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Liquidity University
Liquidity
In this lesson, we are going to go through Liquidity. This topic is going to be one of, if
not the most important part of this strategy. The forex market is the most liquid market in
the world, with a daily volume of $6.6 trillion. Liquidity is what drives the market. So it’s
an absolute necessity that we understand where large amounts of liquidity is resting in
the market as this is what makes this strategy so powerful and so consistent. Let’s go
through it one by one.
SWING HIGHS & SWING LOWS
This is the second purpose of the 3 Candle Formation, so we had Structure and now we
have Liquidity.
Above every Swing High that has not yet been broken, there will be Buy Side Liquidity
resting above in the form of Buy Stops. Traders will place these Buy Stops above Swing
Highs in the hope that once price breaks above, it will go higher and higher but what will
usually end up happening is the market will reverse after triggering those buy stops,
leaving those traders stuck in drawdown or a hit stop loss.
Below every Swing Low that has not yet been broken, there will be Sell Side Liquidity
resting below in the form of Sell Stops. Traders will place these Sell Stops below Swing
Lows in the hope that once price breaks below, it will go lower and lower but what will
Liquidity University 1
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usually end up happening is the market will reverse after triggering those sell stops,
leaving those traders stuck in drawdown or a hit stop loss.
When price does this, we call it a “Stop Hunt”.
SWING LOW: SELLSIDE LIQUIDITY STOP HUNT
SWING HIGH: BUYSIDE LIQUIDITY STOP HUNT
FULL CHART EXAMPLE
EQUAL HIGHS & EQUAL LOWS

The next form of liquidity we will go through are Equal Highs & Equal Lows. Just like the
Swing Highs and Swing Lows we just went through, traders place Buy Stops above
Equal Highs and Sell Stops below Equal Lows. The reason why so much liquidity builds
up in these areas of Price Action, is because traders see those Equal Highs and Equal
Lows as a form of Support or Resistance, so if price breaks through these areas, they
once again expect the market to keep going up, in the case of price breaking above
Equal Highs or keep going down in the case of price breaking below Equal Lows. Once
again it’s often the contrary that happens.
The other reason there is a lot of liquidity in these areas of Price Action is because
traders will also try to Sell from Equal Highs and Buy from Equal Lows, thinking they are
a strong area of Support & Resistance. So when price breaks through, they are hitting
all the stop losses as well.
Before we show some chart examples, let’s go through a diagram to show what valid
Equal Highs / Equal Lows are and what isn’t valid.
So first we have clean Equal Highs & Lows, next we have what we’d call Relative Equal
Highs & Lows and then lastly an example of what we would not see as valid Equal
Highs & Lows or even Relative Equal Highs and Lows. The reason being is price made
a Stop Hunt, so in some situations we will not expect the market to trade above/below
them, which we will dive deeper into the reasons why as we go through the course. Now
let’s get into some chart examples.
1. EQUAL HIGHS: BUYSIDE LIQUIDITY STOP HUNT
1. EQUAL LOWS: SELLSIDE LIQUIDITY STOP HUNT
1. TREND LINE LIQUIDITY
The next form of liquidity we will go through is Trend Line Liquidity. This is a very
obvious form of liquidity build up for us. It’s very well known from a huge percentage of
traders to try and trade the Trend Line Bounce and Trend Line Break & Retests. You will
see in these next examples how the market manipulates those areas of price action by
triggering all the pending buy stop / sell stop orders, stop losses and just genuinely
causing havoc to those caught unaware of what is actually going on.
TREND LINE: BUYSIDE LIQUIDITY STOP HUNT
As you can see from those examples, there is a lot of manipulation. Anyone who tries to
Buy or Sell the bounce off of the Trend Line gets their stop loss hit. Anyone who tries to
trade the breakout is often only in profit for a very short period of time before the market
completely reverses the direction. That is the power in understanding areas of liquidity
on the chart. It allows us to be participate on the correct side of the market and trade
along side the real move the market is intending to make.
PREVIOUS DAY / WEEK / MONTH HIGHS & LOWS
PREVIOUS DAY LOW: SELLSIDE LIQUIDITY STOP HUNT
PREVIOUS WEEK HIGH: BUYSIDE LIQUIDITY STOP HUNT
PREVIOUS WEEK LOW: SELLSIDE LIQUIDITY STOP HUNT
PREVIOUS MONTH HIGH: BUYSIDE LIQUIDITY STOP HUNT
PREVIOUS MONTH LOW: SELLSIDE LIQUIDITY STOP HUNT
ASIA SESSION LIQUIDITY

