The ONLY Liquidity Sweeps Video You’ll Ever Need

I want you guys to picture this. You guys place a trade. You guys have your daily bias fully planned out. Okay? You place your trade. You think it's going to go in your direction because your daily bias is just so freaking perfect, right? And then boom, the trade starts going in your direction and then bow, your trade gets stopped out and then immediately reverses and hits every single take profit. I know that this has happened to the majority of you guys. And guess what? It happened to me all the freaking time back when I was an unprofitable trader. And you guys are probably trying to figure out, hey, what the freak went wrong? My daily bias was completely correct, but what happened with my execution? And that's what I want to talk to you guys about in this video today. This is going to be going over liquidity sweeps because that move that stopped you out is part of the whole concept of a liquidity sweep. You were being used as exit liquidity. This is a huge joke in the trading community where people say like, "Oh, you were my exit liquidity." That is very much the case. And I was used as exit liquidity back when I was an unprofitable trader. And I'm sure a lot of you guys are being used as exit liquidity. So today I want to go over probably the biggest concept in trading, the biggest and honestly like most foundational point of my strategy that I use on a daily basis, which is liquidity sweeps. I want to break it all down for you guys, show you guys how to identify them, show you guys different examples of draws on liquidity because there's examples of high time frame liquidity, there's low time frame liquidity, there's high resistance liquidity, there's low resistance liquidity, and then show you guys a couple examples of how we can use it on a day-to-day basis. And as well as our strategy so that we can actually take executions off of these liquidity sweeps. And no, this isn't going to be super confusing. It's actually one of the easiest concepts to learn and understand. But again, with trading, everything just comes with time. When we first learn something at the start, that's just how all high barrier of entry skill sets work. Okay? So, when you guys are first getting into this, you guys are probably going to be thinking, "Hey, this is a liquidity sweep." But it's actually not. Okay? But don't worry, it's going to take some time and we're going to get some repetitions in in this video and then after this, I want you guys to go practice that. So, with that being said, I'm going to give you guys a complete like beginner breakdown at the start and then we'll get more advanced as this video moves on. And yeah, with that being said, let's get on to the charts.

The first thing that we need to do is just even understand what liquidity is in the first place. A lot of people throw this word around and some people just aren't really using it correctly. So, what I like to do whenever I'm teaching a new confluence or teaching a confluence or even trading off of any confluence, I want to understand why price is moving off of certain levels or why I'm even using the confluence in the first place. Because if I'm just copying a random ass strategy from some dumbass YouTuber and I don't know why price is moving, then you're never going to make it in trading if you're just copying and pasting it because you don't know why price is moving. So, ideally, we understand why price is moving off of every single confluence. So that's what I want to break down right now. So again, what is liquidity? Liquidity is pending and resting orders. What is a liquidity sweep? A liquidity sweep is when we go and take out and fill those pending orders to be able to move price in the opposite direction. So with that being said, we need to be able to know and be able to identify where liquidity lies on the chart. So we're going to do a quick little breakdown. This is super super beginner and I know you guys are probably going to think, "Oh, I I already know this." But just bear with me. When we are in an uptrend, what is an uptrend? We move in higher highs and higher lows, right? So, as an absolute beginner, when we see that we're in an uptrend, what do most retail beginner traders do? They see a high get pushed above in an uptrend. So, what are they probably going to do? They're probably going to press buy right here. On top of that, when we see this little move down, even though we're in an uptrend, there's going to be some people that are trying to predict a reversal. So, there's people that are pressing sell on this move down. So, not only do we have people buying when we push above these highs, but we also have people trying to enter into sells on this move down. We don't really want to care about the sell orders that are being placed on this move down. But what we do want to care about is where their buy orders are going to be. And you're probably saying, "Well, they're in sells. Why would they have buy orders?" Well, just like with any trade, we have to have an exit point. If they're in sells here, where is their stop-loss going to be? Well, thinking in retail trader fashion, their stop loss is probably going to be above these highs. So, what does that mean? If they get stopped out of this trade, what do they have to do? They have to buy back those sell positions for a higher price and in turn lose their trade. So, there's two forms of buy orders sitting above highs in the market. There's people entering into long positions when these highs get pushed above. And then there's also people who were in sell positions down here. And if these highs get pushed above, they have to exit that trade because they got stopped out. So there's two forms of buy orders sitting above highs. So again, what is liquidity? Liquidity is pending orders. So we know that there's going to be pending buy orders above these highs for people trying to go long or trying to buy within this uptrend. And then we also know that there's people who are going to be getting out of their trades from their sell positions. So there's going to be pending buy orders above these highs as well.

