LIQUIDITY IN THE FOREX MARKET. Complete guide on trading liQuiditY in tHe ForeX marKet. In this E-book, I will explain the following: Normal liquidity in the forex market. Asian liquidity session and how to know the first direction for liquidity grabs. Yes and Amen! I am here humble to present to you about liquidity in the forex market. I wasn’t planning on writing another E-book on liquidity but I got lots of requests concerning the issue of liquidity in the market. The other E-book I wrote was only explaining about order blocks, Wyckoff and the likes. Without further ado, let’s go straight to the contents of this book. WHat iS liQuiditY? Liquidity in Forex Trading Term used to describe a market where there are lots of buyers and sellers generating a great deal of volume. From what we have here, I would say liquidity is where there is a lot of money and most people are looking to take trades. If this type of situation happens then we know millions of people are targeting to make profit from. Then a lot of stop losses and entries will be at that liquidity zone. We can also say liquidity means a lot of stop losses and if there will be a lot of stop losses in a particular zone, then smart money will look for where there is a majority of stop losses, take them out before moving the initial direction. In this book I will be showing us how the market makers and smart money algorithms use order blocks to take out liquidity in this market. Once market takes out liquidity, it takes it out sharply and doesn’t want the majority to take or place trades once they are grabbing liquidity, that’s why you see aggressive moves or spikes while they are grabbing liquidity in the market and you are wondering if there was news in the market or the market just wanted to move like that. That’s Smart money for you! normal liQuiditY in tHe ForeX marKet. Like I’ve stated before, I will first talk about the normal liquidity in the market and we move to the Asian session liquidity. I will make this E-book short but detailed on how to trade liquidity grab. “IF YOU CANNOT SPOT THE LIQUIDITY, THEN YOU ARE THE LIQUIDITY” What’s the meaning of this? From what I just quoted, if you don’t know where the liquidity is in the forex market, you end up getting your stop losses hit due to the fact that you are placing trades where there is going to be a lot of volume that would take out your stop loss. HoW do We Spot liduiditY? We spot liquidity when we can see that there are obvious buyers and sellers in the market. How do we know where the obvious buyers and sellers are?? We spot the 1 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. buyers and sellers simply by identifying the obvious support and resistance areas in the market. ILLUSTRATION 1: IDENTIFYING POSSIBLE AREAS OF LIQUIDITY. This has said a lot already, I didn’t crop it to the current market price because I have fresh analysis and I don’t want to tamper with it. Firstly, looking at this we can see the support zone which is a zone for buyers to start taking long positions then we know there is volume at that zone. 2nd ly, we also know that if the market wants to grab liquidity, they do that with order blocks below the liquidity. We all know about the order blocks, if you don’t know about order blocks, just do well to chat me(Telegram and Whats-app contact available on last page of this book) or read my previous E-book on order blocks. The entry would be at the order block candle below the liquidity, imagine the sniper entry, they went up fast without looking back. If you don’t have this type of knowledge, you might also be trying to trade the support zone and unfortunately, you would be taken out because your SL will be exactly below the zone and you become the liquidity. Some people always ask if they can redefine the entry using the smaller time-frame on the m5, but I always tell my students to set the pending orders immediately they spot 2 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. the order block above or below the liquidity, because we know that once they grab liquidity, they might not look back to give entries for the smaller time-frames. ILLUSTRATION 2. The $ sign represents liquidity telling us that a zone is available for liquidity. Mere looking at this, we already know what happened, strong buyers zone and we surely know that market will surely take the new buyers out. The grab occurred so fast when it got to the order block below liquidity. NOTE: If you spot an order block in a liquidity zone, don’t trade the order block because we know the market will surely clear liquidity, trade the order block below the liquidity. I sent this very setup to my students and even to the free group and people milked. Why didn’t we trade the liquidity for sell since there is a zone above? First, according to my trading plan, once I catch a trade I like holding it till I get stopped out! Whereas I would have taken partials and allowed runners to run. Second reason, we didn’t take the sell because there is no order block above the liquidity to give us a