This is Everything YOU Need To Know About LIQUIDITY

What's going on guys? Welcome back to a

brand new Inter Equity Trading video.

Today is going to be a very very

important video. I'm going to be

breaking down everything to do with

liquidity. Who is getting induced, where

the liquidity is, who's going to be

getting trapped next, and of course one

very very important rule everyone needs

to know. Sit back, enjoy, drop a like on

this video if you want to see more

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course comment down below. We read all

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us in the future. Enjoy.

All right. So, you guys hear me talk a

lot about inducements. Who's getting

induced? Now, what does that exactly

mean when I say who is induced? When I

say this, when I use this word

inducement, you have to understand what

it means. Who is induced? Now, when the

market has all of these different types

of moves that occur, whether we're

trading to the upside or we're trading

to the downside, you have to understand

that every single time the market has a

move up or the market has a move down,

it is an inducing traders a specific

way. So, an example would be if we are

trending to the upside, every single

time we make a new high, right? This

this bullish leg here from circle to

circle, we are inducing buyers after

taking out previous highs. Watch what it

does again. Sell off, we go bullish

again. The intention behind this move,

you have to think about this from a

psychology perspective almost, okay? Not

from a pattern, but from a psychology

perspective. Big move to the upside

trading above old highs, the market sees

that as momentum, okay? So, it induces

buyers to get into the market again. And

the market goes down again. Again, low

to high, taking out new highs, we now

induce buyers. Once the market induces

enough buyers in one direction, that's

typically when you'll see

that occur. And that's the that's the

moves we're typically catching. On the

flip side, we have the market trending

to the downside, right? So, if I just

leave this drawing on, we've taken out

previous lows, low to high.

Again,

who is induced? Sellers are induced. And

now we're going to plot some annotations

on to make your guys' life a little bit

easier here. We have a BOS to the

downside. So, low to high Sorry, high to

low, we induce sellers into the market.

So, now typically, if there's a

pullback, these are regions sellers are

looking to enter the market, okay? And

this is very important. You want to

understand, you want to

have a good idea of who is trying to get

into the market. So, this is an example

of sellers being induced in the market,

and of course, the previous one would be

buyers being induced into the market.

It's not just that easy, okay? We all

know that. If everything was just ABCD,

we'd all be millionaires by now, right?

So, things get complicated sometimes,

and I'm going to give you guys some good

examples. What typically happens

sometimes is let's say the market,

again, trends to the upside. We take out

old highs, and we're printing new highs.

We understand,

after what we just went through, buyers

have been induced, right? So, if the

market

pulls back into this region down here,

we don't want to be buying in here,

okay? Very important. We do not want to

be buying. But typically, what can

happen sometimes is the market can

respect it and go long. Now, just

because we have respected this low here

and gone long does not mean we

immediately have to look for sells back

down. No. What you need to understand is

buyers have been induced.

Now, they have entered the market. It

pushes in their intended direction, and

we we now have left liquidity for later

on. Very, very important. So, again,

buyers induced here.

We get a pullback into their area. This

is where retail want to be longing. It

goes long in their intended direction.

Now, there is liquidity left for the

future. And if I just draw this out on

the flip side, just like we talked about

in the in the past, this would be that

BOS for retail. They want to be selling

on the pullback. They enter positions

here, and look, it goes in their

intended direction. Now, we understand

this is going to be future liquidity

that we can target, whether we're going

to be buying into it or, very important,

selling out of it. So, in this example,

we could typically sell into it or if

the market is still bullish, we would

buy out of it. In this example, we could

buy into it. However, if the market's

still bearish, we could sell out of it.

