Liquidity Sweeps and Smart Money Concepts in Price Action

Hello guys, welcome to today's session in Quantsapp. Today we will be learning about how you can trade when the smart money are trapping you, okay? So there will be some concept of liquidity, uh, grab you can say, or you can say liquidity sweeps, right? How you can avoid those conditions, how you can trade with those conditions, so we will be looking at that, right? But before starting the video, if you're new here, you can go in the description, there is a link below. With the help of that you can download and install the Quantsapp application, okay? After successful registration you will get some free 25 tools here that you can use for your trading, okay? Also we have a video library here, so in the Learn section you will get the Video Library. We have made multiple videos on Pro Plus tools as well as on strategies, so you can go through these videos. They are available in multiple languages, right, like English, Hindi, Gujarati, Marathi and Tamil as well, so you can set your preference. And at any point of time, if you guys are having any kinds of doubts or queries, right, so you can contact us with the support. So you will be getting our contact number and email ID, so you can contact us and we will be there to sort your queries out, right? So let, uh, let's get back to today's video, today's session, that is, uh, how you can trade with the, uh, with a smart money concept, right? And in smart money concept we will

be focusing on liquidity grab, so we'll be looking at that, right? So first of all, when I'm talking about smart money concept, okay, so in smart money concept there is a term that is known as the liquidity, liquidity sweep you can say. Okay, liquidity sweep you can say, or sometimes it is also known as grab. Not trap, but grab, okay? The liquidity sweep and grab, right? What is this? So for example, there is a resistance you can say, right? Now when your market goes to this level and it rejected, and this level rejected the price, right, so it came down. Now again when market goes to this level, and again the price is rejected, right? So now there are some traders who will think this is a strong resistance, obviously, because the market rejected two times from this level, right? So this is a resistance. Now the smart money, okay, who are trading, the financial institutions, the, who are the smart money, so the financial institutions, the big players, okay, who are investing so much money, like who are trading with, uh, you can say, uh, 1,00,000 CR, right? So they must be knowing, like, this is the resistance, and from this level all the buy, they are buying put

from this level, right? So what they will do, what they will do, they will just make a movement, you can say a fake movement here, all right? And whenever it will be broken, so it means now at this level there will be so much liquidity. And now what is liquidity? So I'll clear that also, all right? So liquidity means, liquidity means the area where there are so many buyers and sellers, right? So this is, you can say, a point of interest also, right? So you can say this is a point of interest where there are so many buyers and sellers sitting here, right? There must be some people, there must be some traders who are initiating their trade, okay, because they know from this point the market is getting rejected again and again, so they must be ready to take a put buying from this position, right? Again, when the market came here, right, there must be some sellers who have already bought put from this level, and they have placed their stop loss, just a second, okay, and they have placed their stop loss somewhere here. So this is their stop loss and this was their entry point, right? Now the smart money, they also know that, because they also be knowing the price action, right? So they also analyze this situation, and what they will do, they will just let the price go above this level, and when

all the stop losses will be hunted, all the buyers, the put buyers, will be out of the market, then they will reverse the market from this point. All right? So you can see, at the previous time my resistance was there, the price was getting rejected from here, but now the price got rejected from here after removing all the traders out of the market, right? So this is how the smart money plays, okay? This is the liquidity. So you can see, this is what we call the liquidity sweep or liquidity grab, right? When the smart money, they remove all the liquidity, all the players who are buying and selling at a particular point, right? And this is what we have to take care of, and this is what we will trade, how we can trade this, right? So this is the concept of today's session, okay? So I hope it is clear, that is your liquidity. I'll tell you where are the conditions. First condition, first condition, I hope this color is visible, right? So first condition, so first, resistance condition. For suppose this is a resistance, and then there will be a liquidity grab, so this is the point where the smart money will remove all

the players from the market, small players. They will remove all those players from the market, right? So support, resistance. Then the second thing is that, then at the trend line, you can see the liquidity grab in the trend line as well, okay? So suppose this is an uptrend line moving like this, so if I'll draw a trend line from this point like this, right, so what they will do, they will break this trend line. So there will be some traders who will initiate their trade at this level, but again what they will do, they will again reverse the market from this point. So all of the stop losses, all of the buyers who are taking entry, okay, they will be removed from the market. Support,

resistance, there will be some in the market. So for example, there will be patterns, just say for example price, uh, price channel, okay? Price channel, okay? So price channel is something like this, right? Now there will be some players who, who must be thinking like price will again reverse from this direction, but it will give you a fake movement, and when all the stop losses will be hunted, it will again reverse itself from this point, right? So there will be price channel, then so many patterns, pattern, say double bottom, a, b, he, uh, there is a condition that is very common where you can see the maximum number of liquidity sweeps, that is sometimes we call it as a resistance. I'll show you how. Okay, so for example, this is a point, okay? So your market took a support, again your market went upward, and again it is making a support here, okay? So when the two lows are at the same level, whenever your two lows are exactly at the same level, so it means there is a maximum liquidity below this point. Maximum liquidity, there will be some buyers who are now ready to

