Imbalance and Liquidity Relationships

All right guys, welcome back. Now you

have understood HRC imbalances and HRC

trend. Now you have clarity about all of

these things. But there is one major

thing that you do not understand yet and

that particular thing is what is even

the relationship of imbalance and

liquidity. Now you know that when you

have a certain liquidity, let's say

daily liquidity, weekly liquidity, you

now know for a fact that you are to

merge it with a daily imbalance or

weekly imbalance as the case may be.

That is the same tier of liquidity

matches the same tier of imbalances.

Just like when we were kids when in

kindergarten or even in nursery school

that is something we used to do then

whereby they would draw a lion inside

some of our books. A lion will be drawn

some other animals can be drawn and then

their names also will be what will be

written on the same book. Then they will

ask you to match the correct name with

the correct animal in view or with the

correct object in view. That is your

hair lion. You start using your pencil

and drawing it straight to meet a lion.

That is exactly how the chart is meant

to be. In fact, that is how it is

designed to be and that is exactly is

what we are teaching you here. All

right. So basically here now you are

able to now merge imbalances from the

previous videos in this series. You can

now know that okay if I have a daily

liquidity I should merge it straight up

with a daily imbalance. You have a

weekly liquidity I should merge it

straight up with a weekly imbalance. But

one thing that remains is this is that

your imbalances and liquidity have some

relationships.

They have some relationship and that

relationship determine if your imbalance

area will be valid or if it will not be

valid. Also this particular relationship

help us know if an area is liquidity. If

an area is liquidity then why should it

still sponsor price for some kind of

movement? Yes, it is very possible to

have a range that is liquidity and it

will still sponsor price if such range

itself form the needed imbalance. All of

this is what I will discuss in the

video. But to understand this particular

video very well, I want to take you back

a little to one of my videos that I

released some months ago and that video

is the one where we are talking about

premium and discount in liquidities.

That particular video is very important

for the stage that we are in at the

moment because if you do not go back to

study that video diligently, this

particular new video, you will not

understand it completely. So I will link

that particular video to this particular

video. Trust me, it will worth every

single part of your time. All right?

because we are here to dissect in

various notion the relationship between

imbalances and liquidities and with that

let's go to the chart to actually see

how it is done.

>> All right guys welcome back. So

basically in the last class we spoke

about um opposition rule in line with um

higher time frame that is we we spoke

about

time frame is to be agreed as our major

signal when we have conflict signals.

All right.

>> Especially in each chain imbalances as

related to such area because in reality

a gap. All right. In reality once you

have

a gap at the open like this are open

and have a clear gap. A clear gap down

reality

introduces sellers across all time

frames. So let's now say the next day

or the next week as related to this also

now happen to be a clear gap down.

In that case,

this is clearly sellers.

All right? This right here is clearly

sellers.

And this also is clearly sellers

[snorts]

and you most likely will not find

any time frame where your opposition

rule will be applicable.

So that is one thing to know. So in case

of gaps, it's a clear decision or

direction in the market. Price [snorts]

gaps like when you see a full gap like

this, price gaps down.

Yes, if you're not sure, you can check

other time frames to see where there are

conclusions based on opposition rules or

most likely you will not get any. So

however also we now say that in such

example close open logic works

most importantly as what as imbalance

structure. So price has already cleared

the low then he cleared the high then

made the target.

All right then maybe even flip to buyer.

This buyer is useful in the future

majorly as imbalance

or

not majorly as something that can now

form let's say um the previous day like

we said here let's say is D minus and

since this now flip based on closing

range you now see this as D plus this

low will not be based on that effect no

[snorts] not necessary

So what it can be is imbalance

that is registering the intrinsic

closing range logic close open logic

within it just like the case of the

lower time frame retaining imbalance and

the higher time frame retaining

liquidity structure is what we are

saying because by time you go to higher

time frame you not see this flip and

clearly what you still see is sell and

higher time frame always win. So

automatically

this will fall back into the logic of it

being a lower time frame with more

frequency showing us um imbalance. Very

important. So that's pretty much the

first thing I want to highlight from

there. All right. Now having said that

I've already

established to you guys the fact that

a zone all right I've already

established to you guys the fact that a

zone or an imbalance majorly directly an

imbalance is to it retains identity

based on what even the lower time frame

says.

Okay. So

that's majorly something I want you to

take out from that particular point

which is why I reate on it. So moving on

in this particular class. So in this

particular class we are interested in

zones

and liquidities.

Now when it comes to zones and

liquidities

we have liquidity culture that is

imbalance. Now let me just say

imbalances and liquidities.

