The Only Liquidity Video You'll Ever Need

0:00 I've been trading for 14 years. Earlier this year, I broke the world record for the largest profit payout of $2.5 million. And if I were to start over from day one, I would have focused on mastering one concept, the swing failure pattern. Today, I'm going to break down the basics, common mistakes, and teach you the most powerful tool I still use to this day. Now, let's get into what a real swing failure looks like. All right, so the first thing we actually need to know is we need to understand what swing points are. Now, what are swing points? Simply put, a swing low is a candle where both the candle before it and after it have higher lows. And a swing high is a candle where both the candle before it and after it have lower highs. So in this example, we have three candle a three candle pattern. We have a down close candle which creates a low and then we have a lower low and then a higher low. So this second candle here

0:45 becomes a bullish swing point and vice versa. For a bearish swing point, we have a high, a higher high and a lower high. So on the lower time frame, this is actually a low time frame reversal. Now, it's important to understand what swing points are because in a bullish market environment, you will consistently see swing lows being put into place and that usually gives you an idea where the market is going to continue in that specific direction. And on the other hand, if we're in a bearish market environment, we are going to consistently see swing highs being put in place and the market continuing lower. So, overall, if we look at a higher time frame and we see swing lows being put into place and the market is overall bullish, you can anticipate that the trend is going to continue higher. So, what I typically do that helps me determine buys for the next day, I'll sit down at night and plot out all of the swing points. Now, when these swing points are being created, just

1:31 understand that there are traders that are entering the market that are going to put their stop losses below bullish swing points and above bearish swing points. Now, when they do this, this creates liquidity in the market. And the two major drivers of a market are liquidity and order flow. So as new swing points are being created in the market just understand that there are more and more participants that are possibly entering that market and generating liquidity because they are placing orders in the market. So even if they market enter into a trade they are setting additional orders at their stop-loss and take profit. Now again this is a very important foundational piece in your trading to understand which direction the market wants to go overall. And I just want to point out that swing points aren't yet confirmed until the third candle closes. So if you see a low being put into place and you

2:18 see a a higher low on the next candle, but that candle is still trading, it is not a confirmed swing point until that candle closes. So for example, let's say each one of these candles is an hourly candle and we have the closures of the first two candles. So let's just say that this third candle is still printing, right? There's still time left for the candle closure. You know, that might be anywhere from 59 minutes all the way down to 1 minute left. Now, a swing point is not confirmed until this third candle closes. And I've seen many many times where the last 5 or 10 minutes this candle might reverse and then print a lower low in which case we will not have a confirmed bullish swing point. So just make sure when you're trying to identify swing points in the live market that you're waiting for that third candle to close before you actually identify that this is a bullish or bearish swing point. All right, so

3:03 now you can mark your swing highs and lows. That's your foundation. But here's the thing. Swing points alone, they won't tell you where to enter a trade. Now, what you need to know next is how to spot when a swing point is setting up to fail. Now, there's a repeating pattern that happens before these failures. And once you see it, you'll never look at these swing points the same way again. But before I get into that, I've used this next concept to break the world record at Apex. Now, if you use the code J at checkout, you'll get 80% off all eval. I'll also leave a link down in the description. So, what is this next concept? It's called the swing failure pattern. And a swing failure pattern happens when price breaks a previous swing high or low. It triggers the stops or breakout traders and then quickly reverses back inside the range. So it indicates that the breakout is failing and that failure is the signal. So as we can see here, we

3:49 have our old bullish swing point and you guys can see here that this next candle took out this previous swing point. So just imagine that anybody that got long on one of these candles, they put their stop loss down here. Now, this candle here is coming in and triggering all the stop- losses of these traders that went long. And same thing here. If traders got short, they're going to put their stop losses above this swing high. And this candle right here is going to come and trigger all of those stop- losses. Now, what is the failure? Typically, when we get a closure back inside of the range, so just like I mentioned, this next candle, you know, if there's still time left, you need to let this candle finish out and close to see if it's actually going to reject the low and close back inside of the range. So, if there's any time left in this candle, you have to let it close to confirm the pattern. Now, what we're going to do after we get this closure and

4:34 confirmation is we're going to anticipate the next couple hourly candles to print in the opposite direction. And this is where you're allowed to drop down into the lower time frames to find your specific entry model. Now, why are swing failure patterns so important and why are they such a prevalent part of my trading? So, what do they actually indicate? Okay. And a swing failure pattern or SFP shows you where traders got baited and then punished, which usually means smart money is taking the other side of the trade. And that's exactly what we're trying to do. Okay, as a trader, you're trying to trade like the counterparty to most retail traders because as we all know, you know, 85 to 90% of retail traders are losing money in the markets. So, what you're trying to do is actually enter where they're getting stopped out. Now, what I used to do and the way that liquidity raids or turtle soups are

