value area low, volume profile. We'll talk about volume profile once more. People also use POC. We shouldn't use that POC; we only trade the value area high and value area low. Okay? Other than this, if I consider an important liquidity area, it's the HTF of a larger time frame. Okay? Order block. Everyone knows what HTF means. Here, it's for larger time frames, like 15 minutes or 1 hour, not below that. Going to 5 minutes, there's a low probability. I trade often. But according to me, the order block is for 15 minutes or 1 hour. Okay, and I've written these four things in front of you. Half of you probably don't know. I'll show you one. Half of you might know. Half of you do, but do you still use it? Tell me honestly. If you know, what's your actual problem? What's the problem of half of you? They know 10 other topics after this one, and they have to mix all 14. Am I right? Are you mixing everything? When the market opens, you don't know which one to place? Am I right? Is it a real problem ? Trading also has two components: study and execution. When you go to execute, you lose your mind. Am I right ? So, this is the first thing you have to understand. I teach you different things in each class. And I always say the same thing: you have to leave something on the table. You have to leave something behind in the market. If you try to take everything and leave , you'll only end up with a loss because you'll overtrade. So, I've told you my favorites. Besides this, I can tell you 25 more things you can use to trade. Where there's liquidity. But guys, like, write down the session high and low. Session high and low. But brother, it works very poorly. You guys have already tried it. If the London high sweeps, do this. If the Asian low sweeps, it works so well. Everyone knows that if it were working so well here, it wouldn't be working. And I'm leaving with one more bonus point. I'm leaving with one more bonus point. I mean, this will be useful in some swings. It can also be used in intraday . But the POC of one swing. I've told you five things. So, guys, let's start studying these five things quickly. Okay? So first, let's go and study what the previous day high and previous day low are, and whether they're useful. So , let's start by working on the gold chart. Okay? After we've gone to the gold chart, we need to find out where our previous day high and previous day low are. How do we find them? Simply go and turn on the session break. So, sometimes you realize, "Look, if you want to trade this day, this is my daily high. High means you'll mark it by week. This is my high, and this is my daily low, and this becomes your liquidity level." I'll answer you why. Why is this the liquidity level? Why am I calling it the liquidity level? Look, tell me one thing: if the market came up to this level on Thursday and then went down and broke the high. It broke, broke, broke. If this is the high point , why couldn't it break beyond this? Because if it were to go above that, some people would be hurt. Which people ? Big people. Big people means listen carefully to the word. You must have heard "institution." Okay? So now listen, listen to these words. Dealer. What does dealer mean? Who is a dealer? The one who deals on behalf of all these big institutions, who maintains hedging. The big money, that is, they have built their positions in options, gold, gold futures, and the gold cash market in such a way that if the market were to go above this, they would have taken positions on both sides, and their losses would have increased. This was the point where selling liquidity entered the market, and the market could not consistently break its high. So this was the point, this was the exact point that did what? It invited liquidity. What was that liquidity? It was on the sell side for now. We don't know what kind of liquidity exists at the top? It's called SSL. SSL means sell-side liquidity, a fancy term. In reality, it's simply downward liquidity . So, that's why there's liquidity here . I also told you someone has been active there. Who has been active? Big-money dealers, not dealers, but dealers, who have either opened their hedges there and then exited, placing a large number of long or short positions . We don't know what happened—we don't know which option was sold, which option was bought, which future was sold, or what else. But we do know. So this is a very beautiful liquidity point. And if you look at it, the market reacts the next day. If the market comes in, breaks out, gains full liquidity, and breaks down. After the breakdown, if you look here, it's a very nice trade. No stop loss is blown because, brother, this is a fair value gap. The market comes in, traps that fair value gap, and breaks down again. If I go for five minutes, I could make a better entry here. So the market crashed like this, twice. So, the market didn't reach the first point low . Let me look at another example. Let me look at the one before this. This day, the market didn't go below the low . This day, the market also went to' OK 'here.' Okay, it went to 'OK' here. Look, if you focus only on this much, and say, 'Sir, I don't want to trade at all.' The previous day has come. 