Now, it's the same thing in a downtrend. Okay, just a little bit opposite. So, we move in lower highs and lower lows. What do we know about lows? Well, again, if we're trying to follow the trend, most retail traders, they're probably going to be pressing sell once these lows get pushed underneath, right? And then same thing with these uptrends. There's people that are going to be trying to predict a reversal. So when they see this little move up, they're probably trying to buy it. Okay? So what does that cause them to do? They're going to put their stop-loss or their sell orders, their pending sell orders underneath these lows. So again, if they're trying to buy on this little retracement up, where are they going to put their stop-loss underneath this low where they're going to have to sell those buy positions back for a loss? So what do we have? We have two forms of sell orders underneath lows in the market. So, you're probably saying, "Okay, that's great and all, but how does this relate to us trying to catch the top and bottom of moves? How is this going to help us predict?" Well, as we know, liquidity is pending orders. So, we've just gone ahead and identified where the majority of pending orders are going to be within the market. Very rarely are we going to have pending orders on a move that's already going up. Most of the time we're going to have pending orders underneath lows and above highs. Why? Because that's where people are trying to catch trades. They're trying to top tick and they're trying to bottom tick. So by identifying where pending orders are within the market, we are now able to identify where liquidity lies. Where does liquidity lie? Above highs and below lows. So that's the first thing that we need to understand. Liquidity, where is it? Above highs and below lows. Boom. So, now that we know where liquidity is, that's awesome. But that doesn't really tell us when and where to buy or sell within the market. That just shows us and tells us that, hey, we have pending orders above highs and below lows. And again, if we were to just go off of this and we're in an uptrend, if we just tried to press sell once we push above every single high, we would probably lose because we know that uptrends move in higher highs and higher lows. So, you're probably saying, "Well, TJR, how the [ __ ] are we supposed to predict when price pushes above a high? How do we know that it's going to be a liquidity sweep? How do we know that those buy orders are going to get filled for price to move in the opposite direction?" It's exactly what I'm going to teach you guys later in this video.

So, now that we know where liquidity lies, it's above highs and below lows. We also want to be able to figure out, okay, when we're within a market setting, we know that there's three different sessions. Okay? There's London session, there's Asian session, and there's New York session. We need to think about each one of these sessions almost like their own like character, their own avatar. So we have the Asians, we have the British, and then we have the all-Americans. Okay? And every single session there's new traders and new money coming into the market. Me personally, I trade US indexes, so the S&P 500 and NASDAQ, but this still applies to foreign exchange. And I'll show you guys examples of this happening as well. We need to think of every single session as new traders coming into the market, new money coming into the market. So when Asian session starts, we need to think, okay, there's new traders coming into the market. There's new market makers coming in. What are they trying to do? They are trying to push the market in the direction that they want price to go. So with that in mind, what do they need to do in order to push price in the direction that they want to go? They need to fill their massive orders because again, they can't just press buy and then boom. That would cause the chart to just boom, go up. And what do we know about the market makers? They're really greedy. So if we are in an uptrend for for example, if they just press buy on their massive massive amounts of orders and they would get filled right here and then price would move up because why? There's not enough pending sell orders to just fill them at the price that they want. So price is going to move up higher and then maybe they get filled again here and then it moves higher. They get filled again here. They get filled again here. They get filled again here. And that's not ideal for them. They want to get the best price possible. So, what do they have to do in order to fill their massive amounts of buy orders? Well, they have to sweep out liquidity. Why does this have to happen? Because underneath lows, what are there? Massive amounts of sell orders. So, let's say Asian session opens. And again, we're going to put all this together. Okay? So, Asian session is not really the best example. Let's say New York session or London session because there's just a lot more volume during those sessions. Let's say London session opens and we have a high time frame low right here. Boom. There's new traders that are coming into the market. They want to be able to push price in the direction that they want the session to go. If they want price to move higher, what are they more likely going to do? They need to seek out sell orders. They're probably saying that doesn't make sense. If they want to fill buy orders, yes, it does. Because this is going to be a little throwback to maybe your high school economics class, okay? Back in the day when people were just doing the stock exchange, back when that [ __ ] was first [ __ ] founded, if I wanted to buy one share of Apple, what did I have to do? I had to pick up the phone, I'd call the broker, and I would say, "Hey, I want to buy one share of Apple." They say, "Okay, cool. We're going to try and find someone that's willing to sell it to you." It's the same thing today. When I'm trying to buy a share of whether it be the S&P 500 or NASDAQ, there has to be someone willing to sell it to me. Okay? This has all become digitalized through brokerage and through exchanges. So it's no longer exchanging pieces of paper. It's no longer taking weeks to be able to do this. But the same thing applies. So when these new market makers come into the market via London session, Asian session, and New York session, when they're trying to fill massive amounts of buy orders, and I'm saying massive amounts, they need people willing to sell them, okay, to be able to sell to them for them to be able to buy. So, what do they do? They will push price down to an area where there's a massive amount of pending sell orders. And then what are they able to do there? They're able to fill their buy positions. And once they are able to fill their buy positions, it doesn't cause price to just move up and then they get filled all the way on the way up up up. No, they're able to fill all of their buy positions right down here. Why? Because there's a massive amount of pending sell orders. Because let's say that we were in a downtrend here. When we push underneath these lows, what are people doing? They're pressing sell. On top of that, there's people all throughout this leg up that were trying to buy, that were trying to catch this reversal. And where is their stop loss? Underneath here. So, when they get stopped out, they have to press sell. There's also people that are trying to press sell to try and catch this downtrend. So, what does that give the market makers the ability to do? Fill their massive buy orders. And then boom. When they fill their massive buy orders, what does that give price the opportunity to do? Change direction and move higher and higher and reverse the trend. And that's exactly what liquidity sweeps are.

