Modern Trading Strategies Explained

When price hits support, that's not a buy signal.

See, traditional technical analysis teaches you

to buy support

and sell resistance. That's old school trading.

In modern trading like smart money trading, we don't trade levels.

We trade reactions at those levels.

When price reaches this so-called support, we see something different.

We see liquidity. Liquidity is where most retail

traders place their stop losses, usually just below the lowest

point. What do big players do? They sweep those orders.

This move is called a liquidity sweep or liquidity grab.

Now, this is not an entry signal. This gives us a potential

direction. After the sweep, we wait.

What we need now is a zone of interest where we can enter.

Here, when price pullbacks, we can enter and aim for a

high risk reward ratio