The final form of Liquidity we are going to talk about is the Asia Session Liquidity. Above
the Asia Highs and below the Asia Lows rests a lot of liquidity. Since Asia is generally a
consolidation period, more so in non Asia Pairs, there are traders who will attempt to
buy once price breaks out above the Asia Highs and traders who will attempt to sell
once price breaks out below the Asia Lows once again in the form of Buy Stops and Sell
Stops. This is one of the reasons why Asia will become the guide for an Intra-day
Trader, because if we wait for Asia to end, we know that the market likes to stop hunt
those Asia Highs and Lows, so it provides us with context for the coming day.
ASIA HIGHS: BUYSIDE LIQUIDITY STOP HUNT
ASIA LOWS: SELLSIDE LIQUIDITY STOP HUNT
3 Candle Formation
What is a 3 Candle Formation?
A 3 Candle Formation, also known as Swing Highs and Swing Lows, are a very
important piece of Price Action that will be crucial for you to train your eyes to see as
they will tie into future topics. Their purpose is not necessary for you to understand right
now, but being able to identify them will be vital. So let’s get into the key components of
what creates a valid 3 Candle Formation.
KEY COMPONENTS OF A 3 CANDLE FORMATION
So as the name suggests, a 3 Candle Formation requires 3 Candles. Two key things to
remember is that Candle #2 will always be the Highest/Lowest Candle out of the 3, and
the colours of the candles do not matter. All that matters is the formation.
Swing High: For a Swing High you want to see Candle #2 as the Highest Candle of the
3. Swing Low: For a Swing Low you want to see Candle #2 as the Lowest Candle of the
3.
It’s as simple as that. Let’s take a look at a diagram of what that looks like so you
understand what I am describing.
3 CANDLE FORMATION DIAGRAM
As you can see in the diagram, Candle #2 is the Highest Candle of the 3 for a Swing
High and the Lowest Candle of the 3 for a Swing Low.
Now that you have a basic understanding of what they look like, let’s take a look at
some real chart examples!
SWING HIGH: CHART EXAMPLE
SWING LOW: CHART EXAMPLE
What is a trading Range?
A Trading Range is a concept we use to understand where we currently are in the
market and is how we properly view Market Structure. We view Market Structure in
Ranges and you will see at the end of this lesson just how clear Market Structure
becomes.
There is a phenomenon that consistently repeats which we call “The Range Cycle”, this
gives us an edge. If we understand where we are in the cycle, we can approach the
market with a high level of accuracy and understanding of our directional bias.
Understanding the Trading Range is key.
The Trading Range consists of multiple different pieces that will eventually be blended
all together to create it. So we are going to break it down into what I call “The Core
Elements” of a Trading Range.
Bullish & Bearish Qm's
The first Core Element of a Trading Range are the Bullish & Bearish QM’s. The QM’s
are what frame the Trading Range and is how we confirm when a Range is formed.
They are very easy to understand since there are only 2 things that need to happen to
identify them.
To Identify a Bullish QM we need to see a Stop Hunt to the Downside and a BOS to the
Upside. To Identify a Bearish QM we need to see a Stop Hunt to the Upside and a BOS
to the Downside.
Now that you understand how to identify a Bullish & Bearish QM, you will be able to
identify the beginning and end of a Trading Range. In this next section we are going to
go through what those Bullish & Bearish QM’s represent in a Trading Range.
Strong Highs & Weak Lows
At the beginning of a Bearish Trading Range, we are going to see a Strong High,
otherwise known as a Bearish QM. At the end of a Bearish Trading Range, we are
going to see a Weak Low, otherwise known as a Bullish QM. That Weak Low formation
or “Opposite QM” is going to let us know that our Bearish Trading Range has been
confirmed. Let’s see an example of what that looks like.
Strong Lows & Weak Highs
At the beginning of a Bullish Trading Range, we are going to see a Strong Low,
otherwise known as a Bullish QM. At the end of a Bearish Trading Range, we are going
to see a Weak High, otherwise known as a Bullish QM. That Weak High formation or
“Opposite QM” is going to let us know that our Bullish Trading Range has been
confirmed. Let’s see an example of what that looks like.
External Range Liquidity (Bullish)
Now that you understand Strong Lows / Weak Highs you will now be able to understand
what we call External Range Liquidity (ERL) for a Bullish Trading Range. The QM’s that
form the Range are the External Points of our Trading Range, so those become the
External Range Liquidity. In a Bullish Trading Range, we are expecting a new high to be
created, so our target is going to be the Weak High or “External Range Liquidity”. Let’s
take a look at an example.
External Range Liquidity (Bearish)
Now that you understand Strong Highs / Weak Lows you will now be able to understand
what we call External Range Liquidity (ERL) for a Bearish Trading Range. The QM’s
that form the Range are the External Points of our Trading Range, so those become the
External Range Liquidity. In a Bearish Trading Range, we are expecting a new low to be
created, so our target is going to be the Weak Low or “External Range Liquidity”. Let’s
take a look at an example.
Internal Range Liquidity
If we have External Range Liquidity, then surely there’s something called Internal Range
Liquidity (IRL) and you’d be 100% correct. The Internal Range Liquidity are the Swing
Highs & Swing Lows inside of the Trading Range. Above the Swing Highs there are Buy
Stops and below the Swing Lows there are Sell Stops. The Low or High that gets
broken to confirm the Trading Range will also be seen as Internal Range Liquidity. Let’s
take a look at what that looks like on the chart for a Bullish and Bearish Trading Range
Example.
Premium & Discount
Once we have our Trading Range identified, we can now implement what we call the
Premium & Discount. In simple terms, Discount = Cheap and Premium = Expensive. If
we are thinking logically, it’s more reasonable for you to want to buy something at a
cheap price and sell something at an expensive price. The market works the same way.
The only levels you will need is 0, 0.5 and 1. The Settings should look something like
this.
The way we apply the Fibonacci to our Trading Range is by measuring it from the High
and Low of the Range. The 50% is known as “Equilibrium”. Above the 50% are
Premium Prices (Expensive) and Below the 50% is known as Discount Prices (Cheap).
So in a Bearish Trading Range, we only want to sell in Premium Prices. Selling in a
Discount is not high probable. In a Bullish Trading Range, we only want to buy in
Discount Prices. Buying in a Premium is not high probable. Let’s see what that looks like
when the Premium & Discount is applied to our range.
The Range Cycle
