Sellers create highs that respect previous levels, then the market retraces. Wait for the pullback to the low of that retracement and buy, expecting price to move back up. The pattern repeats when you identify these engineered liquidity zones.
I'm not predicting where price needs to run to. I'm letting the market communicate to me what price needs to run to. 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 in 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.
