Engineered liquidity is a trading method where you trade above a recent high, sell off to create a liquidity point lower, then wait for price to rebound and take out those highs before entering with a stop-loss to target the remaining liquidity at the low.
most important step to this model is understanding engineered liquidity. So from this point, we trade above the high, we sell off to the downside, we create an internal liquidity point, price continues selling off. This is going to be engineered liquidity. Then you have the move back up, boom, highs taken out, and then entry and stop loss. That's when you get to capitalize on this whole move to the downside, and we're going to be targeting the liquidity left at this low.