We have now covered the Basic Core Elements of a Trading Range. The QM’s, which
represent either a Strong High & Weak Low or a Strong Low & Weak High, the External
Range Liquidity, which are the External Points of the range, especially the Weak High /
Weak Low since those are the targets to create a new High or new Low, Internal Range
Liquidity which are the Highs / Lows inside of the Range and lastly the Premium &
Discount to know which area of the Range we are looking to Buy or Sell from.
I have taught you all of them piece by piece and now it’s time to blend them all together
and take advantage of what we call the Trading Range Cycle. The Trading Range Cycle
is simply the process of price seeking Internal Range Liquidity to then Target External
Range Liquidity and then from External Liquidity back to seeking Internal Range
Liquidity and so on. That’s the cycle.
As you can see after putting all the pieces together, we saw for the Bullish Trading
Range, the market pushed down into a Discounted Price, took out Internal Range
Liquidity, tapped into a HTF POI and then reversed to target the External Range
Liquidity. For the Bearish Trading Range, the market pushed up into a Premium Price,
took out Internal Range Liquidity, tapped into a HTF POI and then reversed to target the
External Range Liquidity. It’s as simple as that. That’s how you Identify a Trading Range
and how you use a Trading Range and it’s cycle to your advantage.
Market Structure Clarity
Now let’s see how clear Market Structure has become now that you understand the
ranges.
Range Examples
Range Traps
Now that you understand how to identify a Trading Range, it’s now time to learn what
the common traps are INSIDE of the Trading Range.
Having the ability to understand these traps and identify them will allow you to anticipate
where the market is likely to draw to and it will teach you how to approach certain
situations.
First , will explain both traps individually, then we will get into some diagrams and finally
a bunch of chart examples.
Range Trap Type 1
To identify Trap Type 1, you want to see a BOS, followed by a Retracement, and then a
BOS once again. That Retracement leg is going to be the Trap. There are 2 variations
of this as the Trap can sometimes form before Price takes out the external and
sometimes it will form after Price takes out external, but the same logic applies. Let’s
take a look at a diagram to show how this looks and then explain why this is such a
deadly trap. I will label the diagrams as Variation 1 & Variation 2 to differentiate the
variations of this Trap.
Variation 1
Variation 2
Range Trap Type 1 Logic
So what makes this a trap? The reason why this is a Trap is that the large majority of
traders are going to try and Buy/Sell from this Price Leg. So there are stop losses, as
well as protective Buy Stops/Sell Stops resting above / below. This is because they are
trading based on Market Structure alone.
In a Bullish Scenario, they see a HH, HL and another HH, so they expect that recent HL
to hold. In a Bearish Scenario, they see a LL, LH and another LL, so they expect that
recent LH to hold. After it fails, their stop losses will be hit and Buy/Sell stops have been
triggered and price will reverse again leaving them in loss.
On top of all of this havoc they now believe since that leg was broken, that the market
has changed trend. Now they will get stopped out once again since they have the wrong
directional bias. As you can probably tell by now from this description, just how deadly
this trap really is.
Range Trap Type 2
To identify Trap Type 2 we have to understand what is known as a “Failure Swing”. A
Failure Swing is when Price fails to create a new Structure High or Low and then breaks
structure in the opposite direction. Nothing is 100% in the market but this is the signal
and we can then anticipate that the market is forming a Failure Swing. This can happen
whether there is Internal Range Liquidity in the Trading Range or not. We will call this
Variation 1.
For Variation 2, this is most likely to occur when there isn’t any Internal Range Liquidity.
The reason being is because Price needs a reason to go somewhere, so if there is no
liquidity, the market has to engineer it. Understanding this will teach you how to
approach a Trading Range when there isn’t any Internal Range Liquidity. This is still
considered to be a Type 2 Trap since the market will create a series of failure swings
before reaching an area of significance such as a HTF POI and finally reverse. Let’s a
take a look at some diagrams.
Variation 1
Variation 2
Range Trap Type 2 Logic
So what makes this a trap? In Variation 1, there are Buy/Sell stop orders above/below
the red annotated Trap. The market then triggers those pending orders and reverses,
leaving those traders in loss. Once that High/Low has been taken out, many traders will
believe the trend is changing since Price created a new HH or new LL, when all it is, is a
stop hunt. So they will attempt to trade in the wrong direction and get stopped out.
For Variation 2, it’s pretty much the same as I explained earlier. Price will engineer
liquidity and that liquidity will have Buy/Sell Stops resting above/below it, this is the area
annotated in red. The market will then tap into that HTF POI and then reverse, leaving
them in loss. Those unaware of where Price is coming from will attempt to continue
trading in the direction it has been creating the liquidity in, and it will take out those
traders stop losses.
So once again they take out both sides of the market before going in their intended
direction
Trap Type 1 Examples
Variation 1
Variation 2
Trap Type 2
Variation 2
Point Of Interest
In this lesson, we are going to cover Point of Interest, or POI for short. A POI is a Price
Level where we can expect the market to give a reaction from, an area where we can
expect a setup to form and can also be where we can potentially execute a trade. The
main issue people have with POI’s is that there can be so many of them visible on the
chart and the majority of people don’t know which POI to choose. That’s why we must
have some rules behind the way we select them, to ensure we give ourselves the
highest odds possible. Let’s go through some of those rules.
POI Rule Set
1. A High Probability POI must be selected from the Higher Timeframes, the HTF is
king and will always be king. This is the main reason why people can’t choose a
POI, because they spend their time looking for it on the Lower Timeframes and end
up having too many options, which is not an ideal method for long term profitability.
2. A High Probability POI must have liquidity resting above it if you are looking to Buy,
and below it if you are looking to sell. This gives the market a REASON to tag into
your POI and it also gives the market a REASON to reverse from your POI.
3. A High Probability POI must be unmitigated.
4. A High Probability POI is the closest POI to the liquidity. In the topic of Liquidity,
