Notebook · Lesson 07

Useful Liquidity Pools

Source pages: Middle of 11 through 12 · Retail concepts & Liquidity notebook

Cleaned transcript

A cleaned breakdown of the handwritten notes, rather than an independent validation of their trading claims.

  • Equal highs and equal lows are useful liquidity pools.
  • Two matching highs are described as weaker evidence; a third adds confidence.
  • More candles separating the matching levels increase their significance in the notes.
  • Avoid automatically chasing a long after equal highs are taken, or a short after equal lows are taken.
  • Wait for structure after the sweep.
  • London highs/lows are another reference: wait for the level to be taken, then assess structure.
  • A sweep does not always produce a valid long or short setup.

Original handwriting

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