Assignment Crypto Academy Season 03 - Week 06 | Advanced Course - Trading Liquidity Levels The Right Way [@cryptokraze]

This is my submission for the Assignment provided by Professor @cryptokraze . The lecture was an extension of previous 2 Concepts such as Breakout Retest Breakout(BRB) and Market Structure Break (MBS) which was already explained in previous classes. I am sure you have see this message often like Liquidated Long: 358K Contracts at $37,858 or Shorts these are the liquidity levels where most of the stop losses placed.

1 - What do you understand about Market Structure?

As per my understanding market structure is nothing but the price momentum of the asset and this moment is being created by the result of the fight between Bulls and Bears. The market always moves in a structure like Uptrend, Downtrend and Sideways market. The sideways market is also known as consolidation phase of the asset where the fight between the bulls and bear is almost same and no one is winner.

a) UPTREND In uptrend market the Bulls are really strong and they used to win every time when Bears try to pull the price down. We can always see pullback/retest in the trending market that is nothing but the fight against the opponent and whoever takes control price moves according to that. In the uptrend the price creates Higher high and higher lows. You can see the example-

b) DOWNTREND In the downtrend market the price used to create Lower high and lower lows. This works opposite to the uptrend market where Sellers are strong and able to push the price down every time.

c) Sideways- This is indecision phase because here no one is enough powerful to push the price in a direction. This is also called as consolidation phase and once the price breaks any side with good volume we can get a good target. I like breakout trades specially when the price is breaking the range.

2 - Explain the reasons why traders got trapped in Fakeouts. Provide at least 2 charts showing clear fakeout.

The main reason I believe in the patience is the key and that is the reason most of the traders got trapped in Fakeouts. I also used to be one of those traders to get into the FOMO (Fear of Missing Out) and take entry as soon as it crosses the resistance level. After a loosing a lot of time I realized buying on the Retest is the safest option for a trader.

One more reason is big players like Institutional investors and Exchange owner knows very well where is the maximum stoplosses and they manipulate in such a manner so that you will be rekt. I am fan of breakout trades what I used to do is whenever I see the breakout I enter with 25% money and once it successfully going in my direction after the retest I add rest 75% money into the trade. Here I am not into FOMO and even if price goes up without retest I will not have any regret even if I will be wrong I am going to loss small but if I will right then I will win big.

Let me show you some chart example-
a)- Look at the today's BTC chart on 15 min timeframe. The importance levels or 35.4k, 37.4k, 38k, 40.6k, 41.2k, 42.2k. In the below picture you can clearly see that the price is rejecting from 42.2k level and on the 4th it broke but sadly it was a Fakeout. The price should go up after the retest but it failed.

b)- Here is the very important resistance of BNB at 344 and you can clearly see how it given a fakeout.

3 - How you can trade the Liquidity Levels the right way? Write the trade criteria for Liquidity Levels Trading (Clear Charts Needed)

As the professor already discuss in the class that Liquidity levels are nothing but Swing high Swing low, Support-Resistance. I am going to BRB strategy to take entry on the Liquidity Level and also I will add my own way to take breakouts trades.

Buy Setup
Here in this chart you can see that 33.4k and 32.4k are important levels or Liquidity levels. I entered on the retest which is the best and safest entry point. I easily got 1:1 target here.

Sell Setup
Here I took entry at the rest and it boom I got 1:1 easily.

4 - Draw Liquidity levels trade setups on 4 Crypto Assets (Clear Charts Needed)

As we already know that Liquidity levels are nothing but important levels where the price faces some kind of Support or Resistance. I would like to show the liquidity level of the Father of all crypto Currency BTC.

a)BTC Here is the important levels for btc 28.5k, 30k, 31.5k,32.4k, 33.4k, 35k, 36.2k, 37.4k etc.

a)BNB Here is the important levels for BNB 270, 280, 290, 300, 322, 335, 344, 360, 370 etc

c)ETH Here is the important levels for ETH 1750, 2040, 2160, 2255, 2450, 2620 etc.

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d)LINK Here is the important levels for LINK 13.50, 15.50, 16.20, 17.50, 20, 21.30, 23.90, 28.40 etc

Conclusion

The session was really full of knowledge and I enjoyed learning things in the simplest way and also implementing in live trades. Also I would like to share my way of trading Breakout trades so above I have already explained that I will take entry in 2 parts 25% at the time of level break and 75% on the retest. So even if the price moves fast upside/downside without any retest then I won't have any regret. This method is for Aggressive traders and on the rest I will even decrease my stoploss to reduce the risk.

IMPORANT The more number of attempts to break the level or consolidation before the breakout trends to real breakout.

If you have any query then feel free to discuss with me in comment.

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Don't get Stressed, Stay Blessed.

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