'Well, it's here, brother.' It's here, brother . It's here. Look, the previous day. ' OK, it's not tradable.' Obviously, it's like 12:00 at night, but look at the market! What a great place, brother! It's a two-day level here. But let me ask you, if the market turned from here , would that mean the big players would be hurt? What if it went below this? Or look, when the market was here, could someone say that the big players were in the mood to inject liquidity here? Some might say so, some might not. But when the market did this, it wasn't even that much, it wasn't even that much, it was the entire market at this level. Look, that low isn't being breached. Now, can I say that if the market goes back to that point, the same dealers, the same group of buyers, will come back to buy. Will they? You won't find such a strong point anywhere in the market. That's how it is in trading. You watch these trading charts day and night. Yet sometimes, something comes to mind, "Man, that's right. I don't know why I don't use it in the live market? Because the live market has different problems, guys. We'll also be conducting psychology classes on different weekends. I'll make you realize even this basic thing: why should we only take one trade a day when it comes? That's all I wanted to say. Now, I'm deleting this and just wanting to tell you that when this thing came, it wasn't proven. But look what happened next? The market went up, up, up. The market crashed dangerously. After crashing, it came down, and closed higher. If we had bought at this point, the market would have swept the entire high the next day. Look, the next day, the high was swept somewhere here. Our target is the high. Right? So , if you look closely, in my opinion, the strongest point in this world is the low point of any day and its high point. Obviously, we're not getting a 100%win rate. Let's look at another example. This is the low point here. Look, the market has twice seen liquidity slip at this low point. No one trades at this time. We trade at this time. It's an event candle. It's an event candle. It's dangerous, brother. What good is the market, forget about events? Some people might be trading at 9:30 in the morning. If you had taken it at 9:30, too. What a basic, but useful thing. I haven't placed a single SL yet. Ever since we started talking about it, let's look at another example. And let's look at a few high sweeps somewhere. Here, look at this day's high sweep. Here, take it . Make your own high sweep here. What could be a more beautiful trading example than this? A great sweep in 5 minutes. Hit this candle. Brother, this is the top of the market. Crash. So, guys, if there's one, my favorite and most powerful tool, what is it? Not the previous day's close and open, but the high and low. And which one? Based on the body or the wick. What happens when the market enters there? When the market enters there, liquidity is injected into the market. Well, liquidity doesn't just mean that. There are limit orders there. Limit orders are always there. New market orders are also placed there, and the market continuously exerts power there. So, what do you understand here? You have to trade according to the wick. You mark the high and low according to the wick and work. Okay? So, we need to focus on the weekly high and low, and we need to make sure there's a sweep. Even when trading on the touch, you'll work on a low quality stop loss. A small stop loss will come and go, and then your usual sweep is a liquidity sweep. That's it. Let's move on to the next point. This is less powerful, but it also has a trick. We're going to read CDL (CDH): the current day high and current day low. What is this? What's the problem? What time should I check it? You'll always see this whenever there's a sweep of the current day high and low, when a meaningful body has formed in the market. I'll explain what it means. Come to the daily chart and see how much gold is moving on average. There's a method for this. Actually, there's an indicator called ATR. I don't use it myself, but let's try it. Come in front of everyone . So, ATR tells us what to expect. Wait , let's see. What is ATR saying? Okay. The ATR indicator is great. Remember to look at the daily time frame. But it's on the daily time frame, isn't it? Not on any other time frame. If you look at the daily time frame, the market moves $ 100. On average, it's 108, right? Anything less. Pull back a little at 80. If it says 100, assume 80. So, gold moves $ 80. Okay? Now, let me give you a simple, common-sense example. Suppose gold moves $ 80. Okay? On a daily time frame. What is a daily time frame? A daily time frame candle is formed like this in 5 minutes. How is it formed? This is how it is formed for a daily time frame. This is how it is formed. Now, if you're going to sweep the current day's high and low, suppose the candle is this small. It's this small. Right now, the market is in this small range. It's moving like this within this small range. Now, you'll start sweeping this. If you say," Sir, it doesn't work, "then your knowledge here isn't perfect. It's not perfect. It means you're not using common sense. You're thinking," If this sweep happens , the market will crash and I'll make money. "Hey, are you crazy? Let the market drift a little. How much should I let it drift? At least look at the market. Trade at the current day's high and low. 80R-20%. Let it drift. If your market has pulled this far and a sweep is happening here, then you have to take the trade. Now, let me show you an example. Okay? I'll show you an example . I'll take you to 5 minutes. Okay? Come here, 5 minutes. And I say," Let's simplify the formula a little. Let's make it ATR-30%. 