So, let's show this in the other direction. Again, if we're in an uptrend, what do we know is resting above highs? Massive amounts of buy orders. And again, you're probably saying, well, how do how do we know when we're supposed to press sell? Because if we're in an uptrend, uptrends move in higher highs and higher lows. Do I just press sell every time we push above a high? No, that's not the case. And again, this is going to go from more beginner to advance. Right now, we're just talking about identifying them and how we can see these on the chart. And I'm going to go from this to showing this on the candlestick charts. And then from there, we're going to get into how we can actually predict when we're going to get these liquidity sweeps and when is the most opportune time to be able to execute on these sweeps or being able to actually identify what highs hold more value and what lows hold more value. So let's say New York session is opening right here. We push above these above these highs. What is above highs? Massive amounts of buy orders. Why? Because retail traders are buying within the uptrend. And then also the people that are pressing sell throughout this move down. What do they have to do? They have their stop loss above these highs. So they have to boom get stopped out of their trade. So there's two forms of buy orders above here. New money comes into the market via New York session. New York session traders want to move price in the direction that they want it to go. And when I say New York traders, I'm talking about the market makers. Okay? So I'm talking about massive in institutions, the people that are actually moving the market. Me personally, I can't just press [ __ ] buy and then cause price to move up. I don't have the capital to do that. No, no retail trader has the capital to do that, okay? So, just bear that in mind, okay? I don't want you guys getting on here and thinking that you guys can manipulate the markets with your orders. So, new money comes into the market, they're saying, "Okay, we want to move price down." So, if they want to move price down, what do they have to do? They have to be able to execute a whole bunch of buy orders in order to what? Fill their massive amounts of sell orders. And again, when they push above these highs, because all of these buy orders are getting executed, they're able to get filled at the tippy top and then boom, cause price to reverse and go back down. And this is probably the exact situation that a lot of you guys are getting stuck in where you guys are pressing buy above highs because you think it's breaking out and you think price is going to go higher and then boom, you get stopped out or you guys are pressing sell within here and then you guys are getting stopped out and then boom, price goes down to hit all of your takeprofits all the way down here and you're just thinking, man, I can't seem to win. Whether it's price just literally going in the opposite direction of me, I'm getting stopped out or I get stopped out and then boom, price moves in the direction that I wanted it to go.

So, that being said, we're going to go ahead and show these liquidity sweeps live now on the candlestick chart. And then from there, we're going to go deeper into the candlestick chart of how we can actually be able to predict where these liquidity sweeps are going to happen. Because again, uptrends, we move in higher highs and higher lows. So, more often than not, when we push above highs, it's not going to be a liquidity sweep. It's just the trend continuing. So, how are we able to actually spot these and when are these going to happen? That's what I'm going to explain later in this video. But first, let's go on to the chart and show you guys this happening in real time. This is something else that I want to mention. Really awesome thing about all the confluences that I use, whether it be fair value gaps, whether it be liquidity sweeps, these happen on every single time frame. So, there's high time frame draws on liquidity, there's low time frame draws on liquidity. Liquidity is necessary for the market to move. Why? Because that's where orders are filled. Orders are filled by liquidity getting swept. So no matter what time frame you're trading on, this is applicable. Okay? This isn't no fiveinut S&P 500 copy and paste strategy. Okay? The majority of those are [ __ ] This is actually the reason why price is moving on a daily basis on every single time frame. It's literally how the market moves. So again, I'll literally show you guys examples on literally every single time frame. We can literally show an example from today. Let's look right here. This is I mean this is a perfect example. This was New York market open. What do we see price do right when market opens? We come down and then what? We take out this low and we take out this low. And now what is price doing? Boom. It goes up. Obviously this is in hindsight. So it's going to take time for us to be able to figure out like how can we actually predict that price wants to go up off of this. But this is just the first step. It's just like being able to identify these on the chart. And this is something that I want you guys to do. It's a super easy exercise for you guys to do is literally just go onto any time frame chart and just start identifying liquidity sweeps. So you can see where a high gets pushed above and then boom, price reverses off of it. And again, this happens on every single time frame. So we can see uh market opened, new money comes into the market. What does price do? It comes down, pushes underneath one low and two low. So what's underneath these lows? Sell orders. There's sell orders right here. There's sell orders right here. What did that give the market makers the opportunity to do? Fill their buy orders underneath these lows to cause price to do what? Boom. Move higher. Okay, so that was on 30 minute time frame. Let's show an example on the 4hour time frame. Let's see here. This is a good example right here. Boom. What are we in? We're in a downtrend. Price is moving down. Okay, so again, retail traders, they're saying, "Hey, we made a high. We made a low. We made a lower high. We made a lower low. What do we think price is going to do? We're in a downtrend. It's going to go lower. What is there underneath these lows? A whole bunch of sell orders. Boom. Price comes down, sweeps out these sell orders to give market the opportunity to do what? Fill their massive buy orders. And then boom, price moves higher just like that. Okay. Same thing right here. Boom. What do we have? Sell orders underneath this low, this low, and this low. What does price do? Sweeps all of them out. And this is actually a good example of something that I'm going to get into later of this video, which is low resistance liquidity and how we can actually identify what draws on liquidity are better than others. There's a couple different forms. There's like three different forms of liquidity that are much higher confluence. And we're going to explain what highs and lows hold more value than others. Just don't worry, we're going to get into that a little bit later. But we can see boom, what does price do? Comes down, takes out these. Boom. Execute sell orders. Execute sell orders. Execute sell orders. What does that give the market makers the opportunity to do? Fill a massive amount of buy orders against all these sell orders to make price do what? Boom. Move higher. Let's show an example in the opposite direction to the downside. We actually have a good example right here. So again, let's look at this. We see what does price do? Boom. We move up. This is another good example of low resistance liquidity. We have a high right here. We have a high right here. A lot of people would see this massive up move and what are they probably thinking? They're probably thinking, "Oh my goodness, it's a breakout. It's a breakout." There's a whole bunch of buy orders above these highs. What does that give the market makers the opportunity to do? Place their massive amount of sell orders after taking out all of these highs to cause price to do what? Move lower. Okay.

