Price leaves liquidity below recent lows that retail traders chase. The best entries come after that low is taken and liquidity absorbed, positioning buy orders right at the low to catch the rally that follows.
How do we take advantage? How do we actually enter the market, target these highs? We have high, low, high, low, and we move bullish to the upside, leaving a level of liquidity to the downside. Typically, people will start looking for buys down here. Any retail traders trading off structure, Fibonacci, whatever it is, they want to be taking buys, but we want to buy below lows, sell above highs. Typically what happens is you get a little false reaction and then price comes down to the low. Once this low right here is taken where the liquidity is, you enter your buy position. Buy will basically be right there. Typically what happens afterwards, the price will move all the way to the upside.