30%. Okay? Now, guys, let me show you a trade here. Why can this trade work here? Timing matters. " I mean, what's the timing? This thing can be at any time. Look, it's 3:00 in the afternoon, 4:00 in the afternoon, 4:00 in the evening. Now, if I just look at today's high, low, current day high, low, what does" high "mean? Low means this weekly point is high, this weekly point is low. Should I consider these points liquidity points? What did I say, what do you want to find, brother, how much should the ATR () move? -30%means $ 0. If the market moves, I mean, the number will keep changing all the time, 50, 60, 70. So, measure it once with a scale. How much is this move? Suppose it were 69, I would still say" OK. "Remember, you need to use your brain a little. What I want to say is, if this range were $ 20 or $ 30, would I respect it? No. What is my range of highs and lows? If I subtract 30%from the ATR, look at this level. What happens? Why do people who buy from here incur losses? See. What will happen now? What will the market do? The market will go up. And look, they've blown it, blown it, didn't give it a closing. A proper green candle didn't form, and they've blown it, so they've read the liquidity, but they can't see the price action. Why would you buy? I got a buying confirmation. I got it within 5 minutes. But did I close above my level? I didn't. Well, brother, I didn't. Someone might have a question," Sir, there's a retest. "So what should you do? You're a retest trader. Look, there's a great psychological point here. Now, how does the market move people? Look, people think it's a retest. Now it's going to crash down. But what liquidity is there below the current day's low at this point? Is it sell-side liquidity or buy-side liquidity? Actually, I'm asking you the wrong question. Trust me , I made a mistake. I asked the wrong question on Flow Flow. I don't even know the answer. I don't even know. Technically, it would be on the buy side. That's what we've been studying. But the market could also explode if some news comes. Therefore, we should never be overconfident that it can't go down. But even if it is going down, we don't know that. But do I know who I am ? Am I a trap trader, a liquidity sweep trader, or a retest trader? Please give me an answer. Do I know this for sure? Do I know 100%who I am? But what people do is change, people change. People suddenly change from trap to retest. So , don't become a retest feeder if you trade trap. And if you trade retest, what should you do? Trade retests only. You shouldn't repeatedly make separate trades. This is a very dangerous point. In the live market, you'll be blown away, saying," Sir, this is a retest. " " Even if the retest is over, you don't have to do anything; it's over. "Should I buy? The retest's charades are gone, brother. And you buy here, and this is going to be a perfect target. And this is a great stop-loss for a minute. Look , why don't they say to stick a stop-loss? If this is my SL, will I place it there? This is a great example , friend. This is a great example, brother. This is showing the reality of the market. What an example this is. If I have to place a stop-loss at 4304, will I place it there? No, my friend, I'll place it at least $ 3 lower. I'll place it here. 4300 is a round number, isn't it? I'll place my stop-loss here. Brother, what a move the market has made. Look, what a great move. If we talk about risk-reward ratio, it gave us a very good move here. We're working on a 15-minute time frame. Therefore, a large stop loss will give us a big target. So, this is an example. Look, let me tell you, our stop loss could be hit in this trade. We could break even. I don't want to work from trade to trade. I just want to tell you this: the SL could be hit. No problem. If the SL is hit, then nothing happens. I assume the SL is hit. No problem. But the learning stage remains intact. Okay ? If you don't want to place such a large stop loss, then our stop loss will be hit. Then the market will go up , but the market will go down. Overall, I've also taught you the liquidity of the previous day's high and low. The only thing you need to check in the market for the current day's high and current day's low is the ATR. ATR in Hindi means how much the market moves in a day. Usually, the gold market is moving around $ 1 these days. Sometimes its range is 80. So, subtract 20.30% from its range. If it's 80, consider it 50. If it's 100, consider it 70. Do you subtract 20.30%from it? Suppose the ATR is 80. I want to trade. My ATR market has just moved $ 25. It could move further. This is like the market could break out the current day high and low. You can trade breakouts at the current day high and low, but you always need to pay attention there. You shouldn't focus on the current day high and low levels unless the market makes a big move. And if the market makes a small move, then break out. But I'd ask why? Don't force yourself into anything new, just give it up. Let's just say it goes completely sideways, then it's pointless. Okay? 10%value area high, value area low, HTF plus order block, swing POC. What does HTF plus order block mean? It's simple. If you trade on what time frame? You trade on five. If you trade on 5 minutes, what do you