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Liquidity Gaps and Spike Removals

by on May 5, 2011 with 15 Comments in Markets , Patterns , Strategy Tank , Technicals , Videos

 

Video notes:

Liquidity gaps can be vary valuable in both dissecting price and distinguishing major reversal points or price targets.

When using as a meter to take profits, do so when gap risk becomes considerably lower, at the base or origin or the spike.

Trade in line with the prevailing, underlying trend.

Use as a guide of knowing when to stay out, or be patient for better risk / reward.

Know how to identify the four major types of gaps, which ones fill and which ones don’t.

Don’t “fudge” the setup.  If things don’t line up or are ambiguous, this is probably the case to everyone else.

Applicable to all time frames; concept is still very much the same.

Learning and successful application are two very different things.  Filling the gap between them takes time based on your own effort, diligence, sensibilities, etc.


 

293 days ago by in Markets , Patterns , Strategy Tank , Technicals , Videos | You can follow any responses to this entry through the RSS feed. You can leave a response, or trackback from your own site.

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  • David

    Talking about liquidity gaps, that euro has some big gaps. Although it wouldn’t be rational to fade this sharp move.

  • http://www.consult-fx.com Rob

    Steve,

    Good material and very well presented – clearly & concisely.
    Great work!

    Rob

  • Ingmar

    Wow Steve nice to see of the good stuff again love to read your post thanks!

  • Mike C

    Excellent video, I especially liked the live chart at the end and the description of how, where and why to look for opportunities to trade.

  • Aaron

    Steve,

    Thanks for this very helpful video; anymore suggestions or resources for learning more about Gaps (including Sam Seiden)?

    Thanks,
    Aaron

    • http://www.nobrainertrades.com Steve W.

      Hi Aaron,

      This is one of those topics that rarely gets mention yet deserves some extreme attention, so in terms of other items I can’t say for sure. I know Chris L. (resources section) was covering it as of late but other than that no. If I find anything, though, I’ll get it posted. Thanks

    • http://www.consult-fx.com Rob

      Aaron,

      You can find links to 26 Sam Seiden videos on Supply & Demand here:
      http://consult-fx.com/26-sam-seiden-webinars

  • Pingback: Interview With Steve From NoBrainerTrades.com | FX Trading Blog - innerfx.com

    • Arturas

      hey Steve,

      awesome video and crystal clear explanation! You’re improving.. hehe ;)

      have you ever tried these on higher TFs? like weekly? daily?

      also is it possible to get that slide with 4 types of gaps and expanations?

      Thanks for great video!

  • Daniel

    Great video. Thank you for taking the time to make it and explain this. This ties in so well with S/R and it was great when you mentioned orderflow too.

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  • Ingo

    Hi Steve,

    how is it possible or how do you pinpoint the start of the liquidity gap – or even the bottom of a bucket (same in many cases?)?

    Thanks!

    • http://www.nobrainertrades.com Steve W.

      Hi Ingo, you are just basically looking for the origination of where the spiking activity began. You’ll likely see some consolidation directly ahead of it, and then a quick move to the upside or downside. Wherever that quick move originates from is basically used as a reference point.

  • http://www.twitter.com/orofx1 OroFx1

    Hello Steve,
    Your video and explanation are very nice and easy to understand, appreciate it. How can we identify the gap category as it is happening, I mean after viewing some charts its easy to identify the gap category after the fact but how can we at least try to tell when the spike is happened if the gap will fill or not.

    Thanks
    Oro

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