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Trade With The Trend And Watch Out For Liquidity Sweeps

Education
FX:AUDJPY   Australian Dollar / Japanese Yen
Hello traders

In this example, we will explain how to trade with the trend and use liquidity as an additional confluence.

1) Price makes a new higher high, momentum is present.

2) After momentum, the price begins to create liquidity, as we talked about in one of the previous posts. Liquidity is a trap for retail and other traders.

3) We see that this is precisely why the manipulation took place, liquidity was picked up, and then the price moved impulsively towards the uptrend.

4) Price creates a new demand zone and impulsively continues bullish again. We see strong momentum.

5) In this situation, we see an excellent trend, we know that the price wants to continue bullish.

6) The price creates liquidity again and at one point, manipulation occurs again, we see a liquidity sweep, and the price from our zone impulsively continues to the uptrend.

- In the next post, we will show you this example on a chart so that you can better understand this concept.

- This is all about today's example, if you liked it, leave a like and write below in the comments if you have any questions.

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