you can see how quick they can cause those manipulations, so it’s most likely they
will be very quick to reverse. So if your POI is not the closest one, it’s likely you will
miss the move.
Orderblock
The first type of POI we will go through is the Orderblock. We have the Bullish
Orderblock and the Bearish Orderblock.
A Bullish Orderblock is the last down Candle/Candles before the up move. I say candles
as plural because the same consecutive colour candles are just one solid candle on the
HTF.
A Bearish Orderblock is the last up Candle/Candles before the down move. I say
candles as plural because the same consecutive colour candles are just one solid
candle on the HTF.
For an Orderblock to be valid for us, it MUST take out Liquidity. This gives it purpose.
You can mark out the entire candle if you like, however the majority of the volume is in
the body so for me personally I mark it starting from the body. Just do be aware that
there will be times where it doesn’t tap the body. So it’s personal preference.
Let’s take a look at an example of a Bullish & Bearish Orderblock on the charts!
Breaker Block
The Second type of POI is the Bearish / Bullish Breaker Block. The Breaker Block is
simply an Orderblock that was not respected, so when price breaks through the
Orderblock, the market can return to it on the other side and use it to make its move.
The Breaker will typically be found in a specific area of structure. I will add a diagram
below to show an example.
As you can see the Breaker is usually found when price creates a BOS. Let’s take a
look at a couple of real chart examples now so you have a better idea of what this looks
like.
Imbalance Fill
The third type of POI is the Imbalance Fill. First let’s go over what an imbalance is.
When price has not been delivered fairly between buyers and sellers, the market will
become one sided which ends up leaving an imbalance in price. The way we can
identify an Imbalance is the gap in the middle of 3 Candles. So between Candle 1 and 3
there will be a gap where the Candle #1 and Candle #3 do not touch. If they touch then
there is no imbalance. Let’s look at a quick diagram so you can see what I am
describing.
The example to the right is not an imbalance. As you can see there is no gap between
the 1st and 3rd candles. The price was fairly delivered.
The example to the right is not an imbalance. As you can see there is no gap between
the 1st and 3rd candles. The price was fairly delivered.
Now that you understand the Imbalance, you can now understand what I mean by an
Imbalance Fill. To put it simply, an Imbalance Fill is when the market returns to an
Imbalance and completely fills the gap. So in a Bearish example, the imbalance would
be considered filled once Price taps the Low of Candle #1. Vice versa for a Bullish
Imbalance, the imbalance would be considered filled once Price taps the High of Candle
#1. So Candle #1 would be the Candle we use as a POI. Now let’s see some chart
examples.
Hidden Base
The fourth type of POI is the Hidden Base. Understanding the Hidden Base gives you
the ability to see where an Orderblock is on the LTF while viewing the chart on a HTF.
Hence the word “Hidden”. The Hidden Base can also be seen as a refined version of
the Imbalance Fill. Let’s take a quick look at a diagram so you can understand what to
look for and then we’ll get into a couple chart examples!
Unmitigated Wick
The fifth and final POI is the Unmitigated Wick. The explanation for this POI is pretty
straight forward. It is a Wick that has not yet been tapped into yet. One key point to
remember about the Unmitigated Wick is that price can use the Open and the 50% of
the Wick. So if price has tapped into the open, the 50% can still be used. Let’s jump
straight into the chart examples as this POI is quite simple.
Sessions & Market Behavior
In this topic we are going to go through the importance of Time when it comes to trading
the Forex Markets and the typical behavior you will see. There are 4 Main Sessions
during the day that we are going to take note of. The reason why we use these specific
windows of time during the day is because these times will offer Volatility & High
Probability trade setups. The whole point as a Trader is to give yourself the highest
odds of success.
These times are as follows:
ASIA SESSION :
17:00pm – 00:00am NY TIME
LONDON SESSION :
1am – 5am NY TIME
NEW YORK SESSION :
7am – 10am NY TIME
LONDON CLOSE SESSION :
10am – 12pm NY TIME
ASIA SESSION
Unless you are Trading Asia Pairs, the main purpose of the Asia Session is to build
context for the day. There is nothing inherently wrong with Trading the Asia Session with
a non Asian Pair, but the probabilities and volatility are going to be much higher in
London / New York Session. So for us, the most logical decision will be to wait until Asia
Session ends to build up context. That will be our main reason for marking up the Asia
Session. This session is also known as the GUIDE for an Intra-Day Trader. So it is
going to be of great use to us.
The way we mark the Asia Session on the charts if you aren’t using an indicator, is by
going to a clear timeframe like the 15 minute and drawing a rectangle around the
candles that were printed between 17:00pm & 00:00am NY Time. Also making sure you
mark it from the highest point and the lowest point including the wick.
LONDON SESSION
London Session is going to be one of the main sessions you are going to look for Trade
Setups within. This time of day offers High Probability setups and High Volatility.
Key Points about the London Session:
If the market is Bullish, London Session has the highest probability of creating the Low
of The Day. This is not going to be 100% as nothing is with the market, but there is a
high chance of this occurring.
If the market is Bearish, London Session has the highest probability of creating the High
of The Day. This is not going to be 100% as nothing is with the market, but there is a
high chance of this occurring.
Therefore, London Session has a high chance of opening with a fake move /
manipulation before the real move takes place.
NEW YORK SESSION
New York Session is going to be the next on our list that we are going to use to look for
High Probability Setups. This particular Session is usually going to be the easiest time
to look for Quality setups due to already having that data available from the previous 2
sessions. So you are giving yourself the most amount of information possible.
Key Points about the New York Session:
New York Session will often offer a continuation of London’s move but can also offer a
reversal if price has reached an area of significance. This information will become very
useful as you accumulate the knowledge from this course.
New York Session frequently involves High Impact News, so be sure to check the
Economic Calendar so you aren’t caught off guard by potential extreme volatility.
LONDON CLOSE SESSION

