LIQUIDITY: Premium and Discount
FULL TRANSCRIPT
All right guys, um
majorly in the
last
session
that is in the last um
so majorly in the last class. Okay.
um
for the liquidity class a minute.
So majorly in the last class for the
liquidity class
we spoke about
we spoke about the internal liquidity.
What makes it internal?
I emphasized on the fact that what makes
it internal is not because it is
internal. In quote, what makes it
internal
is
the fact that it is on found on the
aggressor trend that is the present
trend.
uh we spoke about
some differences between
internal and external liquidity and I
also made a correction
about external emphasizing on the fact
that the
interactions of the external
with a swing guy or low
that is liquidity is
temporary. temporary until price
in temporary sense that once price
crosses to the next high liquidity or
low liquidity
um
that particular first one becomes
something that that whatever happens
there maybe an absorption was starting
there then it is no longer
um of reference.
All right, that is majorly what I
mentioned.
So
now the next thing we want to look at
is
of course
to look at um the other two part of
things which are the premium and
discount and trapped liquidity. So let's
start with the premium and the discount.
liquidity
and discount.
All right. So for the premium or
discount liquidity,
the first thing you want to understand
is that anything called premium or
discount is not as people see it. Any
call premium or discount
is relative.
That is the first
major characteristics
of it is relative. So what do I mean by
that?
So what I mean by that is that
a minute I don't know
[Music]
So anything called premium
or discount.
So anything premium or discount is uh
relative.
So what do we mean by
being relative?
Being relative in the sense that
let's say that and of course talking
about premium or discount
this is only
in reference
to internal liquidity.
Same thing with traps liquidity. So all
of this is only in reference to internal
liquidity.
Your external liquidity there is nothing
like premium or discount there because
external is external. That is it. All
right. So for example
um
this low right here
for example this low right here on the
chart
is not premium or discount to any low
per say it is rated it is rated there is
really no other low to to it or whatever
right so
it's only the internal that is the highs
now
those are the ones that we can reference
to all right based on the interactions
that happen here. So those are the ones
we are relatively
talking about. Okay. So please do well
to note that. Now going back to what we
have.
Okay.
So, anything premium or discount is
relative in the sense that
say I have this that is I have this uh a
low
high
lower low
high
lower low again. And then um
let me make this a little bit more
structural. So let's say I have
something like this.
All right. And then we have this
in this trend.
So let's say this is the beginning of
the sell trend. The very beginning of
the cell trend is this I or this point
label point A like that is the absolute
origin of this cell trend from anywhere
you are viewing it.
And let's assume that based on the
interaction here,
let's say there is absorption here,
absorption leads to formation of
liquidity. So making this to be
liquidity.
Let's assume that here no absorption.
No
absorption.
So not liquidity
not liquidity
and then here there is absorption.
So we have liquidity.
Okay. Perfect. Sorry there is
absorption.
absorption
then liquidity.
All right, great.
Now
this is not liquidity. So I
intentionally put it so that we can
understand that not every swing guy is
liquidity. Neither is it every swing low
that is liquidity.
In this sell trend, the most premium
liquidity
relatively
is this this very first one that was
formed in relation to the other one
that is let's now say this one here
let's say this one is liquidity that is
now let me make this to also be
liquidity.
So let's say this guy here is liquidity.
This in rank will be most premium
in rank will be most premium.
This in rank if it is liquidity will be
less premium.
Most premium. Less. Less premium.
Less premium.
And this right here will be least
premium.
least premium
liquidity.
So this will be the most premium,
less premium,
least premium.
Now what makes this matter to us? Why is
this important?
We will get to understand this better
when we are dealing with uh in our next
session of practical that is zones
practical where we'll be
having practicals on
uh zones.
Okay, that is our imbalance,
exhaustion imbalance and momentum
imbalance. But we need to speak about
those here so that we can understand
because based on nature of liquidity is
what determine the zone of activation
that will cause reversal to it. That is
what is the effect of this
relative assignment? Why do we assign
most premium, less premium, least
premium to each of these
so that we can know as a rule that
no matter the nature
of this liquidity,
it is the one on top of the chain and it
is the one that controls every other
liquidity lower. And this is of course
logical and this is exactly how life
works.
