Liquidity Academy W

Liquidity & Manipulation – Forex

Liquidity is the definition of a Market, which contains a constant flow and participation of Buyers and Sellers. The forex Market is very Liquid because of the constant flow and participation of the volume created by terms and conditions as Volatility, Sessions etc. A Market such as Real Estate is one of the most Illiquid markets there is as the constant flow of Buyers and Sellers isn’t as consistent as the Financial Markets. It is extremely easy to go in the markets and start trading whereas house-buying is long process before proceeding. The Financial markets should be processed and viewed the same way as the Real-Estate Business Lords have created, but manipulating Newers and triggering them into Early-Investment is a Bank-Strategy and a approach that should be completely Reversed (Reversal) from the actual Beginning from a personal Trading Journey.

The concept of Liquidity is Crucial because it is the secret force of the Markets Derivatization and helps the BFI’s execute their massive market orders.

For us (Retail/Retailed Traders) the concept of liquidity is crucial to understand, but not a general problem for us. We can execute our orders anytime, when opening our platform & pc whereas the general Lot-sizing is between 1-100 (Depending on your Capital).

Imagine being a Institutional Trading-Bank like Citibank, their Platform can unlike us, when trying to place a 100.000 Lot Size Single Trade (Contract), can say ‘Not Enough Liquidity available to execute your order’’.
This forces the bank to either wait for the Market by Volume & Volatility to have generated enough Liquidity for them to be able to execute their order.
Or create it by their own. Manipulation.

The banks love liquidity and in the market, it is possible to spot the Liquidity Pools-Areas-Zones. Almost always, the bank forces themselves, to create it on its own. How?

By Manipulation every Buyer+Seller order they can, to their favour. Meaning?
Make everyone lose as much as possible, as fast as possible, and when losses are confirmed = Liquidity Generated.

-          Liquidity points are used by the BFI to get enough counter orders to theirs, so their order/orders can get filled. As stated before, this is done by taking other peoples, mostly retail traders as they are easier to define, Stop Losses, Limit Orders, Stop Orders and generally Tricking them into Buying and Selling against their favor. Manipulation.

-          Liquidity Grabs are a form a recharge Mechanism as the banks can’t always, whenever wherever they decide, generate liquidity. The Market CANNOT be pushing upwards/downwards forever. It Needs Liquidity to Recharge. That’s why we have terms and see things in the market, such as MSB-BOS, Pullbacks, HH-HL-LH-LL, and all of the things which is defined as Market Structure.

Volume & Volatility & Market Structure are NOT the same things as should be analysed separately and differently.

Liquidity-Marks/Points to be found in the Market.

·       Market Structure and its foundation is a Liquidity Mechanism. The Banks are most common liquidity providers in the Forex Market and are the most well-known.
News also creates Liquidity. When the Market the last Friday of every month at midday, explodes either Bullish or Bearish Direction, for itself to often but not always, pull itself back.

·       Manipulating Price to create a ‘False Move’ (Fakeout) is a Bank Strategy. This is known as Trendline Direction, such as for example, Reversals or Strong Market Momentum Moves.

·       Supply & Demand and Cause & Effect Laws also exist digitally. Especially, in the financial Markets.

·       Reversing and Reversal are the hidden Jackpots of spotting Elite Trades (entries).

·       Reaction and its zones often connects to Support & Resistance Levels as the normal trader are telled, informed and learned that this is a key level. It is but it is also not. 

The Banks Agendaes.

Remember that every hidden Agenda always has a tell.
Flush.

This is key points which the Banks Has to bear in mind, but we don’t as retail/normal traders.

Remember the difference between a normal civil bank, and the Trading Banks. This is a mixture of both.
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