London Close is not typically a Session we are going to look to participate in, it can and
does offer nice setups in the right situations, however the volatility is drying up around
this time so the move will be short lived generally. This Session is still going to very
good in terms of understanding how price behaves during each time of the day.
Key Points about the London Close Session
As I said before regarding London Session having the highest chance of creating the
High of The Day if Bearish and the Low of the Day if Bullish... London Close will have
the highest chance of creating the Low of The Day if Bearish and the High of the Day if
Bullish. In other words, we will usually see a retracement during this Session after New
York has made its move. This is useful information as we will know when price is likely
to exhaust itself and with the combination of the London Session and London Close
Session, we can become quite accurate with some practice, of knowing where and
when price will form both the High and the Low of the day.
2. This will obviously not happen every single time like with everything but it’s definitely
something to keep in mind if you are watching the charts during this time.
CHART EXAMPLE (BEARISH)
CHART EXAMPLE (BULLISH)
Order Flow
Order Flow is a series of Mitigation. Mitigation is what occurs when the market creates a
POI, pushes away and then returns to it before reversing once again. If our entry is in
line with the Order flow, our accuracy will be much higher. This is why when I mentioned
in the topic of POI’s, it’s ideal to be unmitigated. Let’s take a look at a diagram and
some basic chart examples to show you what this looks like, then we will get into
understanding how following Order flow can assist us with POI selection in the Trading
Ranges.
Order Flow Diagram
Order Flow Chart Example
Now that we’ve seen some very basic examples from both a Diagram and a Chart, let’s
now dive into how we can implement this in our Trading Ranges to assist us with
choosing a POI. Remember though that we cannot use Order flow purely on its own,
this is just one of the many pieces to this overall Strategy. We must combine everything
together and we will show you exactly how that is done by the end of this course.
ORDER FLOW: EXAMPLE #1
Fractal Nature Of The Market
We are about to start digging deeper into the true potential of this Strategy, but in order
to progress with that, we need to understand that the Market is Fractal.
What does fractal mean?
Fractal can be thought of as never-ending patterns. When viewing the market, we are
able to view it through many different timeframes. 5 second timeframes all the way up to
Yearly Timeframes.
One thing you may have heard before is “Lower Timeframes are just noise”. This is
completely wrong and misunderstood. What we must understand is that the market
works the same exact way whether we are viewing it from the lowest timeframe possible
or the highest timeframe possible. So therefore we must treat every timeframe the same
way, but knowing which timeframes to use and when, is key. The market is driven by
algorithms, and it cannot be ran differently on each separate timeframe. it does not work
like that. Everything in the market is Fractal.
Structure is fractal, QM’s are fractal, POI’s are fractal, Liquidity is fractal, Trading
Ranges are fractal, Order flow is fractal. EVERYTHING is fractal.
3 CANDLE FORMATION
You might be wondering... why are we going over the 3 Candle Formation yet again,
surely there’s not much else to it, but you’re about to see just how important this one
basic topic really is. It’s now time to understand what exactly a 3 Candle Formation is,
now that we have reached the topic of the Fractal Nature.
A 3 Candle Formation is actually a QM when broken down onto a lower timeframe. This
is why the 3 Candle Formations work as Swing Points and Structure! A Swing Low is a
Bullish QM when viewed on a Lower Timeframe and a Swing High is a Bearish QM
when viewed on a Lower timeframe. This also works the opposite way, if you see a QM
then it means it’s a 3 Candle Formation on a Higher Timeframe.
**FRACTAL NATURE OF A SWING LOW**
**FRACTAL NATURE OF A SWING HIGH**
Revelation
So why is this so important to know about the 3 Candle Formations? let’s connect the
dots here.
3 Candle Formations = Swing Points / Structure, Liquidity & QM’s.
All of that blended together, forms a Trading Range. That means Trading Ranges are
fractal. And if we use POI’s and Order flow in combination with Trading Ranges, then
that means they are fractal too. The idea when creating this course was to build it like a
house. One brick at a time until the house is complete and to make it so everything ties
together like the cement that holds it all in place. Every single thing we have talked
about is fractal and never ending. No matter the timeframe, you will see everything that
has been taught so far. The 3 Candle Formation is such a simple concept, but now you
can see just how deep that one little candle formation goes.
Understanding this means we are able to take this strategy to the next level.
The Bigger Picture

