Liquidity (BSL/SSL)

Identification Rules

How to spot liquidity zones where stops cluster. Key levels that attract price.

  • Mark swing highs for BSL identification
  • Mark swing lows for SSL identification
  • Identify Previous Day High/Low (PDH/PDL)
  • Identify Previous Week High/Low (PWH/PWL)
  • Identify Previous Month High/Low (PMH/PML)

Stop Rules

Where to place stops below/above liquidity zones. Risk management guidelines.

  • Place stops beyond liquidity levels to avoid getting swept

Target Rules

How to target opposite liquidity or key levels. Setting realistic profit goals.

  • Target opposing liquidity levels after liquidity grab

Confluence Factors

What strengthens liquidity setups. Multiple factors that boost success rates.

  • Multiple timeframe liquidity alignment
  • Equal highs/lows creating liquidity pools
  • Volume at liquidity levels

Failure Modes

When liquidity sweeps fail to reverse. Scenarios where price keeps running.

  • Liquidity not cleared
  • False liquidity grab

Common Mistakes

Avoid chasing sweeps and poor timing. Frequent errors traders make.

  • Only looking at one timeframe for liquidity
  • Placing stops directly at liquidity levels
  • Ignoring the context of liquidity sweeps