The ones on the topmost part of the
chain,
the government
actually
determines
what happens irrespective
of these guys. So maybe the ones not in
government that are relatively rich, we
say that is less premium
and the poor least premium.
Okay.
If
government
says
or wants to drive a liquidity, wants to
drive price towards themsel.
that is
government finds
interest in this zone based on the
nature of government.
So and the reason why you can't a very
young person can be
for example the most premium
let's say the president now can be 50
years old
and the least premium in this case can
be 90 years old.
So it's not by age that is my point that
is it doesn't matter if the most premium
is session in nature that is the highest
volume relationship is sessional formed
with between the same day
it doesn't matter
let's now say the least premium here
is monthly relationship
if Price find a valid sessional
valid
sessional
exhaustion
imbalance
that is where sessional buyers
took over from sessional sellers
without making such areas of the
liquidity.
If price finds a valid sessional
exhaustion imbalance here that is the
liquidity here let's say it is sessional
the liquidity here let's say it is
daily.
Let's even say the liquidity here is
even yearly that big let's say is the
oldest biggest in size just big for
nothing
and such that yearly zone is still far
far zone is still far far far below.
If price find your sessional
valid sessional exhaustion imbalance
here,
buys will trigger
and will raid all of these guys
all the way up. Even though price maybe
price has not gotten to daily valid
exhaustion imbalance, price has not
gotten to yearly value exhaustion
imbalance. What controls the chain is
the one that is formed first with
respect to the other one. That is formed
first does not necessarily mean formed
first on here. Formed first with respect
to the other one. For example, let me
reverse
the engineering of what I just
put here.
So let's say for example
here we find uh we have daily
and here we have uh sessional
and here we have uh monthly
and price find sessional
Valid sessional
valid sessional
exhaustion
imbalance. Exhaustion imbalance is what
reverses price not momentum imbalance.
Momentum imbalance is for continuation.
Anything called reversal that is what
you anticipating here is reversal of
bearish trend for price to buy to your
liquidity. So that is a reversal
anticipation not a continuation
anticipation. So s the reason for the
word exhaustion
very important that is the major
difference.
So valid sessional imbalance but price
has not gotten to let's say lower here
is where we have uh
valid
daily
imbalance and this one is monthly. Let's
say lower lower is where we find we see
monthly valid monthly
price will use our valid sessional
imbalance
and it will use it and use it to buy to
raid the sessional even though price has
not gotten to the monthly. So that's why
we say it is relative.
This is the relativity of premium
or discount relationship.
So price here will read
and come and take the session but will
not take the daily because daily is more
premium than the sessional
liquidity in this range
except if there is more another more
premium thing above the daily that is
driving price maybe another liquidity
above the daily whereby price is now
ready and price has already touched the
value exhaustion imbalance of that one
as well. But so far this is what is on
the chain.
So far this is what is on the chain.
Price will come even though monthly
exertion imbalance has not been tapped.
The session will sponsor price towards
itself because it is the bigger person.
So let's say yes the the the the least
premium here let's say is the gate man
and the less premium here is the rich
person that employ the gate man. This
guy can easily drive without needing
that he doesn't need the validation of
the gates man to make decision to drive
price towards itself.
Apologies for the word gate man and not
but that is how the word is. The word is
not fear
that is the reality.
The word exist on imbalance. That is
just the reality of life.
Either we like it or not, no matter how
you try,
the higher percentage will always be
poor.
That is it. And that is why you don't
want to lazy around and because you've
tried something for few months, year and
you give up.
Good luck to you. But the world does not
care. The war continues either way
sessional.
So it will drive it.
It will drive it.
And then price after we have maybe
external absorption uh or trend answer
or full absorption
price will continue.