sell entry. Where will TP be? I get this question every time because once I send signals to my students, I don’t send TP. This is because I like holding and don’t care about TP zones. But the most reasonable area for setting TP on any trade taken should be above another liquidity as shown in illustration 2, because we know they might want to grab liquidity on that zone too. What’s most important is the SL and trailing stops that’s why we use 3 - 5 pips SL in the mentorship group when I send signals, maximum of 10 pips due to spread etc. 3 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 3A Now we are used to how the structure of liquidity grab looks like, from this image we have two order blocks that are below the liquidity area. The order block to take this type of trade is the most recent order block because that's the most recent low of the market as we all know that order blocks are always formed at the lows of the market for an uptrend and formed at the high of the market for a downtrend. TP will always be above another liquidity area. These types of trades are clean and easy to trade without the use of any indicators. Trading with liquidity grabs: the SL should always be 10 pips because the market always spikes while trying to take out the liquidity. I do send signals with 5 pips like I said earlier because we use the Wyckoff liquidity to enter trades in the mentor ship group. Wyckoff is more accurate and gives minimal stop losses entries on wyckoff are found after the market has grabbed liquidity. I will not be explaining wyckoff liquidity in this book. ILLUSTRATION 3 could have confused you because of the two order blocks that were formed below the liquidity zone but never forget that when you are looking for entries, your orders should be placed on the most recent order block that has formed. 4 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 3B. This is the same thing like I have explained above earlier. Market will always repeat the same thing over and over again. The liquidity was formed while resistance was created and the entry would be exactly at an order block right above the liquidity. Then TP will be after the liquidity grab when you have seen enough profit. What confirmed this trade was the impulsive move after the HIGH IMPACT USD NEWS that came up around 1:30pm yesterday. The news created imbalance and volatility, and we all know that market would surely fill imbalances whenever there is an order block above or below the imbalance area that was the confluence for taking this trade and in the process of mitigating the order block, market had created early resistance that created liquidity which would surely be taken out in the future. Now the market is moving to the places of liquidity again to take out all the buyers and sellers in the market. That’s the work of smart money algorithm. The composite man tries to trap all the sellers and buyers in the market, luring them to place trades in specific areas of liquidity allowing them to be trapped and take them out as soon as there is enough volume and liquidity to take out on them. Am not saying retail trading is bad but as a retail trader you have to consider many factors before taking a trade, like the market structure, confluence, weekly and daily trend, not just support and resistance because support and resistance areas are places of volume the composite man uses to take out traders. We have the advanced support and resistance which are not the normal types of support and resistance zones. That’s why I want to add the market fluidity course to my mentorship for my students who still don’t have the full understanding of smart money concepts yet. 5 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 4A When you do the same thing over and over again, you keep seeing the same structure over and over again. I didn’t label this one because I want us to spot everything by ourselves, just like the previous illustrations, they repeat the same things and they are different pairs. Spot the areas of liquidity and set your TP above the next liquidity and enjoy the sniper entry. We would have taken the sell here but there was no valid order block above to give sell entries. Lets take a look at the order blocks at the high of the liquidity above. Looking at this trade, the order wont be placed because it has been mitigated by the candle beside it, and we ignore the liquidity grab as we have caught the BUY move. 6 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 4B. We caught a nice clean trade today in the mentorship group and signal was also sent, the market was at a ranging zone of liquidity while we woke up to profit this morning. Orders were set above the liquidity zone on the order block for sells stop losses was 5 pips and we didn’t get stopped out. More confirmations got in because we also spotted a wyckoff schematics which acted as confluence to our trading opportunity. Beautiful sniper trade. TP will be below the next liquidity 7 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. liQuiditY in tHe aSian