Big Osmond!
Big Osmond!

@OsmondSabby

20 Tweets 204 reads Sep 18, 2023
๐Ÿšจ
THIS IS WHY I AM CALLED THE KING OF LIQUIDITY SWEEPS (STOP HUNT KING) ๐Ÿ˜Œ๐Ÿ‘‘
Anticipating Liquidity Sweeps
(A Thread ๐Ÿงต)
Before I proceed, I'd like to make it clear that NO ONE has ever called me the King of Liquidity Sweeps.
However, my entire trading model/approach is based around the idea of Stop Hunt/Liquidity Sweeps.
Infact, I dedicated a telegram channel to sharing insights on how I trade.
Join Here ๐Ÿ‘‡๐Ÿผ
t.me
It's an awfully painful feeling watching price move in your expected direction just after hitting your stop loss (SL).
If you've ever been caught up in this type of situation, it simply means you've been a victim of a Stop Hunt.
"A stop hunt is a situation where the price of a currency pair suddenly moves in the opposite direction of a traderโ€™s position, hitting their stop loss order and triggering a loss."
forex.academy
In my bid to stop being a frequent victim of Stop Hunt, I spent months studying how IPDA engineers Liquidity Sweeps.
I found a way to anticipate these sweeps before they happen and also capitalize on these price manipulations.
There are two things you must understand about Liquidity Sweeps.
1. Price sweeps specific highs and lows.
2. Reversals typically occur after these sweeps have taken place.
It's important to have these two factors in mind and I'll show you why in a bit. Keep reading...
1. PRICE SWEEPS SPECIFIC HIGHS AND LOWS.
Price hunts stops above specific highs and lows, these highs and lows includes:
- Previous Day's/Week's/Month's highs and lows
- Sessions Highs and Lows
- Inducement Highs and Lows
Price seeks to hunt the stops that rest above and below previous Day's, Week's and Month's Highs and Lows.
Price sweeps Liquidity that rests above and below trading session's highs and lows.
Here ๐Ÿ‘‡๐Ÿผ
Inducement Highs and Lows form close to tradable POIs. Price comes back to sweep the Liquidity above and below these highs and lows.
Here ๐Ÿ‘‡๐Ÿผ
Now, knowing how to spot these specific lows and highs is cool but this alone doesn't guarantee catching high probability trades.
There are alot of highs and lows on the chart. Which High/Low will price seek to sweep? ๐Ÿค”
2. REVERSALS TYPICALLY OCCUR AFTER THESE SWEEPS HAVE TAKEN PLACE.
Price usually reverses after hunting stops. How can we capitalize on this idea? ๐Ÿค”
We simply study the times of day and days of week that have the highest probability of price reversals.
Simple questions to ask and answer:
- What times of day will most likely form the High and Low of the day? (Highs and Lows are the bedrock of reversals, know when they'd most likely form and you'll have the key to catching reversals)
- What day of the week will most likely form the High or Low of the week?
I am a Day Trader.
I trade Liquidity Sweeps (Reversals).
I take my trades during the ICT Killzones and never outside of these times.
I understand that the High or Low of the week has a 70% chance of forming on Tuesday so I frame my Intraday reversal trades based on this idea.
The key to catching these sweeps is understanding the times when it's most likely going to occur, during these times, you simply wait for price to violate a specific high or low and you go on to trade the reversal.
Final note: You will have an even greater success rate if you take trades that are inline with the Higher timeframe Orderflow and Market Structure.
Was this thread insightful?
Let me know in the comments ๐Ÿ‘‡๐Ÿผ
Also follow, turn on post notifications and repost for others. ๐Ÿฅ‚
Do check out my Thread Library for more quality threads on Technical Analysis ๐Ÿ‘‡๐Ÿผ

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