5:20 taught is that you're supposed to just go long as soon as we take out a previous swing low. Now, the problem that this causes is as it's breaching the low, it's very hard to identify where do I put my stop loss or where do I enter? Because what happened to me for many many years and I lost thousands of dollars doing this. But I be I would enter as soon as we would lose the low and I wouldn't know where to put my stop loss. And unfortunately that market just kept trading lower and lower and then eventually it might have turned around reclaimed the low and by then I'm already stopped out for the day. I've already hit my max loss. So instead of just trading liquidity raids or turtle soups, I added this filter as a confirmation. I waited for the next candle to get a closure back above the range before I started hunting on the lower time frames. So, just as a quick exercise, I'm going to run you guys

6:06 through price action on NASDAQ from the beginning of December to show you how many times these swing failure patterns appear and how many trades actually come from them. So, as you guys see here, I've marked out this swing high and this swing low. On the following day, we run out that swing low. And let's say you can even mark out this swing low here. Once we get the closure back into the range, we're looking for a a continuation move just on the next couple candles. We don't need to anticipate that it's going to run all the way to this liquidity because we're going to trade on the lower time frame and we're really only trying to take advantage of maybe 2 or 3 hours out of this trading session and then we're done for the day. So what do we have? We have this swing failure pattern. So we get a raid on the low. Again, we're not trying to just trade as soon as we take out the low. Okay? Cuz again, let's say if you just wanted to go long as soon as we take out this swing low. So, just as an

6:52 example, and exactly what I talked about before is we don't want to just go long as soon as you take out a swing low because as you can see, we take out this swing low. But if you were to enter long as soon as it takes out that swing low, you might have gotten stopped out because maybe you put your stop loss below this swing low, right? And it just keeps running down to that level. What we're waiting for is a rejection of these swing lows. And we don't get that until this candle closes. Okay? So, this specific hourly candle could have been trading up and down this entire hour. But as soon as it closes, that gives us the confirmation that this is a swing failure pattern. And what we're going to do on the next candle is we're going to anticipate a long entry on a lower time frame using whatever entry model you want to use to position ourselves for maybe the next 2, three, or even 4 hours. Okay, so we even have a shorter term swing failure pattern. Okay, so maybe we have a PM session trade. And so

7:38 we have this candle that creates a swing failure pattern. And then we're going to start hunting on the next couple candles. Okay, maybe this candle stops you out. But the next couple hours, right, 2 3 4 5 hours, we get that retracement back into the range. The following day, we have this old swing high. You guys can see here that we've raided it and then gotten a nice bearish closure. Okay? So, when I'm looking for swing failures, I actually like seeing bearish candles after taking out swing points, right? And vice versa. I like seeing bullish candles after taking out swing points. So, just because we get a swing failure pattern doesn't necessarily mean that we're trying to go long straight away. All right? A bullish candle after taking out lows is much better than a bearish candle after taking out lows. So here again we get a nice swing failure pattern and then the next couple hours right get 1 2 hours that are bearish. And honestly on an intraday basis this is all you need. Now

8:25 this setup occurs during London. Now let's say we're looking for a setup during New York. And just like I mentioned a bullish candle that creates the SFP is much more important than a bearish one. So even though this is an SFP as I mentioned you took we took out the low but this candle closed bearish. So maybe you don't want to look for a trade on this specific setup. So if we drop down to a lower time frame, maybe we're going to draw out a fib and wait for a retracement back into equilibrium. So once we get this bullish swing failure pattern, what we're going to do is try and anticipate the next couple candles to close bullish. And maybe what we're going to do is drop down to a lower time frame and wait for price to enter a discount before we try and start hunting longs. And as you can see, this market eventually traded up towards where this previous swing point all the way back here. And then what do we get? We get another swing failure pattern here. And then the market trades lower. All right, going forward to the next day, we have a swing point here during

9:11 New York session. We get a nice closure here and we're anticipating the next two to three, four, five candles maybe to trade higher. And you'll usually notice the candle that created the swing failure is a good place to have a higher time frame stop-loss. So here, this is a bullish swing failure pattern because this is the candle that closed back into the range. This low should be protected. All right, going forward into the rollover, we can see that we have this swing point and then we had a closure back inside of it and then we're anticipating the next couple candles to trade lower. Eventually it does, but obviously on a lower time frame, maybe we're not trading Asia, but you guys can see that this pattern does eventually play out. All right, going forward to the next day, we have these swing points. You guys can see here that we've raided this swing point. Again, we're not trying to short. As soon as it takes out that high, we're waiting for the closure of this next candle. So once we

