Jesse Rogers shows why traders miss liquidity levels and how to trade them simply. Mark the previous day's high and low, plus prior session extremes. When price hits these levels, trade the bounce or the break, not every swing.
Liquidity fails you because you choose the wrong levels. The problem is that you look for every single swing high and swing low to be liquidity. This means that you're going to look at every point of structure as an area of reversal, and this simply doesn't work. But enough said. Here's how to choose the right liquidity levels for your trades. First, don't even worry about daily bias, and instead just mark out the previous day's high and the previous day's low, along with the previous sessions, high and low and. And next, instead of trying to guess where price is going to go, just wait for one of these levels to be hit and then watch for a reaction. Now, if the market bounces aggressively, then you can take a reversal trade, but many times it does not. And this is where most traders get it completely wrong. You have to be willing to trade a continuation if the level fails. You don't need daily bias. You don't need to worry about the higher time frames, just trading from level to level with a simple repeatable strategy. Save this right now so you can come back and study it again and again.