The only singular thing,
all right,
that can make price in this scenario I
just stated, the only singular thing
that can make price to raid
more premium liquidity
that can make price to read. It
is
based on the most premium liquidity at
this buy side as well
because that is also important for this
reversal to occur.
Let's say the most discount now this is
now discount. So let me start drawing it
into each other already. The most
discounted liquidity here let's say is
monthly. Now in this case monthly is now
the most discounted in this case
and
let's say here we have daily and all for
a continuation of sell to happen. Yes we
know that price want to continue
selling. Maybe based on your analysis
you know that price want to continue
selling. That's fine. We we we all agree
on that.
But for continuation of sell to of sell
to happen means a reversal on buyers.
Both of them
always coexist.
A continuation does not happen without a
reversal. A reversal does not happen
without a continuation.
Continuation of buyers is a reversal on
seller. Continuation of a buy trend is a
reversal or sell trend.
continuation of sell trend is a reversal
on buy trend.
So the only case scenario
when you can have price yes we know that
sessional exhaustion imbalance is what
sponsored this move in the first place
and we know that this particular high is
to be rated surely
one more thing that can make price to
extend further
within the range without necessarily
eating the daily exhaustion imbalance
zone.
Is
if when the buy trend that is the
pullback now which is now a buy trend.
If
the most discounted liquidity
there has not found its own exhaustion
imbalance zone
that you say for example this is monthly
as the most discounted. Most discounted
means most discounted. The first
liquidity, true liquidity that was
formed based on HRC, based on absorption
here, maybe M plus
and M minus.
Yes, reversal will happen within a
monthly momentum. Sorry, reversal will
happen within momentum imbalance area.
We'll get get to see more on that but we
need to understand this ideally from the
liquidity class.
But
based on this right here, this
particular monthly right here,
let's say the monthly valid exertion
imbalance is somewhere here.
So this is where we have um buyers
taking over kind of inside this range.
Buyers taking over and then sellers
taking over from them. Buyers
exhaustion, sellers momentum without it
being liquidity
or that is inside the range because it's
always a range. You can have multiple
monthly candles here. Maybe one base,
two base, three bases
based on normal supply and demand.
So the most discounted is monthly.
This guy that will make it travel
further and further and further and
further. Remember when I was discussing
about monthly
um uh when I was discussing about
momentum absorption in our last
practical class on liquidity and
exhaustion absorption. I said momentum
assumption can be due to two things.
Number one,
if that thing has not found
the liquidity it is the what will
reverse it monthly is the most
discounted here. So it determines
the whole overall reversal on buyers
which is the pullback and also the
continuation for sellers in that sense.
So this will make price travel further.
This is the only case scenario because
the most discounted liquidity here has
not found
the exhaustion imbalance zone that will
sponsor reversal on buyers. So buyers
will still have momentum
the pullback but we know that it is not
to reverse on all the session. We know
that we are still bearish.
In this case, this can happen. A valid
sectional exhaustion imbalance, yes, is
the reason why we buy in the first
place.
But the reason why we might not even
take all our profit from here on by is
if we see the type of liquidity price
engineered first when that pullback
started
and we find it exhaustion imbalance, we
see that yes, it is still further away.
So we can just take maybe some partials
here but you know you shouldn't be
selling yet even though this is the most
premium among the three liquidity maybe
there is another more premium so that
means okay let's say this is more
premium our most premium is still here
right here
so basically
this can make price travel further why
because it is seeking
the zone
and I will site an example for you. I
play law tennis
and in law tennis
one major thing to note is that
what you are focusing on
is majorly the ball or even your normal
table tennis. Let's just relate it to
the normal table tennis.
It is that tennis ball that you your
focus is on.
Now that tennis ball
and also referential to
you eating back the ball once it is
played towards you determines your
position at every point in time.
You will have to shift your where. So
which means that your wear is shifting
at every point in time.
Where you find value at every point in
time is dependent
on where the opponent
place the bottle was.
For example, in long tennis when you put
you are on your set mode at the middle
and you handle your racket centered at
the middle focused.