take position in the market, then they will take position for the upper side, because you can see the market is always going above from this level, okay? So there must be some buyers who are waiting, there must be some buyers who already had taken trade and their stop loss is somewhere at this point, at this point, right? So you will see maximum liquidity grab. You can see the liquidity grab will be at this point, zone. It will break this point, and again then it can go in the upward direction. After sweeping all those small players out of the market, then your market will again be moving in the reverse direction, right? Now how you can trade, to a bar, let's see it in the application. So I'm opening the Quantsapp application here, and in the Charts, Trade and Order, I will apply a chart of, let's take a chart of an index here, okay? So first I'll take the chart of BankNifty. So this is the BankNifty, okay, and currently the time frame is 15 minutes, let's apply it in 5 minutes, right? And let me zoom my chart a little bit for you, right? Just a second. Okay, I hope my chart is visible to you all, right? So a chart here. Now first of all, when I am making, when I have to understand, like, from, uh, at which

point there can be a liquidity sweep, so the first important topic is to find out the point of interest, right? Now what are the points of interest? So the points of interest are the supply or demand zones, you can say, right? So they are the points of interest. The point of interest is the point from where the big players are taking their entry, right? So let's find out which is the point of interest in our, uh, chart, okay? So I can see this was my first point of interest, okay? So how can you find it? Because I can see from this point a big movement started here, right? It means there must be some big players who entered at this point, right? At this point, at this point there was also a movement, but this move was not that much of a strong one, so this is not my point of interest, this is not my point of interest, this is not my point of interest, but this is my point of interest, from where the big move started, right? So what I'll do, I'll just mark the high and low, and this will be my zone. So this will be called the point of interest. First of all, point of interest, you can say, one, because there, there will be so many points of interest, okay? Then again I can see, if, if my market is taking a good move from here, it means this is also a point of interest. So I'll mark the lowest candle, and I'll mark, I'll take the, uh, opening and closing of that candle, and I'll mark this level as my point of interest two. This is my

point of interest two, you can say, right? Now whenever my point of interest will be broken, okay, at that point of time you will analyze there will be a good movement in the market. For example, at this point your market broken, your market broke your point of interest two, okay? So it is broken, it means there will be a good momentum, so you could have taken entry at this point of time, right, when your market reached here. So suppose I have created this as my point of interest. Now at any point of time if your market will reverse, right, so if your market will reverse, let me clear it for you, okay? I'll, uh, draw the point of interest again. So this was my first point of interest, okay? This was my point of interest two, and this was my point of interest one, okay? This was my point of interest one. Why I have drawn point of interest? Because from this point a good movement started in the upper direction, from this point a good bearish movement started in this direction, right? So that is why I have, uh, I have taken the lowest candle, and from the closing and from the opening I have drawn a zone. Similarly here also, right? So if my market at any point of time, it will again come here, so at the time what I'll think, this is my

point of interest from where the big players can again take an entry, right? So rection, if I'll get a confirmation, confirmation you can say, rejection like this, okay? Market re, a good bearish engulfing candle, so then I can take my entry in the bearish direction, okay? If it will be getting broken successfully by a green candle, then I'll take again entry in the upward direction. I can take direction from here, right? But is zone say, at any point of time, at any point of time, let me show you how, right? For example, see, this was also a movement, let me show you, just a second, I'll show you how the people get trapped in a liquidity sweep, okay? Let me take an example. Uh, yes, I think that this is a good, just let me give you a brief idea how people get trapped in a liquidity grab, okay?

Okay, I think I can take this example. Let me find an example for you, okay? Okay, and I'm removing all those remaining charts from here, just a second, let me set it. Okay, so at this point I can see from here a good movement started, right? Let me show you how the people get trapped in a liquidity grab. So at this point I can see a good move started, right, in the negative direction. So if there is a good movement started, so I can believe this is my point of interest, right, because a good movement started from this point, right? So what I'll do, I'll create a point of interest here. Similarly I'll make a zone, okay, as I have made before. So what I'll do, I'll just take the highest of this candle, so this was the highest candle, okay, and I'll mark the closing and opening, so this will be my zone, okay? I have not drawn it properly, but this, this was my zone, right? This was my zone. Now my market went downward, okay, and after downward, but there was a movement in the upward direction, right, in the upward direction. And if you will mark this as a resistance, some people have made this as a

resistance. Just a second, let me show you. So I have made this as my zone, c z. Now you can see my market went downward, again it came here, okay? M, again it came here, so this is a resistance in a shorter time frame, right? So there is a volatility, right? Now you can see my market went downwards, it came here, okay, or point, it took all the SL. So there was a very good SL hunting, okay? So at this moment you can see, this is the moment where all of the small players were removed from the market because of the, you can say, this is your liquidity sweep, or you can say the liquidity grab, okay? You can say the liquidity grab as well, right? So this is the liquidity grab. But the people who know the concept of point of interest, point of interest, because this was my point of interest, because a good movement was started from this point, it means the big players, they are taking entry at this point, okay? Stop, they have not, they placed, they have not placed their stop loss here, they

have placed their stop loss here, because from here the good move was started, right? So you can see, when this resistance was broken, there must be some people who have taken entry, stop, okay, and then this was the move, actual. So this was the moment you should have taken your entry, right? So entry, and then you can see a good movement in the bearish direction, right? Similarly, if my market went in the downward direction and this was my last candle, so you can make the body of this last candle as your zone, so this is your point of interest. Now I will not take my entry in the upward direction till my market reaches this level, okay? And you can see, bullish direction entry, your stop loss would have gotten hunted here, stop, right? So wait, when your market will reach here, so that you will not get affected by the liquidity grab or liquidity sweep. This was the concept of today's session. I hope this was useful. You can like the video, you can comment your views in the comment section. Also, if you're new here, you can subscribe to the channel as well. Thank you so much, guys, this is your trainer Ankit Singh Rawat. Have a very good day.