When viewing the market we can do so through many different timeframes and since
the market is fractal, all timeframes work the same way. However, we still need to
understand where we are in the overall picture of the market... This is where Higher
Timeframes come into play.
If you’re viewing the market on one single timeframe without seeing a bigger
perspective, you are 100% going to get caught off guard from random reversals. The
15min Timeframe may be bullish but the 4HR may be bearish, so once price turns
around to continue that Bearish trend on the 4HR, you will have no idea why you get got
stopped out or why the market completely reversed on you out of nowhere.
This is why you need to know WHERE we currently are in the bigger picture before you
make any sort of trade decisions. Understanding this will help you immensely with the
accuracy of your directional bias.
**15 MINUTE TIMEFRAME**
** 4 HOUR TIMEFRAME**
As you can see, not only did we display the Fractal Nature in those 2 Previous Slides by
showing you the exact same concepts being used on both the 15min and the 4HR, you
also saw the importance of checking the HTF for the bigger picture. If you only stuck
with that 15min timeframe, your stop loss will get hit once the 4HR Range has been
fulfilled and has reversed to continue the bearish move. That’s an unnecessary loss that
you should not have to weather if you knew where Price was in the bigger picture, and
because in this example we didn’t check, we had no idea why the market decided to just
drop and take out the 15min Strong Lows all of a sudden. The Higher Timeframe is
King.
Now let’s go through the main timeframes we are going to focus on when making our
analysis
TIMEFRAMES
The main timeframes we are going to pay attention to are as follows:
Monthly, Weekly, Daily, 4HR, 1HR, 30min, 15min, 5min, 1min.
However, this does not mean you should restrict yourself to only these timeframes.
There will be situations where the market is just not clear when viewing a standard
timeframe, so you will have to switch between some of the less commonly used
timeframes to see something a bit clearer.
We will dive deeper into how we use all these timeframes when doing a complete top-
down analysis once we put everything together.
Hedging
In this lesson we are going to go over Hedging, otherwise known as “Ping Pong”. This is
where you will learn how to execute positions on both sides of the market. Up and
down. Doing this, combined with stacking obviously is extremely lucrative but we must
know what we’re doing. So let’s go through how this is done.
OBSTACLES
To effectively be able to Hedge or “Ping Pong” we have to understand our obstacles.
Very simply put, obstacles are road blocks, something in the way. Price isn’t just going
to launch or collapse without ever stopping. There is going to be pullbacks. As you saw
in the Stacking lesson, the pullbacks are the reason why we’re able to continue adding
positions and the obstacles cause these pullbacks. Now that you understand where the
pullbacks come from, you can have a better understanding of where the opposite QM
will form to complete your Trading Range, because every external range is liquidity
potentially feeding into an Obstacle.
So what are the Obstacles? They are Unmitigated QM’s / POI’s.
BULLISH RANGE + OBSTACLES
BEARISH RANGE + OBSTACLES
As you can see from these diagrams, it’s when price runs into these obstacles that the
Hedge opportunity is presented. In the Bullish Scenario you can Buy from the Strong
Low, Sell from the Obstacle, Buy again from the newly formed Range as a “Stack” and
so on. In the Bearish Scenario you can Sell from the Strong High, Buy from the
Obstacle and then Sell again from the newly formed Range as a “Stack”. This is how
you Hedge / Ping Pong. The same rules still apply, there must be liquidity feeding into
the POI in order to be valid.
HEDGING EXAMPLE #1
HEDGING EXAMPLE #2
HEDGING EXAMPLE #3
HEDGING EXAMPLE #4
HEDGING EXAMPLE #5
HEDGING EXAMPLE #6
HEDGING EXAMPLE #7
HEDGING EXAMPLE #8
HEDGING EXAMPLE #9
HEDGING EXAMPLE #10
Stacking
Now that we have covered the Fractal Nature of the market, we can now jump into one
of the most lucrative methods of trading, known as stacking or “scale ins”. This is where
we take advantage of all the continuations inside of the Trading Range, until the
External Liquidity has been taken out. The Internal Structure or “Internal Range
Liquidity” we spoke about, are simply Trading Ranges that are on a LTF. We just need
to use the same exact logic, but on a LTF, and if you have the correct price leg, every
strong low / strong high should hold until the HTF Target has been met. Let’s see a
quick diagram of what I mean and then we can get right into the chart examples since
we are using information we have already taught. We are just using it on lower
timeframes to take advantage of the fractal nature.
BULLISH STACK DIAGRAM
BEARISH STACK DIAGRAM
Now that you have seen a couple of diagrams, let’s get into some chart examples.
STACK EXAMPLE #1
STACK EXAMPLE #2
STACK EXAMPLE #3
STACK EXAMPLE #4
STACK EXAMPLE #5
STACK EXAMPLE #6
Entry Methods
1. There are 3 entry methods we can use to execute a position into the market, let’s go
through what they are.
Confirmation Entry: The first Entry method we will talk about is the Confirmation
entry. This is where we mark up our POI and then we wait for price to tap into it and
form a QM / LTF Range to confirm that the market has a high probable chance to
reverse from that Point of Interest. Simply just using the fractal nature of the market
just like you would do when Stacking.
PA Entry: The second Entry method we will talk about is the PA Entry. Similar to the
confirmation entry, we will wait for price to tap into our POI, but instead of waiting for
that QM / LTF Range, we wait for an Engulfing candle formation. If you don’t know
what that is, not to worry as I will explain that too!
Direct Entry: The final Entry method we will talk about is the Direct Entry. Like the
name suggests, this is a direct entry, you don’t wait for a confirmation or a PA entry,
however we will talk about how we can refine the HTF POI to get a more precise
entry, bigger RR / smaller SL
COMMON SENSE
I want to quickly discuss these entry methods and some common sense we need to
have when trying to execute any of them. For a confirmation entry / PA entry I know
there will likely be questions of what timeframe to look for them. The answer is,
depending on the size of the POI, the answer can differ. For example, if we had a big
Daily Timeframe POI, then obviously looking for that Confirmation entry / PA entry on
the 1min or seconds timeframe isn’t going to be very high probable as we’d need to see
something more significant.
In the end, experience will tell you what you want to see. This is why we must collect
data so we can build trust and know what is likely to work and what isn’t. Same with
Direct
entries, if there’s no obvious refinement to get a smaller SL, then the most common
sense thing to do is wait for a Confirmation entry / PA entry to occur and then react.
CONFIRMATION ENTRY
PA ENTRY
DIRECT ENTRY + REFINEMENT
Before we get into a diagram, I will give a brief explanation of how we go about refining
our POI’s to have a precision entry. To do this we need to mark up our HTF POI. The
opening of this HTF POI is what we call a “Key Level”. Why is this important? It’s
important because we are going to choose the POI on the LTF that is LINING UP with
that Key Level. Now let’s take a look at some diagrams now to see what this looks like.
DIRECT ENTRY + REFINEMENT
It won’t always be an Unmitigated Wick, it can be anything, but that is the basic idea of
how we refine our POI for a direct entry. Something that lines up with the Key Level, be
it a UW, OB, BB, IMB Fill or HB.
CONFIRMATION ENTRY EXAMPLE #1


