TRANSCRIPTEnglish

LIQUIDITY: Premium and Discount

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FULL TRANSCRIPT

0:05

All right guys, um

0:08

majorly in the

0:12

last

0:14

session

0:16

that is in the last um

0:20

so majorly in the last class. Okay.

0:26

um

0:30

for the liquidity class a minute.

0:35

So majorly in the last class for the

0:37

liquidity class

0:42

we spoke about

0:51

we spoke about the internal liquidity.

0:54

What makes it internal?

0:57

I emphasized on the fact that what makes

1:00

it internal is not because it is

1:03

internal. In quote, what makes it

1:06

internal

1:09

is

1:11

the fact that it is on found on the

1:14

aggressor trend that is the present

1:18

trend.

1:19

uh we spoke about

1:22

some differences between

1:25

internal and external liquidity and I

1:28

also made a correction

1:31

about external emphasizing on the fact

1:33

that the

1:37

interactions of the external

1:40

with a swing guy or low

1:45

that is liquidity is

1:48

temporary. temporary until price

1:52

in temporary sense that once price

1:55

crosses to the next high liquidity or

1:59

low liquidity

2:02

um

2:06

that particular first one becomes

2:09

something that that whatever happens

2:12

there maybe an absorption was starting

2:14

there then it is no longer

2:18

um of reference.

2:21

All right, that is majorly what I

2:25

mentioned.

2:26

So

2:28

now the next thing we want to look at

2:32

is

2:35

of course

2:42

to look at um the other two part of

2:46

things which are the premium and

2:49

discount and trapped liquidity. So let's

2:52

start with the premium and the discount.

2:58

liquidity

3:02

and discount.

3:10

All right. So for the premium or

3:13

discount liquidity,

3:15

the first thing you want to understand

3:17

is that anything called premium or

3:20

discount is not as people see it. Any

3:23

call premium or discount

3:26

is relative.

3:28

That is the first

3:30

major characteristics

3:34

of it is relative. So what do I mean by

3:39

that?

3:40

So what I mean by that is that

3:45

a minute I don't know

3:52

[Music]

3:54

So anything called premium

4:00

or discount.

4:08

So anything premium or discount is uh

4:12

relative.

4:18

So what do we mean by

4:21

being relative?

4:24

Being relative in the sense that

4:28

let's say that and of course talking

4:31

about premium or discount

4:34

this is only

4:37

in reference

4:39

to internal liquidity.

4:44

Same thing with traps liquidity. So all

4:46

of this is only in reference to internal

4:50

liquidity.

4:52

Your external liquidity there is nothing

4:54

like premium or discount there because

4:56

external is external. That is it. All

4:59

right. So for example

5:01

um

5:03

this low right here

5:07

for example this low right here on the

5:09

chart

5:11

is not premium or discount to any low

5:15

per say it is rated it is rated there is

5:19

really no other low to to it or whatever

5:24

right so

5:27

it's only the internal that is the highs

5:30

now

5:32

those are the ones that we can reference

5:34

to all right based on the interactions

5:37

that happen here. So those are the ones

5:41

we are relatively

5:43

talking about. Okay. So please do well

5:48

to note that. Now going back to what we

5:53

have.

5:58

Okay.

6:01

So, anything premium or discount is

6:04

relative in the sense that

6:07

say I have this that is I have this uh a

6:13

low

6:14

high

6:16

lower low

6:18

high

6:20

lower low again. And then um

6:25

let me make this a little bit more

6:28

structural. So let's say I have

6:29

something like this.

6:34

All right. And then we have this

6:47

in this trend.

6:50

So let's say this is the beginning of

6:51

the sell trend. The very beginning of

6:54

the cell trend is this I or this point

6:58

label point A like that is the absolute

7:02

origin of this cell trend from anywhere

7:06

you are viewing it.

7:10

And let's assume that based on the

7:13

interaction here,

7:15

let's say there is absorption here,

7:19

absorption leads to formation of

7:22

liquidity. So making this to be

7:24

liquidity.

7:29

Let's assume that here no absorption.

7:34

No

7:36

absorption.

7:41

So not liquidity

7:47

not liquidity

7:51

and then here there is absorption.

7:57

So we have liquidity.

8:03

Okay. Perfect. Sorry there is

8:06

absorption.

8:10

absorption

8:14

then liquidity.

8:23

All right, great.

8:26

Now

8:32

this is not liquidity. So I

8:34

intentionally put it so that we can

8:36

understand that not every swing guy is

8:40

liquidity. Neither is it every swing low

8:42

that is liquidity.

8:46

In this sell trend, the most premium

8:49

liquidity

8:52

relatively

8:54

is this this very first one that was

8:57

formed in relation to the other one

9:01

that is let's now say this one here

9:05

let's say this one is liquidity that is

9:09

now let me make this to also be

9:11

liquidity.

9:13

So let's say this guy here is liquidity.

9:20

This in rank will be most premium

9:32

in rank will be most premium.