So, now that we've done that little example, I want you guys to do that on your own charts of not trying to predict where a liquidity sweep is going to happen because we're going to get into how to do that later in this video. But I just want you guys to go on a couple different time frames and just go and identify price moving underneath a low, sweeping out liquidity, and then changing direction from there. And then same thing to the upside. I want you guys to be able to go in there, see and identify price moving above a high, sweeping liquidity, and then moving lower from there. Okay? So once you guys have done that, then come back to this video. Okay? So now that we know liquidity lies above highs and below lows, that's step one. Step two is being able to identify the better or I guess uh how how should I explain this? Like the higher quality draws on liquidity because like I said, there's draws on liquidity on every single time frame. If we go to the one minute time frame, I can show you guys liquidity sweeps as well. So let's find a super quick example of this. Boom. This is a good example right here. Look at this. We have a low right here. What does price do? It comes down, it sweeps out this low, and then boom, price moves higher. Same thing right here. Boom. What do we do? We come underneath these lows to sweep out liquidity. And then boom, price moves higher. Okay, this happens on every single time frame. But are we going to try and catch liquidity sweeps on the one minute time frame? Is that really optimal for us? Probably not, right? Because this is one minute movements. Do we really want to be catching a move off of one minute orders getting filled? No. Ideally, we're catching moves off of high time frame orders getting filled. Why? Because high time frames hold higher power. If we're looking at the high time frames, that's going to dictate where the big candles are going. So, again, we're not trying to catch one minute moves. And for the most part, if you're trying to take a liquidity sweep off the one minute, by the time price moves in the direction, it's it's already said and done. Okay? So, that's why we want to be looking at the high time frames to find our draws on liquidity.

So, with that being said, we're going to go back to my little Picasso drawings here, and we're going to talk about the three forms or there's like fourish draws on liquidity that hold more value than others. Okay, so the first draw on liquidity that is going to be better than others. And again, draws on liquidity are highs and lows within the market. Let's not forget that. So the first form of liquidity that's high confluence are session highs. Jeez, and lows. Okay, so just like I was telling you guys earlier in this video, the sessions, Asian session, London session, and New York session, when these open, there's new traders coming into the market. And again, it's high confluence for the new traders to take out the old traders because why? There's probably a whole bunch of orders to be filled above those session highs and below those session lows because that's where stop-losses are going to be. Okay? And that's also where new orders are going to get filled. So, I have a nice little indicator that already does this for me. And today was actually a perfect example of this. If we go in here, we can actually see this literally get perfectly executed. If we go down under the fiveminute, we can see boom, New York market opens right here at 9:30. This, bro, it's freaking perfect. Okay, New York opens at 9:30. This blue line is London session highs. This red line is Asian session highs. What do we see right when New York market opens? We push up. We take out London session highs. We take out Asian session highs. And then what does that cause price to do? Boom. Rotate straight down. Okay. What was happening above these highs? High orders were getting filled. What did that give the market the opportunity to do? Fill their massive sell orders to cause price to go down. Super easy, super simple. Those are high confluence highs. It goes for either session as well. So I'll show a quick example on foreign exchange. Let's just pull up EuroUSD really quick and we can show examples of this. So I mean like right now it's literally happening in front of our eyes. So let's put on boom. This is New York market open. It's awesome because this [ __ ] happens literally every single day. New York market opens again. New traders are coming into the market. What do the new traders want to do? They want to be able to fill their orders to push price in the direction that they want price to go. What happens when New York market opens? Boom. They push price up here. Not to move price higher, but to do what? To fulfill their objective of filling their sell orders. They push price above what are these? These are London session highs. We push above London session highs. Fill boom all of these buy orders to do what? Fill the market makers. Massive amounts of sell orders. And what can we literally see in real time price doing reversing off of that? So that's a quick example of session highs being high confluence.