If the ball is launched towards
far end of you that is far end of the
court
as the ball is coming you have to
predict
where it will most likely land. And when
you predict correctly where it will most
likely land and you see that it will
land somewhere very close to you that
will determine your wear. That is where
you will have to move at that point in
time. That is you have to move backward
so that you will be able to reciprocate
that energy or to be able to eat the
ball effectively.
If not, you will miss the ball after the
bounce.
That is just the reality. Or you will
eat the ball wrongly. That is, you might
now eat the ball in a way that it won't
eat the table at the opposite side at
all.
I believe everyone understand the
picture here.
That's exactly how we where works.
where price
will find value to sell
is not
dependent
on the cell trend.
That is why I use that long tennis or
table tennis example
action reaction
equal but opposite
it is not dependent on the cell trend.
No where
You will have the cell continuation
that is where sellers will take control
again. It's not dependent. No,
it is dependent on buyer. Now this buyer
now is your opponent. It's dependent on
where your buyer shoots the ball
towards.
That is where we determine where you
sellers will find value. Does this make
sense to you? Do you understand?
Do you understand now?
That is you can't just look at this
and just pick a zone yet that okay this
particular zone is where I will put my
cell. That is why everything
fundamentally is wrong with how most
people trade.
Yes. Even though some people find edge,
it works sometimes and the lives.
But in reality, you sincerely
do not know the other block to pick for
a continued sell or your so-called area
of interest supports to peak yet. No,
you don't know it until buyers engineer
their almost discounted liquidity
because the continuation of sellers for
sellers to continue still using that
pennise example
for sellers to continue that is for you
to be able to continue that is to eat
the ball back
is dependent on where your opponent
which is Now buyer
for you which is seller to be able to
eat that ball
back
towards the initial direction it is
coming from is dependent on where your
buyer shoot towards.
So how do you know where your buyers
shoot towards
so that you will know where to wait for
them? The most discounted liquidity.
The most discounted liquidity
on buyers. So premium
and discount does not happen
independently like people do using just
Fibonacci and all. Premium and discount
is deeper than that.
And this is exactly what I'm teaching
you at its core.
At its what? At its core.
At its core.
Because even while you are selling,
so the most liquidity is what determines
the zone you go ahead to wait for. You
have to let it form first.
If not you sincerely do not know and I'm
telling you for a fact you might think
you know but you don't know where price
will continue your sell because your
seller continuation is solely dependent
on the aggressor where passive will get
activated is dependent on the aggressor
interest
aggressor drives price in in immediate
effect
passive adjusts their sins passive are
like at times trapped liquidity that
need to be activated. There are a lot of
passive orders around the range. The
question is which one will be will price
go for? What gives you the clue? The
most discounted liquidity.
So if the most council liquidity is
monthly
that means that is where buyers can
agree with sellers.
That is where both of you find value.
That is why it is also called fair value
area. So your fair value area is never a
permanent area.
Your order block is never just an order
block you just pick randomly.
Your fair value area just even forget
about calling it even other block. Your
value area where buyers and sellers find
value for reversal
that area is determined by both of them.
In case of you want to sell for
continuation, sellers continuation
is dependent on buyers reversal.
Where will buyers agree to reverse? That
is
exhaustion imbalance zone
based on buyers. So buyers will engineer
their liquidity that yes we engineer
monthly liquidity
as our most discounted liquidity that is
the do you know what discount even means
that is the last price we are willing to
sell users. This is basic market
structure
that most of you did not learn. This is
what should even be called market
structure if you really want to
interpret structure very well.
where we find value.
This is our most discounted price is
this this liquid that is engineered. The
price there let's say is 1.0712.
That low is what will determine that is
the most discounted.