9:37

This in rank if it is liquidity will be

9:40

less premium.

9:46

Most premium. Less. Less premium.

9:54

Less premium.

9:59

And this right here will be least

10:03

premium.

10:11

least premium

10:14

liquidity.

10:16

So this will be the most premium,

10:19

less premium,

10:22

least premium.

10:26

Now what makes this matter to us? Why is

10:31

this important?

10:33

We will get to understand this better

10:36

when we are dealing with uh in our next

10:40

session of practical that is zones

10:44

practical where we'll be

10:47

having practicals on

10:51

uh zones.

10:53

Okay, that is our imbalance,

10:57

exhaustion imbalance and momentum

10:59

imbalance. But we need to speak about

11:02

those here so that we can understand

11:04

because based on nature of liquidity is

11:07

what determine the zone of activation

11:09

that will cause reversal to it. That is

11:17

what is the effect of this

11:21

relative assignment? Why do we assign

11:27

most premium, less premium, least

11:29

premium to each of these

11:34

so that we can know as a rule that

11:38

no matter the nature

11:41

of this liquidity,

11:45

it is the one on top of the chain and it

11:48

is the one that controls every other

11:50

liquidity lower. And this is of course

11:53

logical and this is exactly how life

11:55

works.

11:57

The ones on the topmost part of the

11:59

chain,

12:01

the government

12:04

actually

12:05

determines

12:07

what happens irrespective

12:10

of these guys. So maybe the ones not in

12:13

government that are relatively rich, we

12:15

say that is less premium

12:18

and the poor least premium.

12:23

Okay.

12:26

If

12:33

government

12:35

says

12:38

or wants to drive a liquidity, wants to

12:42

drive price towards themsel.

12:47

that is

12:49

government finds

12:53

interest in this zone based on the

12:56

nature of government.

12:58

So and the reason why you can't a very

13:01

young person can be

13:05

for example the most premium

13:08

let's say the president now can be 50

13:13

years old

13:14

and the least premium in this case can

13:18

be 90 years old.

13:20

So it's not by age that is my point that

13:25

is it doesn't matter if the most premium

13:27

is session in nature that is the highest

13:29

volume relationship is sessional formed

13:32

with between the same day

13:37

it doesn't matter

13:40

let's now say the least premium here

13:44

is monthly relationship

13:49

if Price find a valid sessional

13:54

valid

13:57

sessional

14:00

exhaustion

14:03

imbalance

14:04

that is where sessional buyers

14:09

took over from sessional sellers

14:13

without making such areas of the

14:16

liquidity.

14:19

If price finds a valid sessional

14:24

exhaustion imbalance here that is the

14:25

liquidity here let's say it is sessional

14:32

the liquidity here let's say it is

14:34

daily.

14:38

Let's even say the liquidity here is

14:40

even yearly that big let's say is the

14:43

oldest biggest in size just big for

14:46

nothing

14:50

and such that yearly zone is still far

14:53

far zone is still far far far below.

15:00

If price find your sessional

15:04

valid sessional exhaustion imbalance

15:06

here,

15:10

buys will trigger

15:13

and will raid all of these guys

15:17

all the way up. Even though price maybe

15:21

price has not gotten to daily valid

15:23

exhaustion imbalance, price has not

15:25

gotten to yearly value exhaustion

15:28

imbalance. What controls the chain is

15:32

the one that is formed first with

15:35

respect to the other one. That is formed

15:38

first does not necessarily mean formed

15:41

first on here. Formed first with respect

15:44

to the other one. For example, let me

15:47

reverse

15:52

the engineering of what I just

15:56

put here.

15:58

So let's say for example

16:03

here we find uh we have daily

16:09

and here we have uh sessional

16:16

and here we have uh monthly

16:26

and price find sessional

16:28

Valid sessional

16:30

valid sessional

16:33

exhaustion

16:35

imbalance. Exhaustion imbalance is what

16:37

reverses price not momentum imbalance.

16:40

Momentum imbalance is for continuation.

16:43

Anything called reversal that is what

16:44

you anticipating here is reversal of

16:47

bearish trend for price to buy to your

16:50

liquidity. So that is a reversal

16:52

anticipation not a continuation

16:53

anticipation. So s the reason for the

16:58

word exhaustion

17:01

very important that is the major

17:03

difference.

17:05

So valid sessional imbalance but price

17:08

has not gotten to let's say lower here

17:11

is where we have uh

17:14

valid

17:16

daily

17:19

imbalance and this one is monthly. Let's

17:22

say lower lower is where we find we see

17:25

monthly valid monthly

17:28

price will use our valid sessional

17:31

imbalance

17:34

and it will use it and use it to buy to

17:39

raid the sessional even though price has

17:41

not gotten to the monthly. So that's why

17:43

we say it is relative.

17:46

This is the relativity of premium

17:50

or discount relationship.

