Liquidity

The FOREX market is a zero sum game, which means that for a trader/institution to buy/sell 1
currency pair it's necessary that there is another trader/institution with an opposite position.
If Smart Money (Banks) want to buy a currency pair they will need sellers in the market, the
existing facility to place these positions In the market is called ​LIQUIDITY.

The​ Liquidity i​s defined by Stop losses, where the Stop losses exist is where the​ liquidity
also exists, Smart Money need to activate the stop losses of existing orders in the market so
that they can place their positions in the market.

The banks manipulate the price because of ​liquidity​, but why? Banks negotiate large
trading volumes and sometimes find it difficult to find the other side of their trades, so they
manipulate the price so that they can have their positions in the market.

LIQUIDITY TYPES
In the FOREX market there are two types of
liquidity, which are:
1. Buy Side Liquidity (BSL)
2. Sell Side Liquidity (SSL)

Buy Side Liquidity (BSL)

The BSL is originated by Stop Losses of sell orders, after the BSL is taken, the market
reverses to the downside, because banks use the BSL to place sell orders in the market.

What to focus on (for BSL)

PMH - Previous Month High
PWH - Previous Week High
PDH - Previous Day High
HOD - High Of Day
OLD HIGH - Swing High
EQUAL HIGHS = Retail Resistance
 Sell Side Liquidity (SSL)
The SSL is originated by Stop Losses of Buy orders, after the SSL is taken, the market reverses to the
Upside, because banks use the SSL to place Buy orders in the market.

What to focus on (for SSL)

PML - Previous Month Low
PWL - Previous Week Low
PDL - Previous Day Low
LOD - Low Of Day
OLD LOW - Swing Low
EQUAL LOWS = Retail Support
 When​ BSL​ is taken, the market reverses to the ​downside​.
When ​SSL​ is taken, the market reverses to the​ upside​.

Stop Hunt: Manipulation For Liquidity

SH is a movement used to neutralize​ liquidity​ (stop losses). It's a false breakout above / below the zone
where there is​ LIQUIDITY​. THE MARKET MARKERS (BANKS) USUALLY USE HIGH IMPACT NEWS TO TAKE
LIQUIDITY​.

High Impact News Events

The High Impact News Events are used to hunt ​liquidity​ in the market, always pay attention to the news
calendar, to know the pairs that will move, generally, pairs with many news forecasts ("High Impact"),
those pairs are going to move (trending) during the day or week.
 All of this done through trusts and shell corporations. Every single tradable asset is programmed and
controlled by a central authority. The manipulation of these tradable markets used to be done daily by
hand. Thanks to technology it has now been programmed. The assets trade off of an algorithm whose
sole purpose is to seek​ liquidity​. ​Liquidity​ will always be formed in the market above and below current
market structure (where people place their stop losses and/or buy/sell stops for breakout plays). These
pockets of​ liquidity​ grow in size based upon the chart timeframe being viewed and the distance away
from that point we have traveled. It simply seeks the side that contains the largest pool to be raided
(banks are greedy). You need to let go of 99% of fundamental analysis when it comes to trading. The only
place fundamentals hold a place is in stocks and commodities as stock movement does have some
basis on fundamentals since it's representative of a singular company and their efficacy as a business,
while commodities like soybeans and coffee etc all have real supply and demand factors because of
agricultural production. That being said, world currencies traded in the foreign exchange market (forex)
are 100% manipulated and controlled with very specific signatures in price that leave footprints behind
for us to follow in exacting market direction and turning points. 90% of what is taught in trading books is
taught specifically for the reason of misdirection. If you want a very clear example of this, go on to a 15
minute chart on any given asset and look for equal highs or equal lows on the chart and watch how these
"double tops and bottoms" get raided shortly after forming. It's why trading retail chart patterns is such
a subjective practice. Because they only work in specific market environments based upon an
institutional level of market bias/direction. The double tops and bottoms that hold up are ones that form
in line with the bank's intended market direction whereas all others are formed simply to create pockets
of intraday ​liquidity​ that can be raided to continue on the intended higher timeframe directional bias set
by the central banking algo. Ie a double top (equal highs) are formed on a 15 minute chart but the overall
trend direction on the daily chart is down. The intraday double top formed will create a pocket of
liquidity​ formed by buy limits and buy stops set at or above the equal highs by day traders going into
short positions (buy stops) and other traders waiting for a volatility breakout play above the highs to go
long (buy limits). Price will seek this area of ​liquidity​ to facilitate the necessary equity needed to
continue the move lower on the higher timeframe daily directional premise as well as create a profit
taking opportunity for the institutions heavily invested in this higher timeframe cascading of price.