If there are some value that can take
some
less
uh discount or is it more discount now
yes it will have to be more discount now
because it is in reverse right you
English people here I believe it
shouldn't be uh most premium it should
be more discount right
or whatever you understand what I mean
so such liquidity can be taken when
those ones but for the most discounted
liquidity
it own zone has to be hit
before buyers can agree that yes we are
done we have now sold everything because
that is their most discounted price now
that so where would they sell it they
will sell it at where there is
sellers for it
That is buyers will buy and close all
their deal where there is what
exhaustion imbalance
to replicate that particular effect
monthly exhaustion imbalance zone. So
which means even though the buy starts
what gives you the what gave you the
hint for the buy is this sessional
liquidity you saw here and you saw that
price is at a valid sessional imbalance
zone
when this is engineered when the ball is
eat by your opponent
my brother
that is that will cause even this more
premium liquidity which is more premium
than this to be raided along the Okay.
So, it is more like bonus for price
along the way because buyers do not find
value there.
Where buyers find will find value is
based on their most discounted
liquidity.
That is where they find value.
This is the concept of premium and
discount and that is where continuation
for sale will happen. Mini reversal on
buy will happen.
Simple,
logical
and nothing but the truth.
And this is everything about premium or
discount.
This is their relationship.
Then to the last one before I quickly go
to the chart and then we round off
trapped liquidity.
This is very direct. I've already
mentioned yesterday that you can only
have trapped liquidity
within
internal
liquidity range. You cannot have
liquidity externally because anything
externally is what is temporary
trapped liquidity.
Tra liquidity is very simple and direct.
What does he say? He says that
if I have this
whereby
this guy here let's say it is a
sessional liquidity
that is based on the relationship of
what happens here
what happened there. So it is a
sessional liquidity
right
but
let's say this low was formed from the
previous week
and the aggressor that is the move that
came to read it
formed in a new week aggressor
is formed in a new week.
The rule says whatever makes your
sessional liquidity to be trapped inside
this range maybe because it didn't find
value here that is there was no valid
sessional
exhaustion imbalance
that could reverse
this guy.
Either this
based on interaction between this
passive and aggressor either it makes
this to be liquidity
or it makes it or it is not liquidity.
It doesn't matter either this is
liquidity or it is not liquidity.
What will trigger this reversal is no
longer a sessional liquidity uh a
sessional valid imbalance zone
exhaustion imbalance zone. What will
trigger this right now will be a weekly
exhaustion
imbalance zone.
So in nutshell this liquidity is trapped
within this range that is in that case
you can't see sessional liquidity here
sessional valid imbalance zone here
and you are now trying to buy there when
this is already trapped in this range.
It is now trapped within this high and
this low.
Power does not belong to the sessions
again. They are now trapped within that
is they are trapped within weekly
participants range.
They are still liquidity
but they need weekly volume to get
trigger.
That's their reality now. They are
trapped there. They are not independent
again. The price has broken out of a
weekly range.
They are no longer in control.
So this session liquidity cannot get
triggered by a sessional imbalance zone
again. No, they are trapped within a
weekly volume. Weekly volume has now
mixed with them. They are not
independent anymore. Look at it now.
Because this eye here is is cover is
covers everything within that range.
So every liquidity here either maybe
after session is formed even daily is
still formed. Every liquidity there
every lower liquidity there is trapped
and of course is only lower liquidity
that can get trapped in a higher
liquidity. Obviously that one is just a
straight common sense. A higher
liquidity can never get trapped here.
Let's say monthly a new month open year
or something. Automatically a new month
open here. Automatically this low two
was formed from a previous month. Now
isn't it? This low is was formed from a
previous month. So automatically that
logically
is simple and direct, right? Because
whatever makes a new month to open year
such that monthly liquidity is here
automatically this particular low was
formed from a previous month or even a
previous year automatically. So it is
only a lower
liquidity
range in terms of sessional or daily
that can be trapped within a weekly
range obviously.
So basically where price will find
balance will be weekly exhaustion
imbalance zone
where buyers took over from seller that
sellers exhaustion buyers momentum
and then that is what will now so if
this for example
if it is not if this is not liquidity
and price is not seeking it no problem
but the major thing is there will be buy
from that place and your target is
decessional liquidity
that's your target
okay so that is the major thing to note
there so your weekly exhaustion
imbalance zone is what will trigger
the buy towards that tra liquidity not
an ordinary sessional imbalance balance
zone except if the session imbalance
zone of course is covered by weekly
exhaustion imbalance zone. So that's
pretty much about that for trapped
liquidity.