17:54

So price here will read

17:59

and come and take the session but will

18:01

not take the daily because daily is more

18:04

premium than the sessional

18:07

liquidity in this range

18:15

except if there is more another more

18:17

premium thing above the daily that is

18:20

driving price maybe another liquidity

18:23

above the daily whereby price is now

18:25

ready and price has already touched the

18:27

value exhaustion imbalance of that one

18:29

as well. But so far this is what is on

18:31

the chain.

18:33

So far this is what is on the chain.

18:36

Price will come even though monthly

18:38

exertion imbalance has not been tapped.

18:40

The session will sponsor price towards

18:42

itself because it is the bigger person.

18:46

So let's say yes the the the the least

18:50

premium here let's say is the gate man

18:54

and the less premium here is the rich

18:57

person that employ the gate man. This

19:00

guy can easily drive without needing

19:05

that he doesn't need the validation of

19:08

the gates man to make decision to drive

19:11

price towards itself.

19:17

Apologies for the word gate man and not

19:19

but that is how the word is. The word is

19:21

not fear

19:23

that is the reality.

19:27

The word exist on imbalance. That is

19:29

just the reality of life.

19:33

Either we like it or not, no matter how

19:35

you try,

19:37

the higher percentage will always be

19:39

poor.

19:41

That is it. And that is why you don't

19:44

want to lazy around and because you've

19:48

tried something for few months, year and

19:52

you give up.

19:55

Good luck to you. But the world does not

19:58

care. The war continues either way

20:06

sessional.

20:08

So it will drive it.

20:13

It will drive it.

20:16

And then price after we have maybe

20:19

external absorption uh or trend answer

20:22

or full absorption

20:26

price will continue.

20:30

The only singular thing,

20:34

all right,

20:35

that can make price in this scenario I

20:39

just stated, the only singular thing

20:42

that can make price to raid

20:45

more premium liquidity

20:53

that can make price to read. It

20:56

is

20:59

based on the most premium liquidity at

21:02

this buy side as well

21:04

because that is also important for this

21:06

reversal to occur.

21:09

Let's say the most discount now this is

21:12

now discount. So let me start drawing it

21:14

into each other already. The most

21:17

discounted liquidity here let's say is

21:20

monthly. Now in this case monthly is now

21:23

the most discounted in this case

21:28

and

21:32

let's say here we have daily and all for

21:35

a continuation of sell to happen. Yes we

21:37

know that price want to continue

21:39

selling. Maybe based on your analysis

21:41

you know that price want to continue

21:42

selling. That's fine. We we we all agree

21:45

on that.

21:48

But for continuation of sell to of sell

21:51

to happen means a reversal on buyers.

21:58

Both of them

22:02

always coexist.

22:04

A continuation does not happen without a

22:06

reversal. A reversal does not happen

22:07

without a continuation.

22:10

Continuation of buyers is a reversal on

22:13

seller. Continuation of a buy trend is a

22:16

reversal or sell trend.

22:18

continuation of sell trend is a reversal

22:20

on buy trend.

22:24

So the only case scenario

22:27

when you can have price yes we know that

22:32

sessional exhaustion imbalance is what

22:33

sponsored this move in the first place

22:36

and we know that this particular high is

22:39

to be rated surely

22:42

one more thing that can make price to

22:44

extend further

22:47

within the range without necessarily

22:50

eating the daily exhaustion imbalance

22:53

zone.

22:55

Is

22:57

if when the buy trend that is the

22:59

pullback now which is now a buy trend.

23:02

If

23:05

the most discounted liquidity

23:08

there has not found its own exhaustion

23:12

imbalance zone

23:15

that you say for example this is monthly

23:17

as the most discounted. Most discounted

23:20

means most discounted. The first

23:24

liquidity, true liquidity that was

23:27

formed based on HRC, based on absorption

23:29

here, maybe M plus

23:33

and M minus.

23:38

Yes, reversal will happen within a

23:40

monthly momentum. Sorry, reversal will

23:43

happen within momentum imbalance area.

23:47

We'll get get to see more on that but we

23:50

need to understand this ideally from the

23:53

liquidity class.

23:58

But

24:01

based on this right here, this

24:03

particular monthly right here,

24:08

let's say the monthly valid exertion

24:11

imbalance is somewhere here.

24:14

So this is where we have um buyers

24:18

taking over kind of inside this range.

24:21

Buyers taking over and then sellers

24:23

taking over from them. Buyers

24:25

exhaustion, sellers momentum without it

24:28

being liquidity

24:30

or that is inside the range because it's

24:32

always a range. You can have multiple

24:34

monthly candles here. Maybe one base,

24:36

two base, three bases

24:39

based on normal supply and demand.

24:42

So the most discounted is monthly.

24:47

This guy that will make it travel

24:50

further and further and further and

24:54

further. Remember when I was discussing

24:56

about monthly

25:00

um uh when I was discussing about

25:02

momentum absorption in our last

25:04

practical class on liquidity and

25:07

exhaustion absorption. I said momentum

25:09

assumption can be due to two things.

