Understanding Market Liquidity Changes

If you want to stop being the liquidity, you need to learn when the market changes direction. See, price is always delivering in a state, either bullish delivery or bearish delivery. And before any real directional move begins, that delivery state has to change. This is what we call a change in state of

delivery. This is the moment the algorithm switches from one state to another, and this does not happen randomly. It always starts with liquidity, which is raided at the correct time. That raid completes the current delivery

cycle. So how do we spot a change in state of delivery? Let's look at a bearish example here. After liquidity is raided above the high and price drops lower, we see the market breach the opening price of the up close candle that

raids liquidity. When this happens, the algorithm will order a change in state of delivery where the program will switch from buy-side delivery to sell-side delivery. That is the job of an order block, hence the name. The change is further confirmed when price displaces lower and leaves

behind a fair value gap. That fair value gap is paired with the bearish order block that sets up a high probability short entry to target sell side liquidity at the lows below. This is how smart money gets positioned early.

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