WHEN TO EXPECT HIGH RESISTANCE LIQUIDITY RUNS? Thread πͺ‘
1) If the DXY is risk on or risk off
2) If the market narrative is going against the HTF bias.
3) If the DXY is in a range or consolidation
1) If the DXY is risk on or risk off
2) If the market narrative is going against the HTF bias.
3) If the DXY is in a range or consolidation
1) -If DXY is trading higher, it's a Risk-On scenario. That means Stocks and Foreign Currencies should trade lower.
-If DXY is trading lower, it's a Risk-Off scenario. That means Stocks and Foreign Currencies should trade higher.
-If DXY is trading lower, it's a Risk-Off scenario. That means Stocks and Foreign Currencies should trade higher.
-When selling Stocks and Foreign currencies we want Bullish market structure for DXY
-When buying Stocks and Foreign Currencies we want Bearish market structure for DXY.
-When buying Stocks and Foreign Currencies we want Bearish market structure for DXY.
2) Often times when bearish there will be retracements into imbalances or short term highs for stop runs. These βcounter trendβ moves might not move as freely therefore creating a high resistance liquidity run.
(Viceversa)
(Viceversa)
3) When price is constantly moving up and down in a range bound on DXY, we want to see what side of the market when it comes to Stocks or foreign currencies moves easier or more freely. Pair that up with Market Structure, Narrative and or Bias.
It is very important to identify the Markets Condition and act accordingly.
Sometimes staying in the sidelines and speculating is the best thing to do.
Trade Safe!
Sometimes staying in the sidelines and speculating is the best thing to do.
Trade Safe!
Sometimes price might not follow these rules and that creates high resistence liquidity runs.
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