In a downtrend, price makes a high-low-high pattern. Liquidity pools above recent highs after retail traders sell, not at every swing point. Identify these zones to find buy entries instead of overcomplicating the setup.
If we have the market trending to the downside, we have high, low, high and we continue selling off to the downside, right? This high respected previous highs. So this might sound very simple, but yet everyone they over complicate things. So high respected high, there's now liquidity above this high. We have to use this to our advantage. Meaning if I want to start looking for buys, easy target right here. The most important thing you have to be able to understand is not every high and every low has liquidity. You need to understand once retail is induced, meaning sellers are entering right here, it moves away. Now there's liquidity above this high.
