Liquidity Grab/Run/Purge

Liquidity Grab/Run/Purge from the previous periods

Liquidity Grab/Run/Purge

In the following example I will discuss:

• YL: Yesterday Low

• YH: Yesterday High

• WH: Previous week High

• WL: Previous Week Low

Commercial banks provide liquidity

Commercial banks provide liquidity, so often price will create a fake move and perform a liquidity run. Typical areas for the liquidities are above or below the previous days/weeks/months highs or lows because of those early market entries and pending orders for breakout traders. From the example, we can see, either price pokes through the key levels, gets rejected from a level and pulls back or breaks out to make a continuous move, if the price already performed a liquidity run.

(similar idea for the session highs/lows, market opening highs or lows)

Key levels are

• Daily/weekly/Monthly Open

• Yesterday/ Last week/ Last month highs/lows (also denoted as daily, weekly or monthly high and low)

• Daily or Weekly Close ADR (AWR/AMR) upper and lower level Double top or Double bottom

• POC (Point of Control)

Indicator - Onsen FX Algo

the blue lines are the previous day's highs and lows, and the red lines are the previous week's highs and lows.