Okay. So
from our
last example
of um
from our last example of
signal
we
saw extensively this particular same
range. We saw extensively
that uh Yeah, you are welcome. We saw
extensively
that from our last
uh example,
we saw extensively
that um
Tuesday
which is uh here we saw that it is
buyers in terms of daily participants
and we also saw extensively that Monday
is sellers.
So here
the most premium liquidity price
engineered here was daily which was
between Tuesday and Monday. So Tuesday
was
D.
So Tuesday was uh D
on Monday rather which was the passive.
Let me go to a lower time frame so that
we can see that range clearly. So Monday
which was the passive this high year was
D minus by all reason and all virtue
that is why I'm using this exact example
because we have already found
it isn't so so D minus and Tuesday we
saw by all virtue of um of validation
that it was D plus
so the most discounted liquidity
that was initiated by buyers
along the way is daily liquidity. So
this is DL daily liquidity
and
this guy here is a sessional liquidity.
Yes, when we get to sessional this I
will come and validate it for you again.
This guy is a sessional liquidity
but
price did not read it because
a sessional zone was mitigated. No, it
wasn't because a sessional zone is
sponsoring Dubai.
That's not why price raed it
at all. That's not the reason.
price it because
the only place price will sell from that
is price did not rate this because it is
liquidity. I don't even think this one
is liquidity at all. This eye I don't
even think it is liquidity at all. Same
with this eye here. Price did not rate
them because they are liquidity.
Price raed them because price was
seeking balance.
It was seeking the exhaustion imbalance
zone so that there can be agreement
which is balance
for reversal on buyers to happen and
continuation of sellers to occur
and where did price go again by virtue
of all understanding that we had we knew
that Friday
was D plus as registered by us in the
previous signal practical session
and Monday right from here we knew that
it was sellers
and where is ex what is meaning of
exhaustion for sellers if you want to
sell what are you looking for you are
looking for where sellers
took control from buyers in nature not
by buying candles or selling candles.
So we know that Friday,
Monday sellers took control here and
they raided
everywhere down. They raided all of
Friday.
Thursday was sellers in nature by virtue
of confirmation. You can go and do that
one practically yourself. It was sellers
in nature. Thursday was sellers in
nature.
So which means that if Thursday was
sellers in nature up to
uh
up to okay on 1 hour time frame where we
confirmed this I think this was the
closing candle high. So from here we
significantly saw that buyers took
control from exactly this straight line.
This was the closing candle high that
was taken. Every other thing here was
inside bar. So from this eye here
as you can see buyers were there. So up
to that eye
this was the last major swing high that
was formed on Thursday and I said
Thursday everything is sellers by
nature.
So up to that particular high buyers did
not take control. It is until that high
was rated that we significantly can say
that buyers took control. So Friday D
plus ultra and what is
bias exhaustion? What we are looking for
is bias exhaustion
zone. We will still revisit this
particular example by the time in the
next practical class. By the time we are
dealing with zones practical class
buyers exhaustion
very important sellers momentum
you know there are some terminologies
that are used in SMC trading that are
actually true but just not
valid extensively because they do not
understand participants and That's why
HRC you see on my profile on Twitter,
I've changed it to the science of market
participants because that's what makes
the difference. When they want to talk
about bearish order block, what would
they say? They will say the last buy
candle before the sell, isn't it? Is
that not bearish order block? They say
bearish order block is the last buy
candle before what?
before is sell
and you say bullish
order block is the last
bullish candle is the last bearish
candle before they buy is that so
for those that have traded SMC here
before almost all of you have traded SMC
I don't know why you guys are shy now
eh why are you shy
bullish order blog is the last sell
candle before the buy. Hi, I want
everyone to answer.
Bearish other block is the last buy
candle before the sell. Isn't that true?
Exactly.
