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I found a strategy so profitable that it
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got me this win this win this win and
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all of these win not only that but this
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strategy is set up in such a way that
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every single time you use it it gives
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you risk rewards that are absolutely
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insane meaning you're risking way less
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to receive way more and by the end of
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this video you'll be able to replicate
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this strategy and use it yourself to
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understand the strategy we have to
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understand two concepts and one of those
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Concepts is Market structure now every
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single chart you will look at will all
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follow the same Market Structure Theory
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I don't care if you're trading stocks
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crypto gold it's all the same every
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chart will have uptrends where the chart
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is moving upwards every chart will have
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downtrends where the chart is moving
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downwards and every chart will have
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consolidation between the two where
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price is moving sideways it's pretty
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simple actually we only want to enter
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long trades and uptrends and we only
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want to enter short trades and
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downtrends and we want to avoid
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consolidating markets like the bubonic
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play
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now I know what you're thinking while
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looking at this picture it's pretty
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obvious that this is an uptrend and this
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is a downtrend so you might be sitting
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here thinking you're wasting your time
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by watching this part of the video which
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it is pretty easy to spot uptrends and
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downtrends when you're looking at the
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past but when you start trading in real
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time it can be a lot more confusing and
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not a straightforward to identify these
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Trends and you're way more likely to
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make a
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mistake but there are a couple little
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tricks you can use to help you identify
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these Trends not only faster but a lot
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easier too to dumb it down a bit an
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uptrend will look like this where it's
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making higher highs and higher lows
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where price is continually breaking the
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previous highs when price breaks these
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highs this point is called a break of
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structure meaning it's breaking
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structure of the previous High a
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downtrend is the complete opposite where
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it's making lower highs and lower lows
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creating breaks up structure to the
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downside now as you already know all
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good things must come to an end we know
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when a bullish trend is coming to an end
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by watching the higher lows so for
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example our latest higher low is marked
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by this line and when price makes a
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break of structure of this higher low we
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can then expect it to make lower highs
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after this which is the start of a new
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downtrend leaving you with something
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that looks like this then the whole
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process repeats itself
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forever and if you look at any of your
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charts right now you'll see the same
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formation all over your charts so I did
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say there were two main Concepts to this
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strategy one of them is Market structure
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which is what we just went over and the
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other one is
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liquidity and this part is arguably the
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most important step but first let me
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show you a site called hanker trade ever
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heard of it there are Forex and crypt
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broker that have extremely low spreads
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and low commissions some of the best on
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the market which who doesn't like saving
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extremely friendly support team who will
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answer any type of question you have and
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the best part they are running a special
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promo where if you sign up with the link
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in my description they will match
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whatever you first deposit so if you put
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in $100 they will match that and give
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you $100 that sounds like a deal sign up
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with my link and make sure you use that
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special promo so going back to the video
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liquidity in its simplest form is just
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orders and orders are what move the
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market up or down without orders the
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market wouldn't really move so liquidity
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literally is what gives the market fuel
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to move so if you have a setup like this
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it's pretty common knowledge that you'll
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have sellers at the highs and buyers at
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the lows whenever these buyers and
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sellers enter into the market they will
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also be finding a place to set their
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stop losses oh that's hot that's hot so
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think of it like this if you're a buyer
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and you bought down here at this level
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it is very very likely that you'll place
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your stop loss below this low as if
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price goes below this low it would now
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be considered a downtrend and you don't
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want to be in a long trade in anymore
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and a lot of other Traders will be
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having the same exact mindset and doing
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the same exact thing so there will be a
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lot of stop losses in this area meaning
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there will be lots of resting liquidity
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in this area right below this low same
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goes for sellers up here if you're
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shorting from up here you'll most likely
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be placing your stop loss Above This
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High creating resting liquidity Above
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This high so now we have two areas of
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liquidity so if you're looking at this
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chart where is Price most likely to
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react well if you said in the middle
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area you're probably wrong because price
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is most likely to react where there are
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large numbers of liquidity and where are
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their large numbers of liquidity at the
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highs and lows meaning price will always
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try to Target and take out liquidity if
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you start to view trading like this
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it'll make your life so much easier so
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what's most likely to happen price will
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go up or down to the resting liquidity
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to try to Target it once it hits this
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liquidity it'll most likely try to
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Target the liquidity in the other
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direction ction so in other words you
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can think of liquidity as almost a false
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breakout then once that happens the
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process keeps repeating itself on and on
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again so remember in the beginning of
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the video I was going over how to
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identify Market structure we went over
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uptrends and downtrends but we never
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really went over consolidation which is
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when the market moves sideways and what
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I just taught you about liquidity ties