25:12

Number one,

25:14

if that thing has not found

25:19

the liquidity it is the what will

25:22

reverse it monthly is the most

25:25

discounted here. So it determines

25:28

the whole overall reversal on buyers

25:32

which is the pullback and also the

25:35

continuation for sellers in that sense.

25:40

So this will make price travel further.

25:44

This is the only case scenario because

25:46

the most discounted liquidity here has

25:49

not found

25:51

the exhaustion imbalance zone that will

25:54

sponsor reversal on buyers. So buyers

25:57

will still have momentum

26:01

the pullback but we know that it is not

26:03

to reverse on all the session. We know

26:05

that we are still bearish.

26:08

In this case, this can happen. A valid

26:11

sectional exhaustion imbalance, yes, is

26:13

the reason why we buy in the first

26:14

place.

26:17

But the reason why we might not even

26:19

take all our profit from here on by is

26:22

if we see the type of liquidity price

26:24

engineered first when that pullback

26:26

started

26:30

and we find it exhaustion imbalance, we

26:32

see that yes, it is still further away.

26:34

So we can just take maybe some partials

26:37

here but you know you shouldn't be

26:39

selling yet even though this is the most

26:41

premium among the three liquidity maybe

26:44

there is another more premium so that

26:47

means okay let's say this is more

26:48

premium our most premium is still here

26:54

right here

26:57

so basically

26:59

this can make price travel further why

27:04

because it is seeking

27:07

the zone

27:10

and I will site an example for you. I

27:14

play law tennis

27:18

and in law tennis

27:21

one major thing to note is that

27:25

what you are focusing on

27:29

is majorly the ball or even your normal

27:31

table tennis. Let's just relate it to

27:33

the normal table tennis.

27:37

It is that tennis ball that you your

27:40

focus is on.

27:44

Now that tennis ball

27:47

and also referential to

27:51

you eating back the ball once it is

27:53

played towards you determines your

27:56

position at every point in time.

28:00

You will have to shift your where. So

28:04

which means that your wear is shifting

28:06

at every point in time.

28:10

Where you find value at every point in

28:13

time is dependent

28:18

on where the opponent

28:22

place the bottle was.

28:26

For example, in long tennis when you put

28:30

you are on your set mode at the middle

28:33

and you handle your racket centered at

28:36

the middle focused.

28:39

If the ball is launched towards

28:44

far end of you that is far end of the

28:46

court

28:49

as the ball is coming you have to

28:51

predict

28:54

where it will most likely land. And when

28:56

you predict correctly where it will most

28:58

likely land and you see that it will

29:01

land somewhere very close to you that

29:05

will determine your wear. That is where

29:08

you will have to move at that point in

29:09

time. That is you have to move backward

29:13

so that you will be able to reciprocate

29:16

that energy or to be able to eat the

29:19

ball effectively.

29:23

If not, you will miss the ball after the

29:26

bounce.

29:28

That is just the reality. Or you will

29:31

eat the ball wrongly. That is, you might

29:33

now eat the ball in a way that it won't

29:35

eat the table at the opposite side at

29:37

all.

29:39

I believe everyone understand the

29:41

picture here.

29:44

That's exactly how we where works.

29:52

where price

29:54

will find value to sell

29:58

is not

30:01

dependent

30:03

on the cell trend.

30:06

That is why I use that long tennis or

30:08

table tennis example

30:11

action reaction

30:14

equal but opposite

30:17

it is not dependent on the cell trend.

30:19

No where

30:22

You will have the cell continuation

30:25

that is where sellers will take control

30:28

again. It's not dependent. No,

30:31

it is dependent on buyer. Now this buyer

30:36

now is your opponent. It's dependent on

30:38

where your buyer shoots the ball

30:41

towards.

30:43

That is where we determine where you

30:45

sellers will find value. Does this make

30:48

sense to you? Do you understand?

30:55

Do you understand now?

30:59

That is you can't just look at this

31:02

and just pick a zone yet that okay this

31:08

particular zone is where I will put my

31:11

cell. That is why everything

31:13

fundamentally is wrong with how most

31:15

people trade.

31:17

Yes. Even though some people find edge,

31:19

it works sometimes and the lives.

31:23

But in reality, you sincerely

31:28

do not know the other block to pick for

31:32

a continued sell or your so-called area

31:36

of interest supports to peak yet. No,

31:40

you don't know it until buyers engineer

31:43

their almost discounted liquidity

31:45

because the continuation of sellers for

31:49

sellers to continue still using that

31:51

pennise example

31:55

for sellers to continue that is for you

31:58

to be able to continue that is to eat

32:01

the ball back

32:04

is dependent on where your opponent

32:08

which is Now buyer

32:10

for you which is seller to be able to

32:13

eat that ball

32:16

back

32:17

towards the initial direction it is

32:19

coming from is dependent on where your

32:23

buyer shoot towards.

32:29

So how do you know where your buyers

32:32

shoot towards

32:34

so that you will know where to wait for

32:36

them? The most discounted liquidity.

