Liquidity I - HTF Order flow
Sometimes we have liquidity on both sides, as mentioned before, we don’t try to predict to where it will go from that moment. We react towards our most probable scenario.
Theory
Our most probable scenario is in this case what the underlying higher timeframe bias is. We use the higher timeframes as a parent figure to the lower timeframes.
This implies that if the hourly timeframe would be bullish let’s say, and there is a consolidation happening on your ETF’s (Execution timeframe). There is obviously the chance that both sides will get swept, but that the overall direction will remain the same of the parent timeframe.