PA ENTRY EXAMPLE #1

PA ENTRY EXAMPLE #2

PA ENTRY EXAMPLE #3

PA ENTRY EXAMPLE #4

PA ENTRY EXAMPLE #5

DIRECT ENTRY/REFINEMENT EXAMPLE #1





Unity
We have finally reached the last topic. It’s time to put everything together. In this lesson
I will be showing you how to do a complete Top Down Analysis, which is the process of
analysing a chart from the HTF’s all the way to the LTF’s and then after that I am going
to show you the analytical step by step process of using the Trading Ranges, by using
everything we have discussed in this course.
Let’s Begin.
TOP DOWN ANALYSIS
When doing a Top Down Analysis, we will begin from the Monthly and work down to the
Weekly, Daily, 4HR, 1HR, 15min and finally the 5min and 1min. Timeframes can vary

depending on the clarity, but I will be showing you a complete Top Down Analysis for
GBPUSD.
MONTHLY
Currently, on this monthly timeframe, we are bearish.
We have identified our monthly trading range and at this point in time , price has taken
out internal range liquidity and tapped into a breaker block .
We can expect reactions from this breaker. Remember that price is fractal . This could
just be a small reaction on the monthly timeframe , but on our intra-day timeframes this
could mean months of bearish moment even if it decides to eventually turn around.

WEEKLY
On the weekly timeframe , price has created a bearish QM / Strong High after tapping
into the monthly breaker. This means we now have a bearish intent on the weekly
timeframe.

DAILY
On the daily timeframe we have established our trading range , as you can see defined
by the strong high and weak low.
Price took out the equal highs and has tapped into an unmitigated wick . This has
caused price to drop for the past 2 days .
Currently though , price is reacting from a breaker block. A HTF POI. This means we
could see potential buys on our intraday timeframes , because remember this is a daily
timeframe. A small reaction on a HTF is very pronounced reaction on the LTF and we
can capitalise off of those moves .
This also provides context to those moves because we have a reason to expect higher
prices.

4HR
On the 4HR timeframe we can see our Trading Range. Keeping in mind the strong low
is for this current 4HR Trading Range . In the bigger picture , on the Daily timeframe , its
a weak low.
We can not guarantee price is going to sell right away from the daily UW. It still has
potential to fulfill this 4HR Range and do whatever it likes in this daily range before

finally potentially selling off. So all we know at this point is price is inside of a daily
breaker block and can potentially give us a move to the upside .
That is all we care about right now . We are not concerned about what we think , we
just REACT to what IS and what we SEE.
30 Minute
There was nothing obvious on the 1HR timeframe so we move to the 30min . On the
30min timeframe we can see the current Trading Range annotated by the purple points .
Since we are expecting buys from a the daily POI there is a good chance the high of
this 30min range will get taken , however we can not ignore the obstacle ( 50% of the
1HR UW ) and as we see the Asia Range is completed .

So what is resting below the obstacle ? Asia Highs / Equal Highs . So we can expect
some sells . Where will we expect to see price sell towards ? The trend line liquidity
resting right above the 30min / 1HR POI , which is where we will expect buys to
continue from the Daily POI.
1 Minute

We are now on the 1min timeframe , currently inside of that obstacle . I personally do
not like entering directly so i will wait for confirmation. We now have our confirmation
formed on the 1min . We have our new trading range formed, outlined by the strong
high and weak low . We also have a beautifully trend line liquidity formed.
So now lets go the HTF and see if we can find a POI above this liquidity to take a sell
and target the internal range liquidity mentioned on 30min.

HTF POI SELECTION
The clearest POI i could find was on the 4 minute timeframe. We have an OB resting
above the liquidity and this is also the candle that took out liquidity, so it has a purpose.
If you want to be safe , put your SL above the strong high , if you have a higher risk
tolerance you can just use the body of the candle since that is where the volume is, with
a SL above , minimum 2 pips.

COMPLETED SETUP
Here is our sell setup:
SL: 2.5 pips

RR: 1:26
We can target the weak low for partials + BE and let the rest run to the HTF internal
range liquidity targets .
This setup is occurring during the London window.

SETUP RESULT

5 MINUTE
On the 5min timeframe, we have a BOS to the upside after tapping into our 1HR /
30MIN POI.
As you can see i have marked the current bigger range with red dots. It is possible that
price can just run through it because of where is coming from , but theres always that
chance it respects that range , takes the low and then buys again since this is just an
internal BOS.
We have to understand that price can do whatever it wants inside the POI, it dose NOT
have to move straight away . So it may be a good idea to take some partials along the
way just incase it decides to respect that range and take the low.
Lest jump to a HTF now and look for a POI below the liquidity.

HTF POI SELECTION
We have very clear unmitigated wick on the 10min timefame right below the liquidity ,
this will be the POI for our setup.

COMPLETED SETUP
So here is the setup , we will target the 4HR weak high but take partials at the LTF weak
high since price can still continue down from the bigger range its playing within, marked
with the red dots.
We can also see orderflow present which gives our POI even more reason to play out.
I have marked out the obstacle because we should never ignore them and we will see
how this plays out . The most important thing to remember as a trader is managing the
risk and the trade professionally and expect the unexpected.
SL: 4.2 Pips

RR : 1: 17
This setup is occurring during the NY window .

SETUP RESULT
So we did get a nice move from our setup but it did end up respecting that larger range
and taking the low out. However , we managed it professionally and took partials with
no loss taken.
I am showing this to you all as if this were a live market and how you should be thinking
, not everything is going to go according to plan and you have to be able to know how to
deal with that.
Nevertheless , our POI on the 4HR / 30MIN is still valid so lets see if we get another
setup to potentially take this to the 4HR weak high.