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perfectly into consolidating markets
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because if you have a chart like this
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where we previously were in an uptrend
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and then price starts to move sideways
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creating equal highs and equal lows this
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will naturally create huge pools of
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liquidity so if you're trading like the
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majority of people do you're going to be
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placing your stop losses down here below
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these lows if you're in a long trade if
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you're in a short trade you're going to
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be placing your stop losses up here
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above these highs which means there's
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resting liquidity above and below this
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consolidation and price will only have
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enough fuel to break this consolidation
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if it breaks into one of these areas of
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liquidity so as a potential trade we
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want price to hit one of these areas of
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liquidity then start to look for
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potential trade set up in the opposite
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direction as we know price will always
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Target liquidity so for example if price
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hits this upper area of liquidity we
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would then look for potential trade set
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up to the downside since there will be
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lots of stop losses fueling this move to
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head lower same goes for the opposite
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direction if price heads downwards first
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into this lower area of liquidity we
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would then look for potential trade
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setup to the upside so now that we know
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what both Market structure and liquidity
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are let's combine the two and make a
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strategy out of it so first things first
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we get a chart that looks like this
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making higher lows and higher highs and
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it's made breaks of structure to the
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upside so since this has happened we can
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easily see we're in an uptrend and we
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only want to take long trade next we
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need some form of liquidity so we can
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make sure there's enough fuel for our
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trade after this uptrend price does this
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where it created these equal lows and
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like I said before Whenever there are
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equal highs or equal lows that will mean
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there's lots of resting liquidity in
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those areas another Point since we're in
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an uptrend we want our liquidity to be
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towards the downside because like I said
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before you want to think of liquidity
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grabs as almost like a fake out so if
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we're in an uptrend we only want to look
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for long trades meaning we need to see a
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fake out to the downside first so we get
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lots of liquidity and only after that we
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look for a potential trade setup to the
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upside okay enough of that silly line
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stuff let's go to what you've all been
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waiting for let's go to a real life
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chart example to start us off the chart
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did this where it's making higher highs
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and higher lows making breaks of
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structure to the upside so we now know
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we're in an uptrend and we only want to
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look for long trades but this isn't
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really enough for us to enter yet so we
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need a bit more confirmation next price
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goes down a bit and does this where it
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starts to trade in a Zone and movees
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sideways now like I said before we never
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want to trade inside consolidating
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markets but if we look a bit closer down
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here here price made equal lows and like
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I said with equal lows that creates tons
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of liquidity so there will naturally be
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huge amounts of liquidity below these
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lows also note how this liquidity is
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towards the downside which is exactly
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what we want when looking for a long
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trade so next we want price to break
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these lows to get liquidity which is
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exactly what happens so we got our
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uptrend we got our liquidity next we
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need to find a place to enter to do that
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I see a beautiful demand zone right here
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if you're not familiar with supply and
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demand I made a full video going over
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just that you can click it in the top
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right hand corner of your screen to
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watch that video for a simple
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explanation of Supply demand though it's
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just an area where price consolidates
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and has a huge strong push in One
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Direction Where We place the zone is
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just the start of that move price does
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exactly that on this chart so we'll mark
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this area as our demand Zone price comes
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perfectly down to our demand Zone we
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enter the trade we're going to set her
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stop loss below the demand Zone and set
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her take profit at the high of the
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original move and just look at that risk
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to reward ratio let the trade play out
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and we get a super profitable trade
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similar situation here here we have a
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downtrend because price is making lower
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lows so now we know we're only looking
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for short trades which means we need
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liquidity heading towards the upside
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here we got equal highs which is
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absolutely perfect because now we have
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tons of liquidity above this line wait
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for price to break these equal highs now
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we need a place to enter there's a
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beautiful Supply zone right here price
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comes up to our area of supply enter
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here set your stop- loss above the area
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of Supply set your take profit at the
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low of the original move and just like
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that we got a beautiful winning short
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trade here's one last example first we
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need to see what trend we're in we're
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making higher highs and higher lows so
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that means we're in a long Trend and we
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only want to look for long trades next
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price does this and consolidates moving
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sideways while doing this consolidation
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price makes these equal lows which is
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absolutely perfect considering we're
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looking for long trades we want our
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liquidity to be towards the down side we
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want price to break this liquidity which
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is exactly what happens then we need a
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place to enter there's a nice area of
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Demand right here this is where we enter
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set her stop loss below the area of
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demand set her take profit at the highs
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we get a beautiful winning trade try
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this strategy out yourself and let me
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know how it works for you by the way I'm
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sharing some private strategies on my
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Instagram where I'll not be sharing on
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YouTube so if you want to check those
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out make sure you follow my Instagram
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thanks for watching and I'll see you
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guys next time
