You will often notice that price doesn't always deliver into the PDA that you are scouting as your POI.

This goes hand in hand with the new concepts of pressure. We have enlightened this idea when we planted the seed of "Bait and slam" back in liquidity vol I -> The quick 1-2 setup, where we create low resistance and then slam straight into it.

The idea behind it is simple, price will transact at liquid levels. This attracts more market participants because liquid market conditions are easier to transact between currency pairs without the pricefluctuating. This creates pressure.

Market participants will start putting in bigger orders at worse prices than what they would have hoped for, and had planned. Which creates this never-ending spiral where one fumble leads to another.

Having clear invalidation areas creates this pressure, these points are where resting liquidity lies.

“Liquidity run into opposing array with clear order flow during high volume sessions. ”

The idea of fractality applies in this situation;

The most common is that these fake highs/lows occur on the upper boundary of your ETF -> M5, M15. Which will in turn leave behind low resistance signatures on your offbeat M3, M2.

Let’s say this is what our M5 would look like, it then means that on lower TF such as m2/3 price will form the SSLQP and BSLQP signatures in order to create that low resistance liquidity run. It creates traps. What we perceive as traps. But don’t be fooled, it is merely just price being transactable and liquid at these levels. No point in trying to label these as patterns such as harmonics, or Elliot waves.

Sure, you can build and edge around them, but our goal within EXODUS is to just identify them and understand what to do with them rather than trading it.

“Identify the liquid price action as low resistance liquidity runs. Start seeing the signs being left behind by price. ”

This helps us get rid of potential FOMO emotions when we see price retrace towards one of our POI's or arrays. We want to see price seek liquidity in our arrays, rather than it trickles into it.

This is about to get very complex. But we have delivery, and state of delivery.

"Is price coming into our price array with a sharp influx of volume, or is price lacking volume and just trickling into our POI? "

“We want there to be no doubt whether or not price is ready to inject new volume or not”

When it’s clear, you will be able to see it clearly.

Refreshers from previous lessons

Sometimes we don’t have enough clarity to tell if price is forming the actual high/low, or if it is simply building up that trap -> Liquid transactable liquidity before we actually run it.

That is why once again, we focus on one thing. Reacting to price.

“We don't predict, we react. ”

Reacting to what structure price is building, waiting for just a little bit more confirmation before getting involved.

The biggest mistake I notice in this style of trading is that people are afraid to miss the move instead of waiting just a little longer. So, drill this in the back of your head.

“If you are not sure if a certain area will hold or if the retracement wasn't clear/deep enough - don't try and make a guess as that will most likely cost, you. Let price react from your POI and seek lower time-frame confirmations. ”

This is how you avoid traps in the market - Being patient enough to let price show its cards/intentions first.

“Price moves with intent. ”

This example showcases exactly how price delivery should be. This would be the cheat sheet example that you should drill in the back of your head.

Understand that there are protocols that you look for before executing certain trades (Marked with the grey up arrows).

EUR | USD - Case study

The goal is to notice that whenever you see price reacting without actually driving into a certain PDA and begins to become more liquid. Moving without intent, its nearly a guaranteed deal to see it move to a state of seeking liquidity to find it after taking out that low/high.