A trader identifies a high-probability setup where sellers are hitting the bid but price stays stuck, signaling potential liquidity. He chooses a patient entry over an aggressive one, placing a stop below the wick low for a 40-to-15 point risk-reward ratio.
Chapters
there's a huge big trade right here. A+ setup. So you have this range, the volume cluster that you're building here. You see this volume cluster and look at the delta you're seeing here at this, uh, zone that I've drawn. Keep an eye on this. There's a lot of sellers coming in or a lot of orders hitting the bid, but price is just stuck. This really got my attention. So when I see something like this, there's two ways you can capitalize on it. I want to put a sell stop right here to go aggressive because this can actually liquidate down. But since I was looking at this trend and there's low volume nodes here, I was like, can they defend? What I was looking for is price to come down and really lack follow-through on the downside. Okay. And come back in the range. I wanted to see it come down and come reclaim that zone. We broke under, we created the wick, so more selling came in, but price is not going down. So some new buying came in. This is where I would enter. I would put a stop just below this wick low, because if this wick gets hit, I think it's going to flush. Get in here, look at the squeeze. Again, -700. You're out at the highs, 40 points, risking 15 overnight. You're done.