Liquidity Hit Liquidity Run Variables
1. Swipe liquidity by printing wicks over a certain level
ex. PMH, PML, PDH, PDL
2. As we swipe those levels the Internals (VOLD, ADD, Weight) must be trending in the opposing direction
3. Trend flips and we run to the opposing level of liquidity
1. Liquidity was never swiped on SSL which wouldve been the PML so there was no trade to the long side
2. Internals were trending "up" because they were above the OP but I learned this day that if the VOLD prints a big candle at open and then just starts trending down from there then its ok to ignore that first candle. It needs to hold the opening range though as a new OP
How did I trade it?
I was long early because VOLD was increasing strongly but I got out fast when realized I was wrong. This was a pure error on my part. Why go long if the market never swipe liquiidty on lows? This is a continuation strategy not a reversal one so on this its either breakout or get the fuck out. The second trade was again another long where I lost good chunk which again I was going long while the VOLD was starting to decrease again and trend in that direction while holding the opening range. Then again I got long and wouldve gotten back to breakeven had I just taken profits but instead I thought that we "swiped SSL" which is not true at all and I was targeting a point below the HOD and I got stopped out at the LOD then revenge shorted 2 contracts and lost like $500 more and my account stopped me out.
1. Revenge trading at its best. Just because its an eval account doesnt mean you can treat it like a "oh well now its bust or succeed." I have to make sure I am able to recognize the opportunity that I can use 20x my size and risk nearly nothing. I am able to grow this account at least enough to get a good amount of payouts but I need to be disciplined and not let my fuck it attitude take my over.
2. trading too early before anything interesting was happening.
3. Trading before an Liquidity level was swept
1. Swept PML liquidity
2. Internals trending up
3. Target 1 point below next LL
I traded this perfectly. We swept PML and were trending up on internals. I got out 1 point below the HOD. We moved lower eventually because news came out at 10 but if there was no news this trade wouldve looked much better becuase we would not have shot down like that and may have continued higher.
1. Swipe LL
- This is debatable but we didnt really sweep any HOD LL but we did recover that but gap from the premarekt whent he 830 news dropped and that high seemed like a good enough LL for me to look for a short back down to the LOD.
2. Internals all trending down hence why I was looking for a short
I got short on the internals trending lower signal after we swiped out the news flash drop. I only got about 6 points and just called it which I think was fine. I probably couldve been a little more aggressive with my target but it was a difficult day because we were already down quite a bit from PDC.
1. Swiped BSL
2. Was trending down for first 30 then back up
3. did not target another liquidity level
I shorted early on but I shorted kinda into the lows and I shouldve gotten ou tthe second it broke my candles high because that was not a good BSL swipe. I was way too eager on friday and I allowed myself to hold for a sizeable loser. I think the only trade that kind of makes sense is the swipe of PMH but we went like 7 points above it and then dropped and made super tight lower high then did it again and then finally dropped later on in the day. Meanwhile the internals were all trending back up so going short was not worth it either. This is a low probability day. There was zero thrust and very tight coily price action. It wouldve been a great day to scalp 3 point trades and leave after 2 of them but thats not this strategy. If we break the HOD or BSL and the internals are trending up but not strongly and its just kinda hovering above the OP just leave the day alone. its not worth it to even try to trade.