A trading model targeting 1:10 risk-to-reward ratios by spotting engineered liquidity, where sellers push prices up then the market retraces. You enter on the pullback near the low, betting the price resumes its upward move for outsized gains.
Beauty about this model, the risk to reward is just ridiculous sometimes. I'm talking like 1 to 10 plus. In this example, we want to see sellers enter the market once price comes up here and we start creating this high. What's happening here is when we travel to the upside and we're coming into this level of liquidity again that we want to see ran eventually, look how we are respecting it, and then the market starts to retrace. Now this is what I call engineered liquidity. This is sellers entering the market here, this high here, respecting highs to the left-hand side. So then typically what happens, and the market will retrace. Now typically I want to be buying down here, my entry would be here And then we're going to look for that move back up to the upside.
