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Trading Model: Liquidity & Timeframes

This document describes a trading model that analyzes price movements across multiple timeframes from daily down to minute charts. It notes how price oscillates between external and internal liquidity pools. Key aspects of the model include identifying patterns like market structure shifts and fair value gaps on higher timeframes then looking for confirmation of those patterns on lower timeframes prior to executing a trade. Examples are given showing how the same patterns appear across daily, hourly, 15-minute, and 2-minute charts, providing multiple opportunities to enter a trade. While the document uses this trader's approach as an example, it cautions that trading strategies may vary between individuals.

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Pankaj Lodwal
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43 views6 pages

Trading Model: Liquidity & Timeframes

This document describes a trading model that analyzes price movements across multiple timeframes from daily down to minute charts. It notes how price oscillates between external and internal liquidity pools. Key aspects of the model include identifying patterns like market structure shifts and fair value gaps on higher timeframes then looking for confirmation of those patterns on lower timeframes prior to executing a trade. Examples are given showing how the same patterns appear across daily, hourly, 15-minute, and 2-minute charts, providing multiple opportunities to enter a trade. While the document uses this trader's approach as an example, it cautions that trading strategies may vary between individuals.

Uploaded by

Pankaj Lodwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Ben F

Trading Model
Disclaimer: Not Financial Advice

● Key Elements to understand:


○ Price Oscillates from External Back to Internal Liquidity and visa versus.
○ Price Oscillates from internal to External.

● This Model goes from;

○ External to internal liquidity when we sweep a HTF Liquidity Pool

○ Internal to External Liquidity when we mitigate a HTF PD Array (in this case a
fvg)
● We see here price makes 3 drives pattern into High time frame PD array (in form of
Daily Fvg)

● We then see price create a Market Structure Shift on the same timeframe

● After Shifting the Daily Candle closes are respecting our Breaker Block

● As well the second daily candle partially mitigates the newly created daily fvg

● Now Lets zoom in

2
Here we’ve moved from the Daily time frame to the 1h.

● Inside these two candle candles accumulating on our Daily Breaker Block
what do we notice about the candle closures prior to the move?

○ Candle closures on the hourly are submitting to our BB

● What Else do we notice?

○ Price creates a Lower time frame model as noted by the MSS and the
newly created -1hr fvg annotation.

● Lets zoom in a little further

3
We’ve moved from the 1hr into the 15 minute timeframe.

● What do we notice happening again on this timeframe?

○ Before the move, candle bodies are submitting to our daily BB price
delineation perfectly.

● What else do we get?

○ Another Lower time frame model. This timeframe offers a fair value gap
entry or a BPR sell. As annotated above.

● Lets zoom in one more time shall we…

4
Here we’ve moved from the 15m all the way down to the 2m

● What do we notice AGAIN

○ Price creates another Lower time frame model offering a Fvg entry or
a BB entry.

○ It offers a second entry opportunity where the 15 min entry was on


this timeframe coming back into premium as well as filling in some of
those imbalances in the second distribution.

● This Example is not Cherry picked you can go find a trade breakdown with
execution of this trade at that tweet.

5
Final Notes

This Model can start and end on any time frames of your choosing. You do not need to go
all the way down to the 1-5 min if it does not suit you or you don’t have access to the
market that regularly throughout your day.

Trading is not a one size fits all so even though this works well for me, try it out backtesting
and forward testing to determine if it is helpful for you. Speaking to that, this concept of
Sponsorship vs Execution time frames applies to all strategies, not just this model.

I hope this was helpful to those who stuck around long enough to get all the way down
here. If you have any questions please feel free to ask on twitter, send charts and trades.

Goodluck on your journey,

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