SeSSion. In this phase, I will explain how to trade liquidity in the Asian session. Asian session is the most less traded session in the forex market. But with the ideology I have for you guys y’all can start trading the Asian liquidity immediately after the Asian session. Asian session ranges most of the time because there isn’t much volume traded unlike the London and New York sessions. If the market gives us a range then we surely know that liquidity is forming above and below the range, as usual we look for order block candles that would help us take out the liquidity of the range. NOTE: When you spot a range in the Asian session just know that the market would take out the highs and lows of that Asian session range, with the use of order blocks, you would grab the liquidity and also follow the market as it takes out the highs and lows of the range. Highs of the range are the highest points of the range which are the resistance that sellers are looking into, while the lows of the range are the lowest points of the Asian range that buyers target. This is also very simple because its like the previous lesson and illustrations we have above for the normal liquidity I explained above. ILLUSTRATION 5 Very nice and clean setup we’ve got up here, we can see how the market ranged during the Asian session, we can use the session break tool to identify the open of the Asian session on the trading view. Smart money used the order block on the m15 time to take out the highs and lows of the Asian liquidity. This often happens when the Asian session ranges and there is an order block above or below the session, these types of trades are for day trading as you will catch the exact movement of the market before the London and New York sessions. Its also sniper entry, tell me why I should still take trades of 10 pips SL. 8 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. NOTE: 1. No range, no trade. 2. Order blocks can be found on lower time-frames like m5 and m15. Those are the time-frames I use to get entry on Asian session. ILLUSTRATION 6: Taking a look at this chart for a case study, we can see how market used the order block to grab the liquidity of the Asian session it was a clean nice trade, the TP would be above the high of the Asian range because we know that the market would take out the highs after it has taken out the lows of the range. Am also expecting the same move to happen again once I spot that the market has ranged during the Asian session, below the zone I marked out, at illustration 7. ILLUSTRATION 7. 9 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. From ILLUSTRATION 7 above, am waiting for the market to open, once I see a market range during the market open, I would set a buy limit order on the entry because there is an order block at that zone which am expecting to take out the Asian liquidity. With this daily you can achieve consistency, no need to look for holy grail strategy because there is none, all you need is just constant practice and research as I always teach my students. Like I said before most of the times the market doesn’t range, but when you spot an Asian range then look for an order block below or above the range to take out the Asian liquidity. No range no entry. Sometimes also you will see an asian range but there wont be order block below or above the range, the best thing to do at that time is to stay away from looking for entries because you don’t know the point which market would reach before taking out the highs and lows for the Asian session. ILLUSTRATION 8. From what we can see above it was still the same process rinse and repeat. Asian range, entry would be the order block above the range then you set the order on the opening of the order block candle as always. Now also note that don’t use 5 pips SL when you are trading to grab the normal market liquidity or the Asian range liquidity. Its only advisable to use 5 pips SL when you are trading the wyckoff liquidity because on wyckoff we are entering after the impulsive move then we are more precise that the market would take pout the unfilled orders created in the process of the wyckoff accumulation or distribution and with that confirmation we are more precise about the market move and use a very small SL to capitalize on the move. For taking trades with the Asian session range and order blocks its best to use 10 pips SL so that you wont get stopped out unnecessarily. 10 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. Imagine you used 5 pips SL in ILLUSTRATION 8 above, you would have gotten stopped out for sure and market would have moved in your favour, so don’t always be greedy by chasing smallest SL. Also, the SL should always be above the order block zone. ILLUSTRATION 9. Same rule no hard rule, no stress, the Asian range surely takes out the highs and lows. This one mitigated the order block but it took long to reach there but after the mitigation, it moved so hard for almost 4 days, that’s something about the Asian session grabs, once you can grab the Asian session liquidity, that’s where the market would head throughout the London and Newyork sessions. Then you just need to trail stop losses and let the market move the way it wants. This strategy is enough to set your trading journey. The reason I don’t like this setup is because it doesn’t happen everyday and as traders we want to trade everyday, that’s why I use the wyckoff in confluence with order blocks to get trades everyday. 