Delivery III - Liquidity Injections

Lets take a quick detour to a new topic - Which will become part of our understanding of an advanced entry model - final sprint.


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Theory

We talk about LI - liquidity injections when we see a good reaction from an imbalance left behind near the completion of either a Buyside/Sellside model.

If we see this, being our daily timeframe, we can conclude one of two things, the LI on monthly is being respected very well, and our delivery is clean and clear to our daily BPR (inducing the BPR)


Start looking at the whole action - reaction process more in-depth. As noted from volume 1, we want to understand which array gives what type of reaction. In the above case, we know that price is reacting to that monthly LI - so we also can conclude it will respect these bearish PDA's and break the bullish PDA's.


See how if you just focus on the main big confluences, it can become so much clearer.


Now pay close attention - this is where we start to understand the counter stage trades.


This is where smaller time-frame trades come into play ; when there is no daily direction, or our FLOW state 60m charts are sideways.


60 minute ranging market – sideways.

Pay close attention - > When there is a level that price has to hit "going higher to go lower, or lower to go higher" Which it NEEDS to hit because it will then become in sync again with higher time-frames we can focus on our FLOW and FLUX state to hit some decent targets.

This implies that we recognize the liquidity pools, understanding how a 15 min or 60 min Array such as an imbalance, OB or what not, needs to be hit, for price to come back in sync with the higher time-frame momentum.


This is where we dial in and target those small scalp plays - 15,20,30 pip plays, with opposing arrays and standard deviations.


“Everything starts with observing where price is going in the bigger picture, then dialing down into smaller timeframes.”


Project & Resources

Project & Resources

Project & Resources