Now what is another form of liquidity that is high confluence? It is going to be relative equal highs and lows. What does this mean? You ever see on the chart when we make a high like this and then there's another high that doesn't quite go above this high, but it's super freaking close. Why is this a super good draw on liquidity? Well, because now instead of just one set of buy orders being above a high, now we have two sets of buy orders sitting right next to each other. So, when we see this, the market makers are going to see this and be like, "Oh, holy [ __ ] We can go up here and we can sweep out these buy orders and these buy orders without having to like do too much. Okay? Because imagine we have highs like this. What probably makes more sense for the market makers to go after? It would probably want to go after these highs, right? Compared to these highs. Obviously, we're only permitted to what price action gives us. But when we have highs like this, this is a super strong draw in liquidity. Why? Because there's a whole bunch of buy orders sitting above these highs. Why? Because they're pretty much at the same level. So, if the market makers want to move price lower, what are they going to do? They're probably saying, "Holy [ __ ] this is a super juicy area where there's a whole bunch of buy orders that are going to get executed. So, what can we do?" We can push price above these highs, fill all of our sell orders, and then cause price to go in the opposite direction. And this doesn't even have to be two highs. It can even be three highs that are stacked up like this. Boom. Okay. And this is an example of low resistance liquidity or we'll just put highs and lows because liquidity is above highs and lows. So relative equal highs and lows are an example of low resistance highs and lows. So why is it low resistance? Because if we have or I'll explain low resistance and high resistance liquidity in a minute, but relative equal highs and lows again, if there's three highs that are just stacked up like this that haven't swept out any of these orders yet, there's so many pending buy orders right here that it's super easy for price to just go up here, sweep it out, and then move down. Okay, same thing to the downside. If we have boom lows that are just stacked up like this, there's a whole bunch of sell orders that are pending that are sitting right underneath here. Super juicy, looking really freaking good for price to come down, sweep out those sell orders, fill their massive buy orders to push price higher. So, low resistance highs and lows are essentially just stacked up highs and lows. So, similar to this, relative equal highs and lows because these are relatively equal, but they haven't swept out the buy orders. Okay? So, they're just buy orders, buy orders stacked up with each other. Low resistance highs and lows. I like to call it trend line liquidity. So, again, like we were mentioning, when we're within an uptrend, what are we moving in? Higher highs and higher lows. So, let's say we have a trend like this. What is resting underneath all of these lows? A whole bunch of sell orders. Okay, this is low resistance liquidity. Why? Because when price wants to go down and sweep all of this out, what would it make sense for price to do? Would it make sense for price to just go down and only fill one set of those sell orders? Or would it be super freaking easy for price to just say, "Hey, we could literally get four times the amount of sell orders by just taking out all of these lows that are stacked up really freaking close to each other, just like these relative equal highs and lows. Take out all of them and then fill literally four times the amount of their buy orders to push price in the direction that it wants to go. That's low resistance liquidity. It's when we're within an uptrend or a downtrend and we have lows or highs that are stacked up against each other where it's super easy for price to just come down, take out all of them, and then push price in the opposite direction.

So, we showed you guys example of session highs and lows. Now, we'll go on the chart and show you guys an example of relatively cool highs and lows and low resistance highs and lows because they're pretty much the same thing. There was a really good example of this on the 4 hour uh two weeks ago. So, I'll show you guys that example and I think I already mentioned it. Go ahead and take this indicator off. And again, if you guys want those session high and low indicators, I'll leave a little link in the uh description if you guys want that. Boom. This was the example that I was talking about. So, let's look right here. Again, we're trying to find liquidity on the high time frames. What do we have right here? We have a pretty healthy uptrend. We're moving in higher highs and higher lows. So, we have a low right here. That's one. We have a low right here. That's two. We have a low right here. That's three. We have a low right here. That's four. When the market wants to move higher, is it just going to sweep out this low and then move all the way up? Or would it make sense for price to want to come down and take out one, two, three, four of these lows because they're all stacked up relatively close to each other and can offer literally four times the amount of pending orders that can be filled by price coming down and sweeping it out. So literally like such a perfect example of this. Price comes down, sweeps out all of those orders, and then what does price end up doing? Boom. Moving higher. Okay, this is a perfect example of trend line low resistance liquidity that ends up boom getting swept out and then price reacting off of it. Okay, let's go ahead and find an example of this to the downside. We actually had a pretty good example of this the other day. Yes, this is exactly what I was talking about. Boom. So, again, look right here. It really starts up here. We have a high right here. And then what do we have? A high right here. Look, look how close these highs are. Boom. Buy orders resting above these highs. Buy orders resting above these highs. Buy orders resting above these highs. Buy orders resting above these highs. Buy orders resting above these highs. Look how close and juicy and how stacked up every single one of these highs are. This is just boom. Buy order [ __ ] central. Retail traders are going to see price close above these highs and just be like, "Holy [ __ ] it's a breakout. Price is going to move higher." But what did this give the market makers the opportunity to do? Boom. Stop out all the people who are pressing sell on this little downtrend that we made. And on top of that, get everybody who thought that this was a breakout to enter into a buy positions to just give price the opportunity to do what? Boom. Absolutely tank the market and go lower. Okay, so this is another good example of low resistance liquidity. Low resistance liquidity. It's essentially just trend line liquidity. It's stacked up highs and lows where we have boom high high all stacked up together. This is a super high confluence and a good draw on liquidity.

