LIQUIDITY

What is liquidity: People of God liquidity is simple money, so that’s to say liquidity
is everywhere in the market. That’s why when you place a buy or a sell anywhere
in the market you either get a loss or profit immediately. Liquidity lay below old
high and old low.

Old highs and old lows are swing point that are identified by the 3 candle
formation.
3 Candles formation are swing point in the market that gives us a valid high or
low.

E.g 3 Candle formation.

 Types of Liquidity (2)
1. Visible &
2. Invisible Liquidity.

Visible Liquidity: This are liquidity that are visible within our Current State our
normal highs and low. They are structurally incline.

Invisible Liquidity: This are liquidity that are formed or generated based on
timing.
Eg. Session timing, Lunch Time, etc.

Forms of Liquidity
Liquidity are formed in two ways:

1. External Liquidity
2. Internal Liquidity

The logic behind this liquidity forms are that prices move
interchangeable between the both. First takes the external liquidity to
get to the internal liquidity and from the internal liquidity back to take
the external liquidity to either continue in its direction or head to the
opposite external liquidity.
So we know that where price is going to is an external liquidity and
after price has taken it, the journey or moves that price made to break
external liquidity will form internal liquidity in which price will take and
engineer the fuel to target another external liquidity.
The BIG ? is now what will a typical trader like me do?
1. Identify my range
2. Where is my internal Liquidity
3. Expect price to attract to the external liquidity
4. Note it will take out the internal before going to the external
JARA
 Instance when price do not come to our Extreme POI
1. Continuation Set-Up
2. When they have an Initial target which has not been
accomplished yet. That is when price has not met its objective,
either hit an External Liquidity. Etc. It will take the decision POI
and move.

 When price takes out every Internal and external liquidity

and keeps going without respecting any, there are two
reasons:
1. Normal Structure
2. MMBSM