Elijahenoch7

Smart Money Liquidity Grab Or Shift In Market Structure?

Education
OANDA:US30USD   US Wall St 30
Look at the Us30, and GBPUSD charts attached to this post, what do you see????

GBPUSD
US30USD

GBPUSD


Do you see a shift in market structure or Liquidity grab by smart money algorithm?

In financial market trading, one key to determine where the liquidity that the market will run next is located is to ask yourself who are those making money from the current move....
Where are they likely to trail their stops to.

Whatever your answer is, that is the liquidity the algorithm will most likely run first to continue in the intended direction...

In the charts examples attached to this post, market was bullish, then the smart money algorithm drive price lower to break the recent and obvious recent swing low to take out all the sell stops below that low, and induce new traders to go short thinking that the market is now bearish.

But price rebalance in imbalance below the lows and then push higher.

That is a smart money liquidity grab not shift in market structure.

With this understanding, you should now be able to understand that not all structure shift in a bullish or bearish market is a shift in market structure.

The majority are liquidity grabs by smart money algorithm.

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