A trader explains how price action at previous highs reveals where smart money operates. Watch for order blocks and liquidity placement at these levels, then enter when price retests and breaks below lows before bouncing back up.
Since price takes out this high over here this now tells me the intention behind this move from A to B is now induced buyers into the market meaning they may think there's momentum they're going to mark this as taking a previous high as like a boss in the market so once price returns back to this area at the extreme however they want to look at as support Fibonacci even smart money concept they're going to want to buy down here and once the market moves away simple things again now I know there's liquidity below this high again taken out so as you mark the boss price returns down to this ob and moves away there's now liquidity resting below this period so if I'm now going to frame out a whole sell entry I would look to target this low and if I want to look to enter a buy position I'll simply need to wait for price to trade below the lows so now we're below the lows down here you can look for your buys back up.