Very, very important. Moving on to the

next topic, which is going to be kind of

relative to what we talked about, but

still very important. That is going to

be

structure liquidity. So, going back to

what we just spoke about, who is

inducing the market, if I draw

price like this, simple, highs, lows,

highs, lows. From a structure

perspective, this is where the liquidity

is going to be, and that lines up

perfectly what with what we were just

talking about. Structure traders would

be buying down here. They would have

liquidity left at the lows down here,

and of course, on the flip side, this is

now known as our structure liquidity,

right? We all understand, very similar

to what we were talking about. So, now

we understand who is induced. Now, we

understand where the liquidity is. Okay,

so to simplify this as much as possible,

and I'm going to title this here,

liquidity. If you guys come from a

retail perspective, this will be very

familiar to, but above

liquidity above lower highs. So, this

would be your lower high, lower high,

liquidity above. And on the left side,

we have liquidity below higher lows. Cuz

again,

when there's a trending market, you guys

can call it. I don't look at the market

from that perspective, but from a

trending market, you have your high,

higher low, high, higher low, right? So,

there's going to be liquidity below the

higher lows. So, that's why we call it

structure liquidity. And on the flip

side, lower high, low, lower high, and a

new low, there's going to be liquidity

above your lower highs. Every single

time the market takes out new lows, just

to summarize this, we have induced

sellers. On the flip side, we take out a

high, we have induced buyers. Take out a

high, we have induced buyers, leaving

liquidity to the downside, identifying

it as structure liquidity. So, now we're

piecing everything together. I'm

actually going to leave these two

drawings on right now, and we're going

to talk more about this. How do we take

advantage of this, and how do we trade

this? So, with the understanding Okay,

so with the understanding of we knowing

now that price has left liquidity above

this high, and price has left liquidity

below this low. How do we take

advantage? Right? That's what everybody

wants to know. How can we take our

trades based off this knowledge in front

of us right now? If we can talk about

the left side first. What everybody

seems to make the mistake of doing is

not waiting for that false move to

occur. That's what I like to call it,

that false move. If we don't have that

false move, that trap move, then we

don't have a trade. So, look at this.

Price has left liquidity at the lows,

otherwise known as structure liquidity.

Now, we have to wait for, and sometimes

this can happen Again, look, we left

more liquidity at the lows. We need to

wait for this. And that's what leads me

to that very, very important rule we've

discussed in the intro that everybody

should have in their plan. And that is

going to be we must only trade once the

early traders are trapped. Now, let's

talk about this once some more. We must

only trade once the early traders are

trapped. Now, what are the early

traders? In this example in front of us

right now, let's talk about this. Who

are the early traders? The structure

traders here, right? The people that

have entered positions here, the people

that have entered positions here. Those

are going to be your early traders. On

the bearish example, sellers stepped in

the market here, maybe the market pulled

back once more just like in the other

example and sold off again. Where are

your early traders going to be? Right

here.

In order for us to take a trade, what do

we need to see? We need to see them get

trapped. So, I hope you guys are

starting to make sense of all this.

Again, early traders are in the market

here. Early traders are in the market

here. We need to wait for them, again,

to get trapped. So, what does that look

like on the sell example? The market

goes bullish, traps the sellers out, and

then take advantage of this move right

here. So, if the market is still

bearish, and this is very important,

right? So, I'm going to write this here,

bearish market. We can be taking the

sells above the highs, okay? As long as

the market is bearish, of course. So,

what does that mean? If we still have

liquidity to the downside here, okay?

I'm going to draw that line and we're

going to mark this on as liquidity. So,

we still have, again, liquidity to the

downside. So, this is a bearish market.

You want to be taking that sell above

the highs once the sellers are trapped.

Now, if we talk about this on the

bullish example, if we are still in a

bullish market here, we have liquidity

to the upside, basically with this line

we have at the highs here. So, again,

liquidity to the upside. We can be

taking longs below these lows and,

again, targeting that liquidity to the

upside. So, it's very important to

understand that this false move, we need

to wait for this false move to occur.

So, I'm going to circle it here from the

high

to low.

And on the sell side, you need to wait

for this low

to print this high here. And again,

that's when we are looking for the

sells. Once the early traders, and

that's a rule. I need everybody, if you

trade how I trade, you need to write

this rule down. We must only trade once

the early traders are trapped. No if,

ands, or buts. All right, here in front

of us I have a piece of price action.

The pair, it's irrelevant, but I'm going

to be talking about everything we just

spoke about in the diagrams, okay? So,

understanding structure, liquidity, who

is induced, all of these good things.

So, with this chart we have in front of

us right now, if we can just backtrack,

follow my cursor, look how all of these

lows being respected here. This market

this low respecting lows to the

left-hand side all the way up until

which point? This point here. So, if I

can circle this, actually know what? I'm

going to put an arrow to this piece of

price action right here. That piece of

price action is simply just this,

leaving liquidity to the downside. Okay,

so you simply want to mark on this low.

Now, this is where again everybody

screws up. You want to wait for these

lows to go. Okay, cuz look, after we

take out this high, we understand buyers

have been induced. This is a level of

structure liquidity. Look at the market

does. Once respects it and then goes

long leaving even more liquidity to the

downside. So, this whole price action,

look how inconsistent. This is very

important, guys. Look how inconsistent,

look how rangy it is. This is

accumulating liquidity. If we understand

where the liquidity is, aka the

structure liquidity right here, we want

to wait for these lows to get taken out.

Okay, cuz once they get taken out, the

early traders, remember we spoke about,

we must wait for early traders to get

trapped. And that would be right here.

Your early traders stepped in here,

liquidity is going to be below the lows.