Okay, so the other good um I don't even want to mention mention that in this video because it doesn't really even happen that often. These are really the main really good, really solid draws on liquidity that we want to focus on coming into market opens on a daily basis. We want to be able to identify session highs and lows within the market. We want to be able to identify the relative equal highs and lows. Why? Because there's a whole bunch of buy orders and sell orders when there's highs and lows that are pretty much equal together. Oh, and then this we'll do 2A when we have dead ass like dead equal highs and lows as well. That's super super good draw on liquidity. So just like how relative equal highs and lows are good draws on liquidity, equal highs and lows are just are just as good if not better. So let's say and again this doesn't happen too often, but I figured I'd mention it. Let's say on the S&P 500, boom, we have two highs that are literally dead equal the same exact price. This is a super good draw on liquidity. Why? It's the same reason for why relative equal highs and lows, why low resistance highs and lows is a good draw on liquidity. Why? Because there's just a massive amount of buy orders above here. Same thing to the downside. If we have equal lows right here, what is there? Again, as long as these are the same exact price, even if this one's a little bit higher, then that makes it a relative equal higher low. What is resting underneath these lows? A whole bunch of sell orders that have the potential to get filled for price to do what? Bang. Sweep it out and then move price in the other direction. Okay, so these are the three draws on liquidity that are going to be honestly our like main focus going into market opens. And why do we want to focus on market and session opens? Because there's new traders coming into the market that want to push price in the direction that it wants to go. So that leads me into number two. Now that we know how to identify draws and liquidity, now that we know what draws and liquidity are, we want to be able to identify, hey, when and where can we execute on these? Because it's one thing to just say, "Okay, I know how to identify draws on liquidity. I'm just going to mark out every single one and I'm just going to take a trade whenever one happens." That's probably not going to be the best idea because time plays a huge part in the market. So, for me, time timing is pretty much everything. And as you guys know, I pretty much only trade session open. So, I only trade US market open. I'm really never going to be trading an hour after New York market opens because there's almost always going to be a form of manipulation taking out either session highs and lows, relative equal highs and lows, equal highs and lows, or low resistance highs and lows within the market at session and market opens. Why? Because there's new traders coming into the market that need their orders to be filled to push price in the direction that it wants to go. There needs to be a form of manipulation in order to fill orders to push price in the direction that it wants to go. So, every single market open, what do I know is going to happen? There's going to be some form of manipulation and that's what we're going to go talk about right now. So, timing is a huge, huge, huge thing within liquidity sweeps because again, I already mentioned this. When sessions open, that's when new money's coming into the market. It's going to want to move price in the direction that it wants to go. So, we need to be able to identify when new money comes into the market. So, I'm on Eastern time. You guys can apply this to whatever time zone that you guys are on, but I'm going to do it on Eastern time. You guys can figure it out for everything else. So, Asian session starts. I wouldn't I would suggest against trading Asian session just because there's not that much volume, but Asian session starts at 1,800 Eastern time. London session starts at 3 a.m. and then New York session opens at 9:30. Okay, so on every single one of these session opens right around these times, market is going to be actively trying to seek out some form of these draws on liquidity to move price in the direction that it wants to go. Just like how I showed you guys with Euro USD, market opened. What did it do? It sought out those London session highs. Again, that's one of our forms of draws and liquidity. And then price reversed off of it today. What did we do on the S&P 500? Let's go ahead and put market open on right here. Market opened right here. What did we do? We moved above London session highs, Asian session highs, and then we reversed down. We actually had two liquidity sweeps today during New York session. We came up and we swept out London session highs. Let's go ahead and put these back on here. We took out London session highs and Asian session highs. We made a reversal down and then we also came down and took out boom, these lows right here, which were actually forms of low resistance liquidity on the low time frame. So, we can see there's a low right here. There's a low right here. These two are low resistance draws on liquidity. There's lows on the fivem minute time frame pretty much all the way down throughout here. Look at this. Look at this. Boom. And then if I just remove this so you guys can see it better. Look, all of these lows are stacked up. What is that? Low resistance draws and liquidity. Market opened. We come down. Boom. We get two forms of liquidity sweeps. We come up. We sweep London session high and Asian session high. And then boom, we come back down. We sweep out low resistance draws on liquidity. And then boom, we rotate right back up. Orders filled here, orders filled here, and we move on every single one of those.