5 trades for the week and am profitable. Remember this strategy doesn’t work on volatility index because there is no Asian session in the volatility index market. I would stop at ILLUSTRATION 14 for this E-book I don’t like when contents are too much, but when we are short and valuable that’s what is the main joy. The best way to achieve consistency in this market is to repeat the same thing over and over again changing strategies will take you no where, but repeating the same 11 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. thing will let you know the pros and cons and you wont always enter the market anyhow ILLUSTRATION 10. This strategy works on all currency pairs, though I haven’t used it on NASDAQ and gold, its left to you to do research and make a lot of back-tests, like I always tell my students. Put in the extra work, do a lot of research I repeat a lot of research. ILLUSTRATION 11. Looking at this the market didn’t take out the Asian liquidity here and we missed the precious entry, it just kept going down that’s why I said the setup doesn’t take place every time. 12 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 12. From the illustration above we can also see that the market didn’t wait to take out the lows of the range but it did well to take out the highs of the range. This does not happen most of the time and I guess because today is Monday it just went up after the Asian range. I was waiting for this in ILLUSTRATION 7. HOW DO I KNOW IF THE MARKET WOULD TAKE OUT THE HIHGS FIRST OR TAKE OUT THE LOWS FIRST?? The best way to know the first direction of clearing the liquidity is when there is an Order block below or above the lows and highs. If you can spot an order block above the range, then you should know that the market would surely take out the highs first with the use of Order block before it takes out the low. If you can spot an order block below the range, then you should know that the market would surely take out the lows with the use of Order block before it takes out the highs, so simple. So when you spot an Asian range, don’t get confused as to knowing which direction it would first go, with the use of Order blocks below or above the range then you should know that market would surely mitigate the order block as for grabbing liquidity. 13 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 13a. This pair was sent this morning to my mentorship group with SL and TP. I spotted the Asian range and there was an order block below that was how I knew the direction for the BUY movement. 14 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 13b. This is the running trade and the sniper entry with 5 pips SL. TP will be above liquidity. 15 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. ILLUSTRATION 14. When you trade the same thing over and over again, you tend to see the same thing as well. This trade is the same I have been explaining since. Order block trade to take out the high of the Asian liquidity while TP will be below the next liquidity or support zone. Clearly I didn’t take the trade. At this point I would say “peace guys, am out”!!! FOR THOSE THAT WANT TO JOIN MY MENTORSHIP, THIS IS WHAT I OFFER: 100$ LIFETIME MENTORSHIP THE MAIN STRATEGY I MENTOR ON IS WYCKOFF SCHEMATICS AND ORDER BLOCK. In the mentorship group I deal with the following based on the strategies: First of all you will be sent video packs including 15 videos of technical analysis and 12 recorded videos on wyckoff and order block confluence trading for better understanding. Analysis of trades taken by me daily. Explanation of analysis sent. 2 to 3 daily signals. Signals on Fundamentals/News before they come. More knowledge on technical analysis and Fundamental/News trading. Monthly live classes via zoom or google meet to explain how and why i take trades. 2 to 3 signals on crypto for binance. Payment is by Bank transfer or Crypto 16 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. Market Fluidity course would be taught by January 2022. You would be added to a channel and group of more than active 45 VIP students that share trades. Chat me to join my free group where I send free analysis for gaining little knowledge. MY SIGNAL SERVICES IS JUST 40$ MONTHLY BUT NO MENTORSHIP, JUST DAILY SIGNALS FOR 1 MONTH, 75$ FOR TWO MONTHS.\ CONTACT ME: WHATSAPP: https://wa.me/+2348076757051 CALLS: 08076757051 OR +2348076757051 TELEGRAM CONTACT: https://t.me/tradewithworldbank_twb FREE GROUP: https://t.me/joinchat/ckCHFc1eNbIzNzA0 STUDENTS RESULTS (#STUDENTS WHO LISTEN) 17 TRADEWITHWORLDBANK LIQUIDITY IN THE FOREX MARKET. RESULTS FROM THE FREE GROUP### 18 TRADEWITHWORLDBANK