Liquidity Sweeps & Liquidity Runs A Thread 🧵
Arjo@arjoio
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Sep 30, 2024
~1 min read
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Liquidity Sweeps & Liquidity Runs
A Thread 🧵
A Thread 🧵
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1 - First we have to define what a Liquidity Sweep is.
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2 - We also need to define what a Liquidity Run is.
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3 - Once we have defined what a Sweep and a Run is we can look to identify them as they form in the market. We use 2 main concepts to identify Liquidity Sweeps and Runs : Offering Fair Value and Seeking Liquidity.
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4 - When the market is offering Fair Value, and we are respecting that Fair Value on the higher timeframe then it is likely that we are creating Liquidity Sweeps on the lower timeframe.
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5 - When the market is seeking Liquidity on the higher timeframe then often we are creating Liquidity Runs on the lower timeframe as price is mitigating Liquidity on the higher timeframe.
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6 - Lastly we have one more method to help us identify Sweeps and Runs. This is called "trapping". Trapping helps us identify if we are actually going to sweep Liquidity or if we are expanding through Liquidity. This is determined by whether we reverse from Liquidity with a lot of intention in the market or we consolidate around the Liquidity area.
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7 - We can use these 3 methods to help give ourselves the highest chance of identifying Liquidity Sweeps and Runs as they happen in the market and help us use them to trade.
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Full Video👇
youtu.be/ihj01J3_V_U
youtu.be/ihj01J3_V_U