[snorts] So when it comes to zones and

liquidities or imbalances and

liquidities, one thing you get to

understand and you get to actually

realize is that

there are some rules, simple rules

though that govern it and makes it

technical.

So the first example I'll be sharing

here is let's say for example your

imbalance

you know uh then in the future

and then we have

this guy then here

in the future.

All right. And we have this guy.

So let's say for example, let's say this

is my zone, a daily zone, a daily buy

zone. That is buyer momentum seller

exhaustion zone. So where we have

passive as seller,

aggressor as buyer and of course this

other area is what truly should be

called true value rather because

at the end of equilibrium I once said

something about the fact that your

imbalance has extreme of value. All

right, mathematically and this point of

equilibrium just before buyers take

control is actually that extreme area

and it is called your fear value area.

So movement away from it to the right

side is what I think makes sense to

logically call fair value gap not just

randomly pick a three candles and whatn

not cuz that's by the way. So this is

your fair value and it must be tapped.

All right, that is your imbalance area,

the extreme

of value area. So let's say we have our

daily liquidity as usual.

And now

based on this, we have

this price coming here and tapping this.

Now look at this range to the forward of

your imbalance. It can be liquidity. It

can be monthly liquidity. It can be

weekly liquidity.

So far this particular guy is liquidity

in nature.

It cannot sponsor them more. It negates

the effect of this imbalance.

but with an exception.

And the only single exception that we

have here is if such liquidity here

[snorts]

is the most discounted true liquidity

within this range.

All right. So if it is the most

discounted

liquidity, okay, so if it is the most

discounted

liquidity

within that particular range, then we

can relatively recon with it that it can

sponsor a move that is the defense has

not been broken. It is still the defense

for the buy trend. Your most discounted

liquidity is the defense for your buy

trade. Your most premium liquidity is

the defense for your sell trade. And as

price is not ready to break that

defense,

such defense.

All right. [snorts] Such defense

is not meant to be rated as it can be a

liquidity culture around the zone that

practice will still use. But anything

other than that if it is not the most

premium

most discounted or whatever

then

it has to go before your buy can happen.

Now another case scenario is what if it

is no longer defense. So that is we have

um something like this.

Okay.

[snorts] In this particular case here,

all right,

in this particular case, so here in this

particular scenario, this particular low

here,

let's say, is the most discounted.

Most discounted

liquidity

within this range

as as before price break this high.

It remains valid as defense for the buy

trend inter

when price breaks out though it becomes

a trapped liquidity in that sense but at

the point of our valid zone

which can sponsor a move towards it

to clearly be broken. It is no longer

defense and it can be broken in that

case now while price still rallied up.

All right, because it is no longer the

defense

and therefore price can um can rally to

the upside.

All right. So and therefore price can

rally

to the upside. So it is very very

important to understand the case of

defense and whatnot which we will be

discussing more about in our next class.

For now we are so much interested in

liquidity.

Okay.

Cutting through a zone

being val or not. Like I said, straight

up

if you pick your zone

and liquidity has cut through it

and that liquidity is not the most

premium or the most discounted

then price is not seeking that liquidity

yet

has to go

is to invalidate that your supply

imbalance zone.

This is very important.

Okay.

To invalidate that particular supply

imbalance

zone.

Now

that is another exception.

Not an exception just understanding.

Let's say I have something like this.

also there is this

look at this

let's say this low here is liquidity

that is we have buyer seller interaction

and this particular

low right here

is liquidity.

Then I say this is a zone.

This guy right here, let's assume it to

be a zone.

This guy that is a zone

the fact that the old range because it

is this soal liquidity range that

creates it. Therefore

that zone is not limited by the own

liquidity

that actually created that is this range

created and this range is the liquidity

zone is formed backward behind like this

and you want to stretch it forward.

this whole by um this whole range of

liquidity becomes a liquidity culture

for that zone

but in this case they are not liquidity

culture because they are even the

creator of it

the range that started before this zone

is found. So what determines a liquidity

cut through for this particular range

is this one this one right here.

If this one here is not liquidity

then this zone for whatever purpose

is it's price meant to use it for will

be used for

for whatever purpose.

Okay, we take this liquidity fine

because this is not this is because this

is the the major thing that determine

what balances this or makes it remain

imbalanced.

All right

was formed there of this liquid. So

let's say this one too is liquidity and

then fine that zone becomes invalid

[snorts] and because agriculture but

liquidity itself

creating a zone [snorts]

does not

make the zone to be

um

automatically

not. I hope that makes sense. So that's

pretty much it. That right there is

pretty much it. So these are things

that I want to discuss with you guys in

this particular class. Just you getting

to understand liquidity

and zone

any

it is yearly if not seeking that

liquidity yet

that zone has to go. cannot hold price

except for SP exceptions. Number one is

the zone formed by the liquidity range

itself.

