How to Utilize Equal Lows Part 1

12 Jun 2023 · 1 min

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In this segment of the tutorial, The Art of Crypto explains how to spot 1‑day relatively equal lows on a chart and why these zones are significant. He argues that such equal lows indicate concentrated liquidity that attracts market makers, who aim to drive price back to these levels to capture that liquidity. The speaker illustrates the concept with two yellow‑circled lows, noting that traders who entered long positions near these points would have been taken back to the mid‑$20K–$25K range, effectively giving them a “free ride.” He emphasizes that while market makers lose money when traders win, they profit when traders lose, highlighting the importance of recognizing these liquidity zones for strategic trade planning.

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And the first thing I want to bring to your attention is going to be these 1-day relatively equal lows over here. Now, if you take a look at these 2 yellow circles here, you can see that these 2 lows are very equal. And if you remember what I said in the beginning of the video, every time you see relatively equal lows, you always want to assume that there is a lot of liquidity here, and the market makers are going to be very interested in bringing the price to that level to take out all that liquidity. Because I want you to think about it this way, by the way, anybody who got, you know, went long at any of these points here basically got a free ride back to the mid-$20Ks, $25K, right? And that's not good for the market makers because whenever you win a trade, they are paying you out of their own pockets. But whenever you lose a trade, your money goes to them.