have to do? You have to bring yourself to a 15-minute time frame. If you're a 5-minute trader, you'll come to 15. If you're a 15-minute trader, you'll go to 1 hour. I'll say come to 15. You'll come to 15 minutes, and on 15 minutes, only the top and bottom orders. In any swing, look for the top and bottom orders. For example, look for the top and bottom orders here. Where should we look? Let's look anywhere here. Can you see the order block here? I can see the order block. There's an order block here because there's still a fair cap left in the market, and this is also a level. Okay. Is this respected? Let's see. Okay. Okay. The respect is there, but the SL is there. What can we do? The SL will be here. If we respect this order block here, the SL will be here. But okay? The SL will be here. And let's see where the order block is? Okay, here's a lovely order block. Which one? This one is a doji. And an order block whose high has also been swept by the market. Pull it, it worked , but you won't trade at this time at night. Look, the market broke out here. It swept it. If you short here, what's the point? You just need to find the top and bottom order blocks. Okay? You short here. Okay? If you short here, the stop loss will come above this level. Okay? And if you're thinking," I can't take a stop loss of $ 21. I have to take less quantity at such times. " What can you do? But there's a risk calculator form in Superior. Go to the risk calculator form. Enter a stop loss . The quantity will decrease. But you wanted a risk reward of two. You'll get that. Yes. You can't do it now. Sir, I don't want to. How do I short? How do I short? So what do I do at this time? Just a shift of five minutes. After the shift to five, there's only one way left for us to short. Okay? Where? It was here. Now you have to find a fair value gap here. Brother, either let this trade go or you were going to enter here. So, either let it go or do one thing: create a fair value gap. There was a gap here and another gap here. You just pray that the market respects this fair value gap. Brother, the red candle did it, it respected it. Take a shot or place a stop loss. Sir, I'm scared. Short here. No problem. Short here. Now, if you short here, you don't need to set a stop-loss at the day's high. This stop-loss is because the fair value gap has been respected. You simply set a high at the fair value gap. You can set a stop-loss of $ 2, right? And what I'm describing happens five to seven times out of 10. It doesn't happen three times. Three times , it falls straight away. Because of those three times, we take a risk ten times out of ten. Wait. So, look at it, what you wanted here has become possible. And this isn't just some memorized example. No, I don't remember the charts. I'm the kind of person who doesn't remember anything. I don't remember anything. I ask people everything. I Google it. I look at the charts. It's stupid to keep data here. So, look at this concept. So, I also showed you that you can't take a large stop-loss. I practice practical trading , I know. So this is our entry. If that wasn't possible, and luckily I found it . Okay? So, remember, brother, the third best thing I told you about. Previous day high-low is a great thing. I think it's the strongest. You'll need to apply some current day high-low timing and ATR. Right? HTF plus order blocks never go on 5-minute order blocks. I mean, you'll watch me some time. I'm following the 5-minute YouTube live. But I have to take the trade on YouTube live. I have to take it right now. I have to give it to 10 people. Now you'll ask me why I do it? Exactly, I have to make myself stronger so that I don't sit even on YouTube live. Sit for four hours. What's wrong with you guys? Take trades, take trades . So, I have to become stronger. I shouldn't take trades either. Below 15, my quality will improve. If six of my 10 targets are four SLs, then those seven targets will become three SLs. Now, I'll skip these two topics: the value area, low-high-low, and the swing low. I'll complete them on the next topic. So, let's finish today's class here. So, guys, I hope you enjoyed it. I cut the Q&A because Q&A is only conducted live. Anyway, if you have any questions, please comment. I'll be sure to answer. How did you like the class? How was the class? Do you want more from such classes? So, guys, target likes. This time, I'm asking for 12,000 likes. We'll just target 12,000 likes and mark your attendance. Where were you watching this class from? Enter your name. Enter your city. Okay? I'll repeat this again. If you want to join similar live classes, first go to my Telegram channel. All the details are available there, including when the schedule is released and what date I usually do it on weekends. I can do it on Saturdays, Sundays, or in between. The schedule can be found on my Telegram channel, and you'll need to register first. Click on this link. It'll ask for details, so fill it in. Before that, you'll also need to enter your Exness or Superior ID number. I hope your account will be open through our referrals. If not, you'll find these links here. Whether it's Exness or Superior, both are excellent brokers . Open your account. Then, enter that ID on your Zoom. You can also attend live, chat, and learn about such things timely. Okay? You get to read it first, too. So, okay? Thank you so much. See you in the next video.