32:42

The most discounted liquidity

32:45

on buyers. So premium

32:48

and discount does not happen

32:50

independently like people do using just

32:53

Fibonacci and all. Premium and discount

32:55

is deeper than that.

32:58

And this is exactly what I'm teaching

33:01

you at its core.

33:04

At its what? At its core.

33:11

At its core.

33:14

Because even while you are selling,

33:18

so the most liquidity is what determines

33:21

the zone you go ahead to wait for. You

33:24

have to let it form first.

33:28

If not you sincerely do not know and I'm

33:31

telling you for a fact you might think

33:32

you know but you don't know where price

33:35

will continue your sell because your

33:38

seller continuation is solely dependent

33:42

on the aggressor where passive will get

33:45

activated is dependent on the aggressor

33:47

interest

33:50

aggressor drives price in in immediate

33:53

effect

33:55

passive adjusts their sins passive are

33:58

like at times trapped liquidity that

34:00

need to be activated. There are a lot of

34:03

passive orders around the range. The

34:06

question is which one will be will price

34:10

go for? What gives you the clue? The

34:12

most discounted liquidity.

34:15

So if the most council liquidity is

34:17

monthly

34:19

that means that is where buyers can

34:23

agree with sellers.

34:28

That is where both of you find value.

34:31

That is why it is also called fair value

34:35

area. So your fair value area is never a

34:38

permanent area.

34:41

Your order block is never just an order

34:43

block you just pick randomly.

34:49

Your fair value area just even forget

34:52

about calling it even other block. Your

34:55

value area where buyers and sellers find

34:58

value for reversal

35:01

that area is determined by both of them.

35:06

In case of you want to sell for

35:08

continuation, sellers continuation

35:11

is dependent on buyers reversal.

35:14

Where will buyers agree to reverse? That

35:18

is

35:20

exhaustion imbalance zone

35:26

based on buyers. So buyers will engineer

35:28

their liquidity that yes we engineer

35:31

monthly liquidity

35:34

as our most discounted liquidity that is

35:37

the do you know what discount even means

35:39

that is the last price we are willing to

35:41

sell users. This is basic market

35:44

structure

35:46

that most of you did not learn. This is

35:50

what should even be called market

35:52

structure if you really want to

35:54

interpret structure very well.

35:58

where we find value.

36:03

This is our most discounted price is

36:08

this this liquid that is engineered. The

36:10

price there let's say is 1.0712.

36:14

That low is what will determine that is

36:16

the most discounted.

36:19

If there are some value that can take

36:21

some

36:23

less

36:25

uh discount or is it more discount now

36:28

yes it will have to be more discount now

36:31

because it is in reverse right you

36:33

English people here I believe it

36:35

shouldn't be uh most premium it should

36:38

be more discount right

36:42

or whatever you understand what I mean

36:45

so such liquidity can be taken when

36:47

those ones but for the most discounted

36:50

liquidity

36:52

it own zone has to be hit

36:56

before buyers can agree that yes we are

37:00

done we have now sold everything because

37:03

that is their most discounted price now

37:06

that so where would they sell it they

37:09

will sell it at where there is

37:14

sellers for it

37:18

That is buyers will buy and close all

37:21

their deal where there is what

37:23

exhaustion imbalance

37:27

to replicate that particular effect

37:34

monthly exhaustion imbalance zone. So

37:36

which means even though the buy starts

37:39

what gives you the what gave you the

37:41

hint for the buy is this sessional

37:44

liquidity you saw here and you saw that

37:46

price is at a valid sessional imbalance

37:47

zone

37:50

when this is engineered when the ball is

37:53

eat by your opponent

37:56

my brother

37:58

that is that will cause even this more

38:02

premium liquidity which is more premium

38:04

than this to be raided along the Okay.

38:06

So, it is more like bonus for price

38:08

along the way because buyers do not find

38:12

value there.

38:14

Where buyers find will find value is

38:17

based on their most discounted

38:18

liquidity.

38:21

That is where they find value.

38:25

This is the concept of premium and

38:28

discount and that is where continuation

38:31

for sale will happen. Mini reversal on

38:35

buy will happen.

38:44

Simple,

38:46

logical

38:48

and nothing but the truth.

38:53

And this is everything about premium or

38:55

discount.

38:57

This is their relationship.

39:00

Then to the last one before I quickly go

39:02

to the chart and then we round off

39:06

trapped liquidity.

39:08

This is very direct. I've already

39:11

mentioned yesterday that you can only

39:13

have trapped liquidity

39:16

within

39:18

internal

39:20

liquidity range. You cannot have

39:22

liquidity externally because anything

39:24

externally is what is temporary

39:29

trapped liquidity.

39:31

Tra liquidity is very simple and direct.

