Crypto Faunus

⚠️ Liquidity Cheatsheet ⚠️ The Algos that run the markets are programmed "To go after liquidity levels, to respect fibs, to close imbalances, (...)" -@Moneytaur_ I will explain how to find those liquidity levels: 🔹Image 1: Liquidity Blocks Order Block (OB) = Candle + Larger Candle (opposite color) Breaker Block (BB) = Order Block fully hidden behind a FVG (see Image 2 for FVG explanation). The more hidden it is (behind more FVGs), the more powerful it becomes. And the higher the timeframe, the more powerful it is. Partial BB: If the Order Block was wicked into, narrow it down to the unwicked portion. It’s only valid if the equilibrium (EQ=0,5 fib) of the OB wasn’t taken. Undivided FVGs are weaker, but they can still be used. Melted Breaker Blocks (BBs) are the weakest. A Breaker is stronger when price moves quickly through it. For example, a 1D Breaker Block (BB) with a 12H wick inside isn’t fully untouched as it would appear on the 1D timeframe. But if the Breaker Block is ignored even on lower time frames through FVGs, it becomes much stronger because its liquidity remains fully intact. That’s also why refinement works, it reveals the untouched areas on lower timeframes. For better entries, you want to see a Break of Structure and a retracement into those liquidity levels. 🔹Image 2: Wicks FVG = Grey Zone 3-candle pattern: One large candle between two candles with wicks. The zone between those wicks is the Fair Value Gap. The EQ of an FVG can act as an important confluence since algorithms often use it. Opposite Poles are wicks located behind an FVG. You can use a single pole and the zone above/below it, or the area between two poles. Wicks (Swing High/Low): The majority of stops are usually located above swing highs or below swing lows. These stops provide liquidity before market makers reverse price. (SFP=Swing Failure Pattern) The zone between wicks marks an area where price action could execute an SFP on the nearby swing high or low. An SFP of the major swing high is possible, though price might front-run the most obvious wick. 🔹Image 3: S&R, TL, VP Support and Resistance offer liquidity because retail traders commonly use these levels. Market makers identify liquidity or stop clusters below support and above resistance, similar to how they view trendlines. The Volume Profile shows where most positions were opened. These areas often contain breakeven stops or intentions to exit at breakeven, making them zones that provide counterparty Liquidity for MMs. Value Area Highs (VAH) and Value Area Lows (VAL) are also important levels. If price fails to trade outside these levels, aka as a failed auction, it often returns back into the value area. "Once you see it, you can’t unsee it." -MT