Okay. Then secondly

is that

the liquidity that go through it is it

the most premium or the most discounted

which is still creating defense

as at that point in time. All right.

That's right there is gold

trapped liquidity.

All right, we already know what traps

liquidity looks like, but we'll be

talking majorly about the zone of

activation of a trap liquidity. The zone

of activation of a trap liquidity

involves [snorts and clears throat] two

things. Okay, so it involve two things.

And

those two things is involved are things

that we would discuss

right about

uh now.

Okay.

So here let's look at this. So let's say

for example

uh we have

uh this particular

high

right here to get attract liquidity. You

could be say sessional liquidity

session liquidity and therefore this guy

is trapped within this range. All right.

So within this range it is trapped. So

let's say the range it is trapped within

is a daily range. So let's let's say

that is what it is trapped in. So

basically here um

it means two things. It means that any

trapped liquidity means two zones.

It zone.

it zone

but first it needs the bigger range

zone.

It needs the bigger range zone.

All right. So it need it zone and it

needs the bigger range zone. However,

for the bigger range zone there is a

clause. The VR zone

can have liquidity cultures.

Can have

liquidity

cost through it

while it zone that is the zone of the

liquidity that is in this case session.

Now

maintains normal zone rules.

maintains

all zone rules as discussed.

All major zone rules or imbalance rule

as discussed.

So it it maintains all zone rules or all

major rules as we exactly discussed that

is

it zone cannot be liquidity cannot have

liquidity cost trade except if such

range is formed by the liquidity range

itself as discussed in the rule of zone

or except if [snorts] the most premium

or discounted liquidity which is still

being defended is the one that cost

through zone but every other

No liquidity must cut through the zone

of the liquidity that is tracked in this

case session itself. But for the daily

liquidity can cut through it. So which

means that

here now let's say we have this to be

the sessional zone. First thing to mark

is always the bigger zone which is

daily. So is the daily zone. [snorts]

Decessional must be covered within the

daily in the case of tra liquidity

because that is what it means in the

first place. So if both means the

condition either liquidity cuts through

our daily zone

to the right side or it doesn't does not

matter. The major thing is is this a

daily buy zone where D plus

reach D minus that is the major thing

because we want to buy here. [snorts]

That's the major thing. If that

condition

is met and is true, the next thing is

now the sessional zone within the range

within the range. So which mean the

first thing is to find a bigger range.

So that is around here. You might have

even seen

sessional zone that is valid that is not

liquidity but it's not covered but but

not covered by a daily buyers momentum

sellers exhaustion zone that is where we

have buyers D plus raiding sellers. So

it might not be covered by such area.

It's not because it's not covered by

such area is the reason why that could

happen. But here we have the perfect

um case scenario

of that. So here our buy can then happen

peacefully to read our session. Now and

mind you the bigger range does not have

to be liquidity.

If it is not liquidity and price is not

seeking it, price has no reason

whatsoever

to read it. So price will only come for

the sessional. So which means the reason

why price bought is because of sessional

trapped within daily. So for you you

might be seeing some liquidity along the

way here along the way here maybe even

daily liquidity zone and all and you

might be wondering oh this is truly a

daily zone and you might be thinking

that price targeting no those are just

bonus along the way because the first

even through that daily zone but it was

look like ah but price still bought. No

price bought because of the session

price is targeting this session at all

right as the more premium liquidity

occurs to whatever you find around here

and as the one that has its zone trapped

in the bigger range zone. So that's

right there is the major picture and the

uh balance of what of liquidity traps

liquidity

and what's not. So and that's everything

about this particular

um class and with that being said I

believe I will see you guys on the

profitable side.

>> All right guys, here we are. I know by

now you guys are nothing but blown away.

You are triggered. A lot is happening in

your head that how on earth could this

have existed since and you just get to

know this well. We thank God for HRC and

here we have and I have been able to

actually deliver to you a lot of things

that could have been a major problem in

your career. But now here we are and

that has been given to you. So now there

is one more video to round off

everything about HRC for you and that is

HPO3. HO3 is Andre's power of three.

This is not your accumulation

manipulation and all that. No, H3 is the

counting of candles in multiple of

series, but we'll get that in the next

video. But the major usefulness of this

is to have sniper entries. I know

everyone love sniper entry and also have

a higher riskto-reward ratio. But let's

leave that for the next video. But for

now, we are done with this video and

I'll see you guys on the profit level

side.