Kardec Trader breaks down a liquidity-based trading strategy using order blocks, the 50% line, and discount zones to identify entries. The approach distinguishes between external and internal-range liquidity, then uses trading-range points of interest as liquidity draws to set up shorts on SFPs or longs at discounts.
Price is now pulled back. We have our 50% line here. We're now in a discount here. This order block is the down move that caused that market structure break. Well, really what happened here is this is external range liquidity that got taken out. Price is now trading higher and we now have a trading range. What becomes the next draw on liquidity? It's that point of interest back within the trading range. So, yeah, we want to look too long here, but if we're up here and maybe we get some sort of SFP here, our drawn liquidity until we get down to here is for shorts. So even though the high time frame might be bullish. Bullish, you could theoretically look for low time frame shorts, knowing that price is trying to draw back and mitigate this order block and tag that internal range liquidity.