But the problem with that is that you
are using just your eyes to pick
candles. What about situation where you
can't even see the last buy candle
before the sell? You don't even know is
it on daily time frame that you should
be looking for that or on on 4hour time
frame. So look at how the science of
market participants help us separate all
these things and make it all objective.
That's we are not just even looking for
any random order block like 4hour order
block and all we are looking for in in
quotes now we are looking for daily
order block because we know it is based
on daily participants engineered
liquidity.
All right. But we don't even need to now
go to daily time frame to even see
everything or to look for candles that
bearish candle, buy candle before sell
candle even though we might find it
there. But we don't need to look for
that. The reality is it is by
participants. That statement is true but
only true absolutely when you consider
participants. So from where sellers
aggressively took control from all form
of buyers
in nature not where sellers took control
from sellers. No sir, there must be
buyers exhaustion because that is where
buyers will agree totally that okay no
problem
we agree with that price buyers
exhaustion that is where they can
because if you still have a sellers
liquidity if you still have sellers
raiding sellers sellers buyers will be
using that their liquidity to f more
buys
that is the reality now because they are
still seeing something to buy they'll be
using it to f more buy so you need where
we have complete buyers exhaustion.
Buyers are exhausted by who? By sellers.
Where sellers raid buyers totally. So
buyers exhaustion,
sellers momentum. So sellers gained
momentum here and they raided every form
of buyers liquidity because all of these
low are buyer sponsored right
by virtue of participants.
And that right there is your what?
Is your
range of imbalance
actually up to the Monday high.
Okay, that right there
is
your
uh
zone where the cell will call from. So
all these guys that you see price rating
along the way is because of the most
discounted liquidity not because they
offend price. That is if let's say the
most discounted liquidity for example
let's say it is sessional let's just
assume it is sessional liquidity
the most discounted let's say it is
sessional
all right and let's say this is
valid sessional zone
area
that is where price will reverse from
price will not need to go
this much. And you see the moment price
reach the exact point it should reach
the reverse has started because there is
no long more reason
no more reason to go further.
The reverse has started.
Boom. your first target the bias
liquidity
and then since you know price should
continue
the final
range this is premium and discount
liquidity.
Okay. And that is that.
All right. For example, on trapped
liquidity
is this particular
trade
that
uh during the rollover where is the
where is the rollover day? Uhhuh. I
found it. This guy right here.
I don't know if I reconfirm now. I'm not
sure. But in this case in this sell
range I think this is the most premium
eye in that sell range
and I think the weekly is not available
as liquidity. I can't remember now but I
don't have the luxury of time to confirm
that either is available as liquidity or
not. The major thing there is that
here there was daily liquidity daily
self flip here. So there was daily
liquidity here as this eye
and what sponsored the move.
Now that daily liquidity is now trapped
within this weekly range because price
has broken out of a weekly range. This
is the weekly open. That daily liquidity
is now trapped within the weekly range.
Check all around here. You will not see
any daily exhaustion imbalance zone that
sponsor this mo. No sir. Norma
the move that sponsored this the all of
these are weekly basis all of these all
of these are ranges is this eye here
this is the point where buyers took
control a buying week this week right
here a new week opened here this gap
that you see here is buyers week by
virtue of any confirmation you want to
confirm so this is the week where buyers
took control
from sellers.
Sellers are dominant here. You can go
and confirm yourself. And buyers are
dominant here where buyers took control
from sellers. And that exactly
is the sniper entry
for buy continuation
and for reversal on the liquidity that
was engineered by sellers.
So why do why is it that price did not
need even though this is the liquidity
why is it that price did not need or did
not tap I think before you can find any
daily this thing will be here or
something yes this is daily open around
here price did not even touch it at all
why is that price did not need it
because what is controlling the range
now is not the daily
it is the weekly breakout out. So it is
weekly
exhaustion imbalance that can sponsor
that particular move. And that right
there is everything
about
liquidity.
Every other thing about liquidity will
be applying it
practically life. All right. So that's
all for this.
Okay.
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