Advanced Smart Money Concepts 25 min read Lesson 63 of 311

Liquidity Concepts Deep Dive

Understand where and why smart money trades

Liquidity Concepts Deep Dive - Annotated chart illustration

Liquidity Concepts Deep Dive

Liquidity is the fuel that moves markets.

Types of Liquidity

Buy-Side Liquidity

Sell-Side Liquidity

Liquidity Pools

Equal Highs

Equal Lows

PDH/PDL

Trading Liquidity Sweeps

The Setup

  1. Clear liquidity pool
  2. Price approaches
  3. Quick spike through (sweep)
  4. Immediate reversal
  5. Entry on confirmation

Entry Rules

Key Rules

  1. Price seeks liquidity
  2. Trade AFTER liquidity taken
  3. Obvious levels get swept
  4. Opposite liquidity = target

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