1M Price Action System

Update:
Close the entry book the loss, not as anticipated

Price first decided to take liquidity at sell side, now looking to hunt buy side,
Confluences:
London open
RN 1.3900
Fib level 89

Hi Bilal,

I don't know that 89 is a Fib level

yes it is, below are the fib retracement levels:

23.6, 38.2, 50, 61.8, 70.5, 79, 89

Watch now 61.8 level, how price respects it.

GBPUSD: Rentry:

Hunted SL below the big RN, and comes back in.
RN. 1.39
Fib 79 level


what to target:


some narrative: price stays above yesterdays low and respects the RN1.39 Let see if they go to balance the buys side imbalance taking the liquidity above equal highs in the way or not.

I can say firstly one of the things about the Wyckoff is that one should not be mechanical when viewing the markets - in other words you should not have a system that says if this then this (like in computer programming). The market doesn't work that way and hence you see many systems fail. That is also the same view you should look at the price and volume.

The answer to your question:
1. The price has been moving up and on the way up you start to see widening of the spread (range from low to high) and the volume is high (above average). From the weak hands' point of view they can see one thing - that the price should continue to go up as the spread is showing good signs of carrying on (and possibly on good news). So they will be excited and enter and/or continue buying. So if they are buying who is willing to sell? Of course the smart money. So if the smart money is selling in a rising market that is a sign of weakness (that in the near level price will start reversing and move down). The high volume is more activity from buying and selling. You might also have seen that it is one of the things RickM looks for - the high volume that is above so many times of the average. Reading from Wyckoff's books I would say it seems RickM looks at the market possibly the same way Richard D. Wyckoff looked at tape reading. Of course RickM has access to the Futures data and I think Wyckoff would have used the same data (TradeGuider VSA uses the Futures data).

2. After the Upthrust (or liquidity grab) the low volume can indicate that the smart money is not interested to move the price up and the test of the high of the Upthrust failed as no one is interested to buy. That bar shows a test of demand - if there is any more buyers. So if there are no buyers and the smart money has been selling the price will continue moving down effortlessly (without any more buying and selling activity as there are no buyers) - Supply and Demand. The Context or Background is very important when reading bar by bar in the terms of VSA just as with the Order Block (which has to be at or near Support/Resistance). You already saw a sign of weakness on the move up and the price continued to show signs of of no interest to move to the next high grounds (no demand). At the end you get an upthrust or liquidity grab (sending some traders to the wrong side and taking out some buy stops).

There are some similarities to ICT's understanding of the market and the Wyckoff. For example ICT talks about the (single) Algo and Wyckoff spoke about the Composite Man (when smart money's actions become one united front). I think that is why there is a debate about ICT and the Wyckoff (that is some ICT concepts are based on the Wyckoff).

I hope this answers your questions.

Hi Bilal,

Do you use stop loss and where did you place your SL for the first entry?

no hard stop losss but imaginary, i close manually when it surpass by my OB.

70.50 level

See how price respect levels, isnt it amazing:

61.8 level

buy on a sell candle so price dont come to your entry:

Hi Bilal, I guess you always wait patiently for a liquidity grab on a critical level, right?

The concept is beautiful, yet not clear to me so i have marked some specific volume and bars in my snapshot which confused me and its overlooked in your reply if you can clear on those bars i would learn it more.

Thanks in anticipation.

Hi Bilal,

Can you teach me why you are in buys bias at this time, I see the structure is still bearish (M5)?

why retails SLs got hit, so wait let it hit SL then you enter would be a good entry isnt it?

and how about if it matches to levels, as said banks will not ask to buy at 1.39135 rather buy at 1.39000 is more easy and organised isnt it.

i am scalper so can buy for a short term targeting internal range liquidity, you know one can buy and sell following the money.

The Game is full on, i think we have got the clue of how institution/Smart money trades

Every BOS leads to a retracement, one can use a FIB to measure the retracement of the BOS leg

Update - I have close all position in profit, keeping open the first one at 1.39

When price taken the first internal range liquidity, i felt it will come back to take out the buys i closed all my position and also half from the first trade which is still on.

some may call it fear, yes markets are manipulated i cannot let market takes off my profits. will see something at newyork open.

i could have shorted here to take the internal liquidity of sell side, and keep it at BE


price not ready to go up: i think we have to wait for Newyork open - closed all trades here

You're trading like Reim now, lol, I bet you know who he is! I'm not sure if his trades are real though

lols, Reim who challenge Michael i guess i saw one of his video in wwa course.

i dont know what price wants, after taking the sell side liquidity and below 1.39 price again comes back above 1.39 and if you merge both the sell and buy candle which went below 1.39 of 1min it is a wick rejection, i expect it to take the buy side liquidity now. i hope the momentum/speed remains the same in buy candles for oth liquidity hunt.

booked 8 pips and close half and done BE,
update: BE hit