Liquidity I - GBPUSD example

Let’s take a quick look at an example on GBPUSD, here we see how both liquidity on the upside and on the downside was drawn into.

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Theory


See how previous lows and highs function as areas of interest when anticipating a draw on liquidity towards them? You must understand that there is no way of predicting which will come first. Only an interest in increasing probabilities when looking at higher time-frame structure. Does it dictate bullish or bearish trends.

Let’s run it back on more time.