39:34

What does he say? He says that

39:38

if I have this

39:41

whereby

39:43

this guy here let's say it is a

39:45

sessional liquidity

39:48

that is based on the relationship of

39:49

what happens here

39:53

what happened there. So it is a

39:54

sessional liquidity

40:01

right

40:04

but

40:06

let's say this low was formed from the

40:08

previous week

40:16

and the aggressor that is the move that

40:18

came to read it

40:21

formed in a new week aggressor

40:27

is formed in a new week.

40:33

The rule says whatever makes your

40:36

sessional liquidity to be trapped inside

40:38

this range maybe because it didn't find

40:41

value here that is there was no valid

40:45

sessional

40:48

exhaustion imbalance

40:50

that could reverse

40:53

this guy.

40:56

Either this

40:58

based on interaction between this

41:00

passive and aggressor either it makes

41:02

this to be liquidity

41:04

or it makes it or it is not liquidity.

41:08

It doesn't matter either this is

41:11

liquidity or it is not liquidity.

41:15

What will trigger this reversal is no

41:19

longer a sessional liquidity uh a

41:22

sessional valid imbalance zone

41:25

exhaustion imbalance zone. What will

41:27

trigger this right now will be a weekly

41:33

exhaustion

41:36

imbalance zone.

41:39

So in nutshell this liquidity is trapped

41:44

within this range that is in that case

41:47

you can't see sessional liquidity here

41:52

sessional valid imbalance zone here

41:58

and you are now trying to buy there when

42:02

this is already trapped in this range.

42:04

It is now trapped within this high and

42:07

this low.

42:11

Power does not belong to the sessions

42:13

again. They are now trapped within that

42:15

is they are trapped within weekly

42:18

participants range.

42:20

They are still liquidity

42:23

but they need weekly volume to get

42:25

trigger.

42:27

That's their reality now. They are

42:30

trapped there. They are not independent

42:31

again. The price has broken out of a

42:34

weekly range.

42:37

They are no longer in control.

42:40

So this session liquidity cannot get

42:42

triggered by a sessional imbalance zone

42:44

again. No, they are trapped within a

42:46

weekly volume. Weekly volume has now

42:48

mixed with them. They are not

42:50

independent anymore. Look at it now.

42:52

Because this eye here is is cover is

42:56

covers everything within that range.

43:00

So every liquidity here either maybe

43:04

after session is formed even daily is

43:06

still formed. Every liquidity there

43:10

every lower liquidity there is trapped

43:14

and of course is only lower liquidity

43:17

that can get trapped in a higher

43:18

liquidity. Obviously that one is just a

43:21

straight common sense. A higher

43:23

liquidity can never get trapped here.

43:25

Let's say monthly a new month open year

43:28

or something. Automatically a new month

43:29

open here. Automatically this low two

43:32

was formed from a previous month. Now

43:33

isn't it? This low is was formed from a

43:36

previous month. So automatically that

43:40

logically

43:43

is simple and direct, right? Because

43:46

whatever makes a new month to open year

43:49

such that monthly liquidity is here

43:51

automatically this particular low was

43:53

formed from a previous month or even a

43:56

previous year automatically. So it is

43:57

only a lower

44:01

liquidity

44:03

range in terms of sessional or daily

44:06

that can be trapped within a weekly

44:07

range obviously.

44:11

So basically where price will find

44:14

balance will be weekly exhaustion

44:19

imbalance zone

44:21

where buyers took over from seller that

44:24

sellers exhaustion buyers momentum

44:28

and then that is what will now so if

44:32

this for example

44:34

if it is not if this is not liquidity

44:36

and price is not seeking it no problem

44:38

but the major thing is there will be buy

44:41

from that place and your target is

44:44

decessional liquidity

44:48

that's your target

44:51

okay so that is the major thing to note

44:53

there so your weekly exhaustion

44:56

imbalance zone is what will trigger

45:02

the buy towards that tra liquidity not

45:06

an ordinary sessional imbalance balance

45:09

zone except if the session imbalance

45:12

zone of course is covered by weekly

45:15

exhaustion imbalance zone. So that's

45:17

pretty much about that for trapped

45:22

liquidity.

45:24

Okay. So

45:28

from our

45:31

last example

45:36

of um

45:40

from our last example of

45:44

signal

45:47

we

45:51

saw extensively this particular same

45:53

range. We saw extensively

45:57

that uh Yeah, you are welcome. We saw

46:01

extensively

46:02

that from our last

46:06

uh example,

46:08

we saw extensively

46:10

that um

46:13

Tuesday

46:15

which is uh here we saw that it is

46:18

buyers in terms of daily participants

46:20

and we also saw extensively that Monday

46:23

is sellers.

46:25

So here

46:28

the most premium liquidity price

46:29

engineered here was daily which was

46:33

between Tuesday and Monday. So Tuesday

46:36

was

46:38

D.

46:43

So Tuesday was uh D

46:48

on Monday rather which was the passive.

