LIQUIDITY GRAB STRATEGY

HIGHER TIME FRAME BREAKOUT

The Liquidity Grab Strategy is for the major FX pairs only, primarily EURUSD and GBPUSD

The optimal execution time for this strategy is during the London Open Kill-Zone (0200EST-0500EST) or the New York Open Kill-Zone (0700EST-1000EST).

Only trading during KZs will greatly improve your win rate. Swing highs and lows are formed within these windows most of the time. Data releases during these KZs act as a catalyst for set ups.

We are interested in all HTF Breaks of Structure (BOS), we then drill down to a LTF to locate a Liquidity Pool.

FVGs are an area of liquidity. Price delivers to this area to pick up liquidity and distributes this liquidity to willing buyers/sellers above/below old highs/lows.

For example, if a previous YEARLY HIGH / LOW is raided, price action will pullback and fill the nearest WEEKLY FAIR VALUE GAP (FVG) or IMBALANCE .

The same applies to the lower timeframes as follows:

  • MONTHLY HIGH / LOW = DAILY FVG
  • WEEKLY HIGH / LOW = H4 FVG
  • DAILY HIGH / LOW = H1 FVG
  • H4 HIGH / LOW = M5 FVG
  • H1 HIGH / LOW = M1 FVG

The ASIA and LONDON HIGH / LOW are usually the same as the 4H HIGH / LOW.

The OHLC of the previous HTF candle will give you all the context you need for a bias. Wait for the previous HTF candle HIGH or LOW to get raided, then pick your LTF to execute on & create a blueprint for entry & invalidation.

EXAMPLES OF LIQUIDITY POOLS

  • Previous Monthly High / Low (PMH / PML)
  • Previous Weekly High / Low (PWH / PWL)
  • Previous Daily High / Low (PDH / PDL)

STRATEGY

  1. PMH / PML or PWH / PWL Raid
  2. PDH / PDL Sweep (BSL / SSL Taken) @ Origin of move (High / Low Candle)
  3. Daily Market Structure Break (MSB)
  4. Return To Breaker (RTB)
  5. SL @ 1R – Origin of move (High / Low Candle)
  6. TP @ 3R – 50% HTF Candle or HTF HL

In the following EURUSD example, the ASIA and LONDON / 4H HIGH are raided before price collapses to the downside in the NY SESSION filling the 5M FVG IMBALANCE.