Now that I feel like you guys have a pretty good gist of identifying these draws on liquidity, what draws on liquidity hold higher power than others. When we should be looking for draws on liquidity, again, we're looking for draws on liquidity to get hit. Not right when market opens, okay? It's not always going to happen like right when New York market opens is like boom liquidity sweep. Sometimes it takes time. Okay, just like how we identified with EuroUSD right here. We can see that market opened and then we didn't sweep out this liquidity until 30 minutes into market open. Why? Because we were a little bit underneath these highs here. These were London session highs. Market opened. It wanted to manipulate to the downside. What did they have to do? They had to push price up, sweep out this liquidity, and then boom, send price lower. Now that we know how to identify draws and liquidity and when we're trying to see liquidity get swept, let's talk about how we can actually find executions to be able to take winning trades off of this. Okay, so I have full in-depth YouTube videos going over my full execution. So I don't want to go like really super crazy in depth on all the confluences that I use and stuff like that. If you guys want to learn about fair value gaps, break of structure, inverse fair value gaps, and stuff like that, I'll leave a little link in the description to my free course that goes over literally every single thing that you guys need to go. It goes in super super depth of going over fair value gaps, breakup structure, every single thing that you guys need to know. And on top of that, if you guys want like just even more in-depth like personal questions, cuz I know that I can only do so much on these YouTube videos of you guys getting on here and then like thinking like, "Oh man, I have a personal question on liquidity sweeps that he didn't answer. You guys can sign up to be one of my students where I can personally get on phone calls with you guys and answer literally every single trading question that you guys need. I'll leave a link in the description for that. But if you guys are just getting into trading for the first time, you guys don't need to just like immediately jump in and just be like, "Hey, I want to be coached by you." By all means, if you guys want to do that, that's fine. But I would highly suggest you guys start with my YouTube videos first. Start with a free course. And then from there, if you guys have more questions, if you guys are still struggling and want to learn from me and other profitable traders, I'll leave a little link in the description to the blueprint, which is where I do my private mentorship. With that being said, how can we actually take executions off this? This is a good example. Let's go ahead and put on our session highs and lows right here. So again, this is what we're looking at. New York market opens at 9:30 a.m. How could we

Have executed on something like this? Well, we have London session highs. We have Asian session highs. These are our key levels. One of our key levels got hit. Boom. From there, what can I do? I can scale down to the lower time frames. This was actually a really good example of this. We push above London highs. We push above Asian session highs. Then from there, what do we get? We get boom a one minute break of structure right here. And then from there, what else am I going to wait for? I'm going to wait for a fair value gap to get filled. Boom. This fair value gap gets filled. We get a down candle closing out of that. What can we do? We can take a short position there. We can put our stop loss above these highs. And then from there, what are we going to target? How can we exit off of these trades? By simply targeting other draws on liquidity. Why? Because other draws on liquidity have potential to move price in the other direction. So, it's a super awesome point to take profit at.

So, again, what else did we identify? We identified on the 5minute that there's low resistance draws and liquidity all throughout here. So, this can be your take-profit one. Boom. Perfect. A 1:1 risk-to-reward ratio. Boom. This can be take profit two. Boom. Low resistance. Oops. Low resistance draw and liquidity gets hit. I mean, we don't have to mark out literally every single one of these, but you guys get the point. All of this is low resistance liquidity that has the potential to change prices direction. So, again, when we're taking trades off of liquidity sweeps, just like how we're entering off of liquidity sweeps, we want to be exiting when we're taking out draws on liquidity. Why? Because that gives price the opportunity to reverse. It's a profit-taking area where price has the opportunity to be able to fill orders to push price in the other direction.

Okay, so this was a really good example of this literally today of this happening where we get liquidity sweeps of one of our really key draws on liquidity, which is session highs and session lows. We get a one minute break of structure. We get a fair value gap that gets filled. We can execute off of that. And then where do we exit on the other forms of liquidity? Why? Because that is where price has the potential to be able to take profits and change in the other direction. Okay, we're not just taking profits off of random draws, okay? We're not we're not just taking profits off of Fibonacci extensions. Again, I like to have reasoning for why price is moving in the direction that it's going. Okay? Just like how I like executing on like smart and sound reasoning of why price is going to be moving in the way that it does, I like to exit on areas where hey, there's going to be profits getting taken or an area where price is going to reverse off of. So just like how we enter on liquidity sweeps, I'm exiting on liquidity sweeps as well. So this is a prime time example of how we could have executed today. Let's show one or two more examples of this.