46:50

Let me go to a lower time frame so that

46:52

we can see that range clearly. So Monday

46:55

which was the passive this high year was

46:57

D minus by all reason and all virtue

47:01

that is why I'm using this exact example

47:03

because we have already found

47:06

it isn't so so D minus and Tuesday we

47:10

saw by all virtue of um of validation

47:15

that it was D plus

47:18

so the most discounted liquidity

47:21

that was initiated by buyers

47:25

along the way is daily liquidity. So

47:28

this is DL daily liquidity

47:33

and

47:34

this guy here is a sessional liquidity.

47:37

Yes, when we get to sessional this I

47:39

will come and validate it for you again.

47:41

This guy is a sessional liquidity

47:46

but

47:47

price did not read it because

47:51

a sessional zone was mitigated. No, it

47:55

wasn't because a sessional zone is

47:58

sponsoring Dubai.

48:01

That's not why price raed it

48:05

at all. That's not the reason.

48:09

price it because

48:14

the only place price will sell from that

48:17

is price did not rate this because it is

48:19

liquidity. I don't even think this one

48:20

is liquidity at all. This eye I don't

48:22

even think it is liquidity at all. Same

48:25

with this eye here. Price did not rate

48:27

them because they are liquidity.

48:31

Price raed them because price was

48:33

seeking balance.

48:38

It was seeking the exhaustion imbalance

48:40

zone so that there can be agreement

48:43

which is balance

48:45

for reversal on buyers to happen and

48:49

continuation of sellers to occur

48:53

and where did price go again by virtue

48:56

of all understanding that we had we knew

49:00

that Friday

49:03

was D plus as registered by us in the

49:08

previous signal practical session

49:13

and Monday right from here we knew that

49:17

it was sellers

49:21

and where is ex what is meaning of

49:23

exhaustion for sellers if you want to

49:25

sell what are you looking for you are

49:28

looking for where sellers

49:31

took control from buyers in nature not

49:34

by buying candles or selling candles.

49:38

So we know that Friday,

49:43

Monday sellers took control here and

49:46

they raided

49:48

everywhere down. They raided all of

49:51

Friday.

49:52

Thursday was sellers in nature by virtue

49:55

of confirmation. You can go and do that

49:57

one practically yourself. It was sellers

49:59

in nature. Thursday was sellers in

50:01

nature.

50:02

So which means that if Thursday was

50:04

sellers in nature up to

50:09

uh

50:11

up to okay on 1 hour time frame where we

50:13

confirmed this I think this was the

50:15

closing candle high. So from here we

50:18

significantly saw that buyers took

50:19

control from exactly this straight line.

50:22

This was the closing candle high that

50:24

was taken. Every other thing here was

50:26

inside bar. So from this eye here

50:31

as you can see buyers were there. So up

50:34

to that eye

50:37

this was the last major swing high that

50:40

was formed on Thursday and I said

50:41

Thursday everything is sellers by

50:44

nature.

50:45

So up to that particular high buyers did

50:50

not take control. It is until that high

50:51

was rated that we significantly can say

50:54

that buyers took control. So Friday D

50:56

plus ultra and what is

51:02

bias exhaustion? What we are looking for

51:04

is bias exhaustion

51:06

zone. We will still revisit this

51:08

particular example by the time in the

51:10

next practical class. By the time we are

51:12

dealing with zones practical class

51:14

buyers exhaustion

51:18

very important sellers momentum

51:26

you know there are some terminologies

51:28

that are used in SMC trading that are

51:30

actually true but just not

51:35

valid extensively because they do not

51:39

understand participants and That's why

51:41

HRC you see on my profile on Twitter,

51:45

I've changed it to the science of market

51:48

participants because that's what makes

51:51

the difference. When they want to talk

51:53

about bearish order block, what would

51:55

they say? They will say the last buy

51:58

candle before the sell, isn't it? Is

52:02

that not bearish order block? They say

52:04

bearish order block is the last buy

52:06

candle before what?

52:09

before is sell

52:12

and you say bullish

52:14

order block is the last

52:17

bullish candle is the last bearish

52:20

candle before they buy is that so

52:24

for those that have traded SMC here

52:26

before almost all of you have traded SMC

52:29

I don't know why you guys are shy now

52:32

eh why are you shy

52:37

bullish order blog is the last sell

52:40

candle before the buy. Hi, I want

52:43

everyone to answer.

52:45

Bearish other block is the last buy

52:47

candle before the sell. Isn't that true?

52:51

Exactly.

52:52

But the problem with that is that you

52:54

are using just your eyes to pick

52:56

candles. What about situation where you

52:58

can't even see the last buy candle

53:00

before the sell? You don't even know is

53:02

it on daily time frame that you should

53:04

be looking for that or on on 4hour time

53:08

frame. So look at how the science of

53:11

market participants help us separate all

53:13

these things and make it all objective.

53:16

That's we are not just even looking for

53:18

any random order block like 4hour order

53:20

block and all we are looking for in in

53:23

quotes now we are looking for daily

53:25

order block because we know it is based

53:28

on daily participants engineered

53:29

liquidity.

