Instrument: BTCUSDT
Time Frame: 4 hour
Exchange: Bitget
Trading Type: Swing Trading
*This is the 4-hour chart for Bitcoin. After setting Bitcoin to a 4-hour time frame, I have checked liquidity based on swing trading, and uploaded the setup based on liquidity taken.
*In the technical market, there are various trading methods. Today’s setup is based on the range created using liquidity availability as the key criterion.
Basically, buy and sell zones are set with black boxes, and the priority of trading zones is determined by the pullback and upward movement. You can then establish a strategy using liquidity (Liq) as a guide.
The buy zone is located at 60k, and the sell zone is at 69.3k. Based on the small range, I plan to set the trading order depending on which liquidity is taken first—either BSL or SSL.
There are two major methods to check liquidity such as BSL and SSL:
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When liquidity is swept (i.e., briefly broken through and then reverses) by a wick, it is called a liquidity sweep. In this case, the probability of moving to the opposite side of the range is high.
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If liquidity is broken through and held by the candle body, and this liquidity serves as support or resistance, there is a high chance of further upward or downward movement in that direction.
- Liquidity inducing buying pressure is called BSL (Buy-side Liquidity).
- Liquidity inducing selling pressure is called SSL (Sell-side Liquidity).