9:57 get the closure of this specific candle, we have a swing failure because that closes back inside of the range and then we start hunting an entry on the lower time frame. All right. Again, going forward, what we're going to do is try and find a swing failure pattern on the next day. You guys can see here that we've taken out this swing low. We got a nice closure and then trying to find a lower time frame entry the next couple hours. Okay, so we have one 2 hours. Okay, inside of these two hours, there is a trade inside of this hourly candle on the lower time frame. So, as this candle's trading lower, this low should be protected. The following day, we have this swing high. And as I mentioned, something to avoid is we're not going short as soon as we take out the high. We're waiting for confirmation that they're going to reject the high. And we don't get that until this candle here. But once we have the closure that we've rejected this high, then we can start hunting a short on the next couple

10:44 candles. All right, coming into the next day, let's say we don't have any swing lows in here that really were being raided. So, none of these candles in here are swing lows other than this one, but we didn't get a raid on this candle here. Okay, the next swing low is this one back here from the prior day. Once we get a closure back above here, we're anticipating the next couple candles to try and position long to maybe trade higher into some level of liquidity up here. Okay, on this specific day, if we're looking for a swing failure pattern, we actually don't get one, which is totally fine. There are no swing points in here that are being raided. So, if we don't get a raid, then maybe we're not going to take a trade because what we're looking for are retail traders being stopped out or smaller players being stopped out and a confirmation that larger players are trying to send the market the other direction. All right, going forward here, we do have a swing failure pattern here, but as you guys can see, this

11:30 market kind of just chopped around. So, you can see that these patterns don't always work. We don't have a 100% hit rate on these patterns, but they are very, very high. I would say they're over 60%. Then on Tuesday, we're going to plot out obvious swing points and we're going to wait for a swing failure pattern. So here we get a nice closure above here on this hourly candle, right? We're not going to try and hunt longs until this next hourly candle. And as you can see here, the next couple candles do trade higher. This day was a bit choppy, but let's say we plotted out our swing highs. Now, this is a swing failure here because we took out the high and then closed back in the range. Now, this would have been a very, very short-term trade. Okay, this would have only lasted an hour because if we take out this swing low, we get another swing failure pattern going the opposite direction. All right, so we have this swing low, we get a nice swing failure pattern and then the next two candles print higher. The following day, we have a swing high. Once we get a swing

12:16 failure pattern, obviously, as I mentioned, it's better to see a bearish candle after taking a swing high. So, maybe we're not going to try and hunt a position until this candle. All right, once we get a bearish candle that confirms a swing failure pattern, we can anticipate the next couple candles or series of candles trading lower. Again, here we have a bearish swing failure pattern. So, if you were try to position yourself inside of this hourly candle, there is an intraday trade in here as this market is trading higher. So, we get a bearish swing failure, right? We take out this swing point, we reject it. This candle right here, there is a trade in here that is going to last maybe 2 to three hours taking out this swing low down in here. And then what do we get? We get a bullish swing failure. So, obviously, this market is in a range. Now, this concept works in ranging and in trending markets, which is the benefit of using this. All right, so we

13:02 get a bullish swing failure. So, we take out this swing low, we got a nice closure, and then we're anticipating one to two to three maybe candles trading higher. All right, the next day is a bit choppy, but we do have multiple opportunities in here. Okay, we have a bullish swing failure here. So, we take out the low and then it closes and then the next candle, right, it comes down and all right, it retraces all the way down to this low and then it eventually trades all the way back above this candle's high. So there is a lower time frame opportunity in here maybe on a 5m minute or one minute chart where you can position yourself down in here on a raid above this high and then we get a bearish SFP going the opposite direction in the afternoon. So once we get a bearish closure after taking out this swing point maybe we're going to try and flip sides going in the opposite direction anticipating the following candles or series of candles are going to eventually trade down lower. Now, I

13:48 could go through my charts for a very long time and find so many examples of this occurring on many, many, many different time frames, but I'll leave that work up to you guys, okay? The important part is that you learn these concepts and practice them in the live markets to see how they're actually panning out. All right? Because as you guys can see, there are so many examples of this actually working. Now, these setups almost happen every single day. But the biggest key is that you're disciplined and you're following these setups and you're not just taking random trades. you're waiting for the confirmation and you're just trying to take a short-term play in the opposite direction after the SFP has been confirmed. If you want to take this to the next level and work directly with me, I've opened up a few spots to my inner circle program. I'll teach you the lessons I've learned over the last 14 years, help you avoid the mistakes that cost me a decade of profitability, and

14:35 trade alongside you each and every week. I'll leave a link down in the description. If it still works, then spots are open. But if it doesn't, then that means spots are closed for the next enrollment. Now, I hope you learned a lot from this video. Don't forget to like and subscribe. And as always, I'll see you in the next