6. Liquidity Pools Flashcards
1
Q
What is the liquidity, in this context?
A
It is a price where the market maker has opened longs or shorts, and where we anticipate at some point in the future they will go and revisit these points
2
Q
What is the most important indicator to look at?
A
The developing candlestick
3
Q
The four candle types
A
Red, tick volume is highly above average
Green, tick volume is highly above average
Violet, tick volume is starting to rise
Blue, tick volume is starting to rise
4
Q
On the green candle, what is happening?
A
MM is opening new shorts and closing previous longs
5
Q
How find the liquidity pools based on candlesticks?
A
Look left for matching high-colume candlesticks
6
Q
The unresolved liquidity that we see allows us to do what?
A
Accurately project the future movement of price