Okay, this is just going to be a massive

range, a massive build-up, okay, of

early buyers essentially. And as soon as

these lows go, that's when you want to

start looking for your buy back up. And

of course, remember, if we are in a

bullish market, that buy below these

lows remain valid into the next level of

liquidity. And look what we have at the

highs here. Sellers stepped in the

market here, all right? And to make this

as easy as possible, look at this circle

respecting this area to the left-hand

side. So, we have left a level of

liquidity. So, this is a bullish market

once we trap the early buyers still,

which means we can take that buy back

up. And look what happens if I play this

price piece of price action out.

Again, we struggle here, induce even

more early buyers. Finally, look at

this. The liquidity has take taken out

from the left-hand side, that structure

liquidity is trapped and taken out. We

get a nice sell-off here, and look at

that sharp reaction out. And look at the

swift again, we want to be involved in

these type of moves here. And if I just

look at that. So,

again, avoid this kind of price action.

You don't want to be trading this kind

of price action. This is the price

action you want to be involved in. And

just to put this into perspective for

you guys, this is very, very important.

From the point where we started building

liquidity, look at this. 5 days of price

action. And then all it took was 18

hours for us to swallow all of that

price action up. So, imagine you're in a

position down here at the lows.

Okay, stop below, targeting the highs.

That price action that took 5, 6 days to

build up got taken out in less than a

day. Okay, think about that for a

second. So, all the early traders are

trapped, that's why the market has that

expansion to the upside. Okay, now I

have another piece of price action in

front of us right here. Okay, so check

this out. Remember we talked about

leaving liquidity for later. Remember we

spoke about that in the very beginning

of the video. Now, look at this piece of

price action down here. I'm going to

circle it. Very simple, don't

overcomplicate this. Look.

We take out a high, price comes back,

and look at all these lows left intact.

Price comes back, and we go long. See

this? Price comes back, and again, we go

long. So, let's remove these drawings.

Let's make this the simplest possible. I

circled this up so that we have left

liquidity here. We have left liquidity

here.

Right? So, this is going to be a future

target. Okay, yes, we couldn't take

longs in this current moment, but the

market has simply engineered liquidity

for us to now, what? Sell into. Remember

how I talked about we can usually sell

into it, or if the market's bullish, you

could buy out of it. In this example,

the market is bearish, so we're going to

be selling into it. Talking about the

current price action we have in front of

us. Who is induced? You want to ask

yourself that. After we take out this

low,

we have sellers induced. The market

pulls back, respects the level on the

left-hand side, and sells off again. So,

we spoke about the we literally had

diagrams talking about this piece of

price action. But, look at all this

liquidity we've now left to the upside.

These are what? I hope you guys are

saying this in your head. Your early

sellers. And remember that rule I told

you guys about? You want to wait for

these early sellers to get trapped

before looking for your sells. This

requires patience. And this talks about

and this goes back to what we were

talking about before, how you need to

wait for that false run to occur. So,

what do I mean by that? You want to wait

for price to come back up, trap out the

sellers, and of course, if we are in a

what? Bearish market,

this could possibly provide us an

opportunity to sell back down, okay?

Into liquidity here. And then of course,

liquidity on the left-hand side we

previously spoke about. So, let's see

what happens here. We take out lows. So,

I'm going to copy and paste this cuz

sellers are induced, aka the early

traders. Then the market goes long, and

look at this. Where do we hunt for? Big

surprise, we come all the way back to

trap out the early sellers. Don't

forget, we're in a bearish market, so

price could be delivering us an

opportunity to sell back down. We're not

talking about entries here. We're not

talking about how to actually enter the

market. That's in previous videos. We

have all of our We have all over the

YouTube channel already. This is

specifically going to be a what we are

speaking about in the beginning of the

video, which is going to be early

traders. So, again, the early sellers

and early buyers, waiting for them to

get trapped. We had that move to the

upside, so I'm going to circle it. You

guys are going to see a little pattern

here about what we spoke about in the

diagrams, low to high

opportunity to sell back down into the

lows. And look what happens. If I zoom

out, remember, from when we started

building liquidity, I'm going to show

you guys the perspective on this

quickly,

To where when we took it out, 4 days and

13 hours. Okay? So, 4 and 1/2 days

basically, we had a build-up of

liquidity. And then,

rapid move back down from when the highs

got taken to when the lows got taken, 19

hours. So, 25% of the time, a quarter of

the time it took for price to build,

build, build. Again, we don't want to be

trading this price action. This is when

we want to trade. After the sellers have

been taken out, aka that rule we've been

speaking about this whole video, waiting

for those early traders to get trapped.

Yes, guys, I hope you enjoyed today's

video. If you do want to see more videos

just like this one, drop a like down

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next. Without further ado, thanks so

much for watching. See you in future

videos.