Short tutorial/talk on market-structure liquidity in a downtrending market: explains identifying highs and lows, how liquidity accumulates above prior highs after retail is induced, and how traders can use that liquidity to time buy targets.
If we have the market trending to the downside, we have high, low, high, and we continue selling off to the downside. This high. Respected previous highs, simple things. 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. But the most important thing you have to be able to understand is not every high and every low has liquidity. Once retail is induced, meaning sellers are entering right here, it moves away. Now there's liquidity above this high.