53:33

All right. But we don't even need to now

53:35

go to daily time frame to even see

53:36

everything or to look for candles that

53:39

bearish candle, buy candle before sell

53:42

candle even though we might find it

53:44

there. But we don't need to look for

53:47

that. The reality is it is by

53:50

participants. That statement is true but

53:53

only true absolutely when you consider

53:57

participants. So from where sellers

54:00

aggressively took control from all form

54:03

of buyers

54:07

in nature not where sellers took control

54:09

from sellers. No sir, there must be

54:12

buyers exhaustion because that is where

54:14

buyers will agree totally that okay no

54:17

problem

54:19

we agree with that price buyers

54:20

exhaustion that is where they can

54:22

because if you still have a sellers

54:25

liquidity if you still have sellers

54:27

raiding sellers sellers buyers will be

54:29

using that their liquidity to f more

54:32

buys

54:33

that is the reality now because they are

54:35

still seeing something to buy they'll be

54:37

using it to f more buy so you need where

54:40

we have complete buyers exhaustion.

54:42

Buyers are exhausted by who? By sellers.

54:46

Where sellers raid buyers totally. So

54:51

buyers exhaustion,

54:53

sellers momentum. So sellers gained

54:56

momentum here and they raided every form

54:59

of buyers liquidity because all of these

55:02

low are buyer sponsored right

55:05

by virtue of participants.

55:08

And that right there is your what?

55:12

Is your

55:15

range of imbalance

55:19

actually up to the Monday high.

55:25

Okay, that right there

55:30

is

55:34

your

55:36

uh

55:38

zone where the cell will call from. So

55:42

all these guys that you see price rating

55:44

along the way is because of the most

55:47

discounted liquidity not because they

55:50

offend price. That is if let's say the

55:53

most discounted liquidity for example

55:55

let's say it is sessional let's just

55:57

assume it is sessional liquidity

56:01

the most discounted let's say it is

56:03

sessional

56:04

all right and let's say this is

56:09

valid sessional zone

56:12

area

56:14

that is where price will reverse from

56:18

price will not need to go

56:21

this much. And you see the moment price

56:24

reach the exact point it should reach

56:28

the reverse has started because there is

56:31

no long more reason

56:36

no more reason to go further.

56:40

The reverse has started.

56:43

Boom. your first target the bias

56:46

liquidity

56:49

and then since you know price should

56:52

continue

56:54

the final

56:57

range this is premium and discount

57:02

liquidity.

57:05

Okay. And that is that.

57:08

All right. For example, on trapped

57:10

liquidity

57:12

is this particular

57:15

trade

57:17

that

57:19

uh during the rollover where is the

57:22

where is the rollover day? Uhhuh. I

57:25

found it. This guy right here.

57:29

I don't know if I reconfirm now. I'm not

57:31

sure. But in this case in this sell

57:35

range I think this is the most premium

57:38

eye in that sell range

57:43

and I think the weekly is not available

57:45

as liquidity. I can't remember now but I

57:47

don't have the luxury of time to confirm

57:49

that either is available as liquidity or

57:51

not. The major thing there is that

57:54

here there was daily liquidity daily

57:58

self flip here. So there was daily

58:00

liquidity here as this eye

58:04

and what sponsored the move.

58:08

Now that daily liquidity is now trapped

58:11

within this weekly range because price

58:13

has broken out of a weekly range. This

58:15

is the weekly open. That daily liquidity

58:17

is now trapped within the weekly range.

58:21

Check all around here. You will not see

58:23

any daily exhaustion imbalance zone that

58:25

sponsor this mo. No sir. Norma

58:30

the move that sponsored this the all of

58:32

these are weekly basis all of these all

58:34

of these are ranges is this eye here

58:39

this is the point where buyers took

58:42

control a buying week this week right

58:45

here a new week opened here this gap

58:47

that you see here is buyers week by

58:50

virtue of any confirmation you want to

58:52

confirm so this is the week where buyers

58:55

took control

58:57

from sellers.

58:59

Sellers are dominant here. You can go

59:01

and confirm yourself. And buyers are

59:03

dominant here where buyers took control

59:05

from sellers. And that exactly

59:10

is the sniper entry

59:14

for buy continuation

59:16

and for reversal on the liquidity that

59:19

was engineered by sellers.

59:22

So why do why is it that price did not

59:25

need even though this is the liquidity

59:27

why is it that price did not need or did

59:31

not tap I think before you can find any

59:33

daily this thing will be here or

59:35

something yes this is daily open around

59:38

here price did not even touch it at all

59:40

why is that price did not need it

59:42

because what is controlling the range

59:45

now is not the daily

59:48

it is the weekly breakout out. So it is

59:52

weekly

59:54

exhaustion imbalance that can sponsor

59:57

that particular move. And that right

60:00

there is everything

60:04

about

60:07

liquidity.

60:09

Every other thing about liquidity will

60:11

be applying it

60:14

practically life. All right. So that's

60:20

all for this.

60:23

Okay.

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