Core Month 01 07 Liquidity Runs - newsqlguru/ict-index GitHub Wiki

ICT Mentorship Core Content - Month 1 - Liquidity Runs

Liquidity is the degree that an asset can be bought or sold without drastically affecting price.

High Resistance Liquidity Run (HRLR)
- Lots of old highs/lows.
  - A step up/down pattern with lots of short steps.
- These are considered highly defended when stops are at the bottom or top of the HRLR.
- We are not looking to trade HRLR.
Low Resistance Liquidity Run (LRLR)
- We are looking for Low Resistance Liquidity Runs for our trades.
  - A large one sided step up/down.
- These are undefended when stops are at the bottom/top of the one sided price action.
- Look for low or high before the LRLR as a more defended level and look to exit any trades before hitting this level.
- Once the market trades below the swing high/low after LRLR, we have a good chance at a faster bigger price move.
  - We don't know the direction of the move.
- Wait for the swing high/low after LRLR to enter the position when the swing h/l is taken.
- Look for levels where there is a lot of price action, these will be HRLR there will be a lot of PA a these levels, then price will move away from these levels in a dynamic one sided direction creating a LRLR, these are what we trade with very little resistance and very little drawdown.