This is a pretty decent example. Even though this is on a US index, this is a good example of how every single you'll you'll see this, bro. This is a good example of how every single session they are trying to actively seek out draws on liquidity to push price in the in their direction. So, what is this? This is London session open on a Thursday. What is this? This is Asian session high. Okay. So, let's look here. London session opens. Where do we immediately go? We immediately go up to do what? Sweep out Asian session highs. Why? Because there's a whole bunch of buy orders right here. What does London session want to do? It wants to push price in the direction that it wants to go. When we get above these highs, what does price immediately end up doing? It starts reversing. So, let's see if we can find any form of entry within here. Okay. So, boom. Price comes up, sweeps out these highs. We're able to fill these sell orders. When do we get a break of structure? We get a break of structure right here. And then from there, again, because this is a US index, not really too many confluences, but we do come up and we fill equilibrium. And then boom, we get a down candle out of that. Can put our stops above these highs right here. And then boom, what can we do as our targets? We can target. Look at this. What are these relative equal lows? These lows are super close to each other. What is this? A high confluence draw on liquidity. This is obviously pretty unrealistic, but ideally we're taking profits as price is going down because ideally our first take profit isn't like a 1:9 risk-to-reward ratio. Obviously, that would be nice, but I don't want to sell you guys on a freaking dream here and say that you're going to be able to hit trades like that every single freaking day. But this is a good example of this. Okay, we also have a low right here that we could take out. We also have low resistance liquidity all stacked up throughout this one minute time frame. Okay, so we have a low right here. Low right here. Low right here. Low right here. What is this? This is an uptrend. This is low resistance liquidity that price is going to want to actively seek out to do what? To take out. And this is a potential point where price has the opportunity. Again, emphasis on opportunity and potential. Just because price has the opportunity to reverse. And this is the last thing that I'm going to get into on this video. Just because it's a high confluence draw on liquidity. Just because London session open and we push above Asian session highs doesn't mean we can just press sell up here. We need to wait for these other confluences to tell us that price wants to move lower. Okay? So just because we're moving above a session high doesn't mean we can just boom instantly press sell. Just because we move underneath low resistance draws on liquidity doesn't mean we can press buy. We have to wait for confirmation. And that's why I told you guys to go watch the free course. That's why I told you guys to sign up for the mentorship because all of those things are covered in depth and show you guys exactly how to be able to identify these things. Okay? But this is just a liquidity sweep video.

So just like how we're executing on liquidity getting swept, we are exiting on liquidity getting swept. Why? Because price has the opportunity and the potential to reverse off of these lows. Why? Why does they have the opportunity to reverse? Because there's pending sell orders underneath here. And again, this is why I [ __ ] love trading, bro. Everything makes sense. When you do things with confluences that make sense, you actually understand why the market moves. We know why we're entering sell positions here. Why? Because there's a massive amount of buy orders here. We know why we're exiting our positions here. Why? Because there's massive amounts of sell orders here that have the opportunity to get filled for price to move in the opposite direction. So, if we're in sells, wouldn't we want to buy back our positions when people are willing to sell it to us? Just like the market makers. So, if the market makers have the opportunity to buy back positions here, wouldn't we want to buy back partial profits on our short position here? Yes, obviously we would. That's why liquidity is such an important concept. Okay.

And the very last thing that I want to talk about in today's video is just knowing and identifying when we're going to sweep out liquidity. It's one thing just to mark out every single high and low. The market is going to move how it wants to move. It does not have any sort of obligation to listen to our daily bias. It's one thing for me to sit on this computer and be like, "Hey market, you have to go above this high. And when you go above this high, you have to fill those buy orders. You or you have to fill those buy orders so you can fill your sell orders to go lower." No, you're probably saying, "How do we know what draw what high or what low price is going to reverse off of?" That's the thing. We do not know. I know I you're probably saying, "Well, what the [ __ ] is this video all about then?" It's being able to identify what highs and lows have the potential to fill those buy and sell orders to cause price to reverse. So again, this is like a perfect blueprint here. We know these highs and lows have super high confluence to be able to cause a reversal. These highs and lows have a super high confluence to cause a reversal. Equal highs and lows have a super high confluence to cause a reversal. Low resistance highs and lows have a super high confluence to cause a reversal. Also, we know what time those highs and lows have a high confluence to cause a reversal. So now we have a high probability of being able to mark out high probability highs and lows also at the right time to be able to identify and say okay a new session just opened. We push above a high confluence high or low or push above or below a high confluence high or low and I know that hey the market has a high probability of filling orders right now. But does that mean the market has to fill those orders and has to move in the direction that you want it to go in? No. So within every single day, that's why you guys will see me in my trade recaps marking out multiple highs and lows on every single session open. Why? Because I don't know the exact high that's going that's going to get swept. I don't know the exact low that's going to get swept to cause reversals. But I know that I can mark out all of these highs and lows. And I know that all of these are going to have a high probability of potentially getting orders filled. And that's all that we need because when we can mark out those high potential highs and lows, from there, we just sit back and we wait for those levels to get hit. We're not pressing buy and sell right when those levels get hit. We wait for our other confluences that show and tell us that orders have been filled via break of structure, via inverse fair value gap, via fair value gaps getting filled, equilibrium breaker blocks, order blocks. Okay? And then when we see those confluences, then we can make a high confidence decision saying that hey, we took out an area where there's a lot of draws on the or there's a lot of orders that have the potential to get filled. It's at a time that a lot of orders would want to get filled and I'm seeing confluences on a lower time frame off of this key level that are saying, "Hey, price is changing direction and this is probably a liquidity sweep." And that's when we enter. That is liquidity sweeps explained. I love and appreciate you guys. Again, if you guys want to learn about all those confluences I was just talking about, there's a link in the description for the free course. And yeah, I love you guys. I'll catch you guys in the next one. Hopefully you guys enjoyed. Peace. The [ __ ] out.