How to Spot Liquidity with REL #trading #shorts

30 Apr 2023 · 1 min

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0:34

In this YouTube short, The Art Of Crypto explains that areas where price lows or highs are relatively equal represent strong liquidity zones because market makers concentrate activity there. These zones attract market makers who move the market toward the highest liquidity points. The creator offers a practical tip: to avoid poor trades, always wait for one of these key liquidity levels to be broken before entering a position, ensuring trades are taken only after market maker interest is confirmed.

Chapters

Whenever you see relatively equal lows or relatively equal highs, these are the areas where there is the most liquidity located at. And the market makers move the markets based on liquidity. So wherever there is the highest point of liquidity, the market makers will target there. Similarly, these highs right here are relatively equal highs as well, which means this is a level that the market makers is going to be attracted to. Now this is the pro tip on how I prevent myself from taking bad trades and only take the best trades. I always, always wait for one of these key levels to be taken out before I do anything.