Short trading commentary by Kardec Trader explaining how to identify highs and lows that lack liquidity, how to recognize liquidity sweeps and liquidity build-ups, and how to choose execution/entry points (selling into areas after liquidity is taken out) with targets to the downside.
One simple way I use for entries is I need to understand which highs and lows don't have liquidity yet. If we have swept out this high and move to the downside, why would there be any liquidity above this high right here? I need to see some sort of liquidity taken out. Okay, this high print and we move away. Meaning there should not be any liquidity above this high. Which means I'm looking to take entries in here somewhere. But how do you do about executing them? I want to see we're tapping into there in the left hand side. We move away, we build liquidity. I'm taking the sell here again off area up here and target to the downside. So the same thing I need to see the build up occur this whole scenario play out.
