Capturing Liquidity Depth with Toodegrees
Today I want to go back a few years ago, to when I first started studying ICT concepts.
I think it was the market maker primer course, or the market maker forex series.
ICT explained how the market gravitates towards specific levels where liquidity rests in the market. This liquidity is needed in order to pair orders for the larger players in the game.
Now, he explained that IPDA will reprice towards the liquidity pool and will look to pair orders at specific ranges above a liquidity pool.
In Forex it will pierce in increments of 10 pips above or below a liquidity pool.
Now, to make it a lot easier, Toodegrees has developed a tool that will visually guide is with this concept. The Liquidity Depth [Pro+] Indicator.
This tool allows us to adapt this concept based on our understanding of price. It delves into the essence of institutional trading, exposing deeper liquidity depth pursued by institutional giants and astute bank traders that lay further than the mere extremities of price.
How does it work? It automatically annotates the correct liquidity pools and adds the depth increments.
On this chart I selected the daily chart liquidity pools. Do you see how the market raids the specific liquidity pools, and makes sure to reprice towards the specific depth levels.
Let’s take a closer look at how the market reacts to the build up of sellside liquidity.
We can see that while the market has raided a few sellside liquidity pools, a lot of liquidity depth has stayed intact.
What can we expect? In this scenario we expect it to aggressively attack those liquidity pools.
The depth I use for indices on the 15 minute timeframe are increments of 30 points.
So 30 - 60 - 90 points.
We can customize the settings in the indicator to suit our needs.
You know, how much liquidity pools should it show, or from what session, what timeframe and more.
Now, I don’t get paid by them to post this, I simply enjoy their indicators and want to show you guys how you could use them in your own trading.
So if you’re interested in checking out their indicators, you can find them on Whop down below!
Click here for the Toodegrees Indicators
Signed by yours truly,
A Sign Of Time