A Liquid Supply and Demand Analysis on GOOGL

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What we're trying to do as traders is identify what the market is setting up for us and why its setting up that way - that will tell give us insight into what could and should happen from there based on the chart's "story" of:

1. Where are the HTF and LTF liquidity levels and supply and demand zones i.e. where are the buyers and sellers located and who needs to gather more steam before moving in the direction they want. (In a long term uptrend, buyers are constantly picking up steam by allowing a relaxed and controlled selloff and building liquidity at steadily more accepted prices and setting up support at higher and higher levels. Sellers would be allowing for healthy pullbacks (controlled buying and liquidity building) to set strong resistance levels at previously broken support levels (sell orders) at those controlled pullbacks) - Hence the higher highs/higher lows of an uptrend and lower lows/lower highs of a downtrend - It is just a bunch of supply and demand levels being created and broken within higher time frame supply and demand levels - Until enough liquidity is built on the LTF so that the HTF levels can be broken.

2. What does the "why" tell us - Who is in control of building the liquidity and why are we doing it this way or what about the way that it is getting built can we decipher where it may need to go. (With confirmations, we are given indications as to whether the HTF move that we want to trade is actually happening or if it's just continuation of the LTF liquidity build. This is where our algorithms come in handy because they are the market's guide to where the liquidity lies (you'll see that on breaks of trend lines, we make a big move because we're grabbing all the liquidity that was built up within the trend line that were now break out of. This in addition to the control algorithm which is guiding the "fair price" to get back in off the pullback and liquidity build and also syncs neatly with former support and resistance levels created.

3. Utilizing Multi-TF-Analysis, we can identify subsequent moves based on the available liquidity levels that were created (purposely) and look for confluence between S&D levels and created and controlled liquidity built.

Our toughest job as traders (analysis and execution wise) is to see all this information and put it into a multi-dimensional story that we can always be in the know and understanding of what's happening within our story so as to not get bogged down by liquidity building or indecision. The real challenge and key comes in deciphering each time frame's analysis in a top-down approach (longer term --> shorter term) so that we are ahead of the right move and not a part of the "controlled liquidity build" but rather of the side that is in control on the time frame that we're actually executing on. (An example of what I mean would be going long on GOOGL here as if the current shorter term bull-trend has built enough liquidity and set enough strong support and leaving out the HTF information such as supply above and demand below which was based on the HTF story).

I know this might seem confusing but if you start plotting this out visually on your own and reason with why price is doing what it's doing at certain levels (VOLUME).

Really hope this was helpful for anything looking to deeper their understanding of how liquidity is identified, why it is built, and how we can utilize this information in order to tell the chart's story and essentially see the roadmap ahead.

Happy Trading all :)
Giao dịch đang hoạt động
We are active on GOOGL shorts after rejections at our LTF supply zone and strong selling algo yesterday and clear controlled buying within our teal buying algo.
Bears have now set themselves up for a sustained move and break through LTF liquidity that was built and to head toward HTF demand below.

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Đóng lệnh: dừng lỗ
We've pushed our way through LTF Supply and our making our way toward HTF Supply at the $176-179 zone. Looking for the current flip zone to allow for further bullish buying (still within our controlled buying liquidity build) and to reenter a short position if we see a bearish reaction at our HTF Supply.

ảnh chụp nhanh
Beyond Technical AnalysisSupply and DemandSupport and Resistance

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