1 MINUTE
So now we have a proper BOS to the upside , we can see our trading range annotated
by the purple dots and we also see some equal lows being formed .
This is an interesting example , because you can see the big imbalances in the middle
of this range and there is liquidity resting right above that which is also above a discount
price .
If we are thinking logically , the market is driven by liquidity , so they can take out the
liquidity before reaching premium / discount price and just move away . Especially when
there are larger imbalances like this because price has no reason to fill those at the
moment.
Lets take a look on a HTF now for a POI below the liquidity.

HTF POI SELECTION
On the 15min timeframe we can see a very clear OB , which is the candle that took out
liquidity. The one with a purpose. That OB is our entire POI, but remember what we
spoke about in regards to refinement. What is inline with that key level ? A breaker
block . So we can refine our POI to that breaker.

COMPLETED SETUP

So here we have our setup.
SL: 6 Pips
RR: 1:23
In this setup we have 3 targets

First we have the weak high of this current LTF range
We then have the weak high of the range we marked our 1HR / 30MIN POI within
And then finally we have the weak high of the major 4HR ranges because remember
that right now we are coming from a daily breaker block.
TARGET #1

TARGET #2

TARGET #3
That concludes the Top Down Analysis! We went from the Monthly Timeframe all the
way down to the 1min Timeframe and we used the same exact concepts the whole way
through, nothing changes. We just follow the narrative. Now I will show some examples
of the process we use to approach and take advantage of the Trading Ranges with
multi-timeframe analysis!
Once we confirm our Range there are 3 main things we need to do in order to capitalize
off of it.
We need to see Liquidity / Inducement. Once we have this, we can see what POI on the
HTF this liquidity is feeding into.
The POI, we ALWAYS want to choose our POI based on a HTF, otherwise you can have
way too many options and most likely will be incorrect.
Refinement or Entry Confirmation as this is what will really help you capitalize off of the
range.
After that, you just need to understand your targets which will always be the Weak High/
Weak Low if Pro-trend or Internal Range Liquidity if counter trend, and making sure your

risk management is in check.
SETUP #1
CURRENT TRADING RANGE: 15 MINUTE
POI SELECTION: 4HR

POI REFINEMENT: 15 MINUTE

COMPLETED SETUP

SETUP RESULT

SETUP #2

POI SELECTION: 5 MINUTE


COMPLETED SETUP

SETUP RESULT

SETUP #3

POI SELECTION: 4HR



COMPLETED SETUP
SETUP RESULT

SETUP #4

POI SELECTION: 4HR


COMPLETED SETUP

SETUP RESULT
SETUP #5

POI SELECTION: DAILY


COMPLETED SETUP

SETUP RESULT

This is how we combine everything we have learned all together. This is how you can
apply it to your Trading Ranges and how to do a proper Top Down Analysis, which is a
CRUCIAL step because without the knowledge of the HTF, we’re very vulnerable to
trading in the wrong direction, incorrect ranges, everything.
There are obviously different ways you can go about your Trading Range process, you
can look for a HTF POI right away and see if there is Liquidity feeding into it especially if
there is no liquidity and then follow the same process. Everyone will have their own
unique approach. You don’t need to refine your entry if that’s not your style, you can
always wait for a confirmation setup! You approach your confirmation setup the very
same way, it’s just a Range on a LTF. After that it’s completely up to you how you want
to approach it after your entry, you can either just leave it as a single entry or you can
attempt to stack, hedge etc. It’s all in the palm of your hands now.
We have now covered: Sessions & Market Behaviour, 3 Candle Formation, Liquidity,
Range Cycle, Range Traps, POI’s, Order flow, Fractal Nature, Stacking, Hedging, Entry

Types and finally “Unity” putting it all together.
This may be the final topic, but it’s definitely not the end of the education.

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SWING HIGH: BUYSIDE LIQUIDITY STOP HUNT

FULL CHART EXAMPLE

EQUAL HIGHS & EQUAL LOWS

1. EQUAL HIGHS: BUYSIDE LIQUIDITY STOP HUNT

1. EQUAL LOWS: SELLSIDE LIQUIDITY STOP HUNT

1. TREND LINE LIQUIDITY

TREND LINE: BUYSIDE LIQUIDITY STOP HUNT

PREVIOUS DAY / WEEK / MONTH HIGHS & LOWS

PREVIOUS DAY LOW: SELLSIDE LIQUIDITY STOP HUNT

PREVIOUS WEEK HIGH: BUYSIDE LIQUIDITY STOP HUNT

PREVIOUS MONTH HIGH: BUYSIDE LIQUIDITY STOP HUNT

ASIA SESSION LIQUIDITY

ASIA HIGHS: BUYSIDE LIQUIDITY STOP HUNT

ASIA LOWS: SELLSIDE LIQUIDITY STOP HUNT

3. A High Probability POI must be unmitigated.

LONDON CLOSE SESSION

CHART EXAMPLE (BEARISH)

Order Flow Diagram

ORDER FLOW: EXAMPLE #2

ORDER FLOW: EXAMPLE #3

ORDER FLOW: EXAMPLE #5

ORDER FLOW: EXAMPLE #7

ORDER FLOW: EXAMPLE #9

The Bigger Picture

HEDGING EXAMPLE #10

BEARISH STACK DIAGRAM

Liquidity University 102

Liquidity University 105

Liquidity University 108

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Liquidity University 114

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Liquidity University 138

Liquidity University 142

Currently, on this monthly timeframe, we are bearish.

Liquidity University 143

Liquidity University 144

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Liquidity University 147

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Liquidity University 151

Here is our sell setup:

SL: 2.5 pips

This setup is occurring during the London window.

Liquidity University 153

Liquidity University 154

Liquidity University 155

Liquidity University 156

SL: 4.2 Pips

This setup is occurring during the NY window .

Liquidity University 157

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Liquidity University 160

Liquidity University 161