Master Liquidity Strategy: Order Block & Break of Structure Explained! 📈💡
1. Liquidity Sweep and Break of Structure (BOS): The strategy initiates with a sweep below key levels to target buy-side liquidity, where price moves below a prior low to trigger stop losses, creating liquidity for larger moves. A Break of Structure (BOS) confirms the shift in market direction after the liquidity sweep.
2. Order Block Identification: Once the BOS occurs, identifying the relevant order block becomes crucial. This order block represents the last point of institutional activity (buying or selling) before the BOS, serving as a strategic entry point for the trade.
3. Targeting Upside Liquidity: After entering from the order block, the trade targets the upside buy-side liquidity. The goal is to capitalize on market inefficiencies and liquidity imbalances as price retraces toward higher liquidity areas, optimizing risk-reward potential.