Exness: liquidity series - liquidity cleaning and reversal, decision interval

Follow up , This issue mainly talks about how the main force cleans the liquidity of prices by manipulating the order flow 、 Reverse the concept of liquidity and how to define key decision intervals .

Liquidity pool （Liquidity Pool）

On the price chart , Arbitrary historical highs 、 Historical low point 、 Or the historical constant high or constant low is the liquidity pool . among , The liquidity pool above the high point is called BSL, Means buyer liquidity . The liquidity pool below the low point is called SSL, Seller liquidity .

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Cleaning fluidity （Liquidity Purge）

In the process of driving the price movement , A large number of liquidity pools will be left . These liquidity pools appear because of the main construction 、 The recycling process of utilization . For example, the downward trend in the figure above , The main force is to push the price down from the highest point , The price rebounded after the low point , At that time, the low point is formed SSL, The future will be able to use this SSL Form a further downward breakthrough .

As for the second highest point formed by the rebound , It is the layout area where the main force enters again , And at the same time produce BSL, Reserved for future use when prices rise , Become the fuel that drives up prices .

From this it is found that , The emergence of a trend market is equivalent to the continuous construction of a liquidity pool in a certain direction 、 cleaning , The reverse liquidity pool cannot be triggered .

There is a short trend ：SSL Get into the build - cleaning - Rebuild the loop ,BSL Unable to trigger .

There is a long trend ：BSL Get into the build - cleaning - Rebuild the loop ,SSL Unable to trigger .

Understanding the concept of liquidity washing cannot directly help investors execute transactions , But it can help investors logically read the current market price trend preferences .

Liquidity reversal （Liquidity Revert ）

seeing the name of a thing one thinks of its function , Price reverse absorption liquidity pool . For example, on the chart , The price is rising continuously , Suddenly the price absorbed downward SSL. Why does liquidity reverse , Because the main force is trying to switch the market . therefore , Liquidity reversal is a signal of market turning .

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As shown in the figure , Price cleaning SSL A new low , Build the latest SSL, But then the price cleaned the bottom SSL Before, there was reverse liquidity , On the contrary, the transaction was made first BSL, It means that the price is about to turn down into up .

Frequently , Before liquidity reversals occur , Prices tend to have hunting stops （stop hunt） The phenomenon of .

Decision interval （Dealing Range）

The decision range is an important area that ultimately helps investors build their trading plans .

 

As shown in the figure , The decision interval is A-B spot . Because when the price changes from A Bounce back to B In the process of , You can find ：

1） Down to A Point in the process BSL It's a deal , A liquidity reversal , With the change of market structure .

2） BSL After the deal , explain A The point is low before cleaning SSL when , Synchronization is done Stop Hunt

3） A-B The kinetic energy of the rising process of the point is obvious , No drag .

When the decision interval is formed , Price expectations have shifted from short to long , Combine the concept of discount premium area and order block OB Concept , Can help investors build a more logical trading plan .

therefore , The condition for defining the decision interval is ：

1） After cleaning the liquidity pool in one direction, the reverse liquidity pool can be quickly traded （SSL Post rapid BSL, perhaps BSL Post rapid SSL）

2） Transaction reverse liquidity , The kinetic energy is relatively strong , Highlight the main capital intention and confidence

3） Complete market structure switching , Form the expectation of future price trend .