How to Know if a Swing Point is Highly Defended

High Resistance vs Low Resistance Liquidity Runs

Core Definition

[0:00-2:54]

"liquidity as it relates to ICT Concepts it relates to buy orders and sell orders it's as simple as that"

Buy Liquidity (Above Old Highs)

"their stop loss order would be resting right above this high or generally many times just rate at that high"

"there's going to be above old highs and Below old lows"

"buy stop or buy liquidity above that high"

Sell Liquidity (Below Old Lows)

"sell liquidity" below old lows

Liquidity Fundamentals

[0:00-2:54]
Where Liquidity Resides

"there's going to be above old highs and Below old lows"

Stop Loss Placement

"their stop loss order would be resting right above this high or generally many times just rate at that high"

High Resistance Liquidity Run

[3:06-6:39]

Definition

"when we see the market give this thick area of resistance okay there's a lot of price action that the market has to trade through to get back to an old high of significance we view this as a high resistance liquidity run"

Visual Structure

High Resistance Liquidity Run Old High (Buy Liquidity Above) Thick Area of Resistance "a lot of price action that the market has to trade through" Previous High Previous High Previous High Previous Low Previous Low Previous Low Hard to penetrate Current Price "the Market's going to have a very hard time getting through all of these previous lows and previous highs" Least Probable Trading Condition for Longs "so many levels of resistance"

Market Difficulty

"the Market's going to have a very hard time getting through all of these previous lows and previous highs"

Trading Implication

"this is the least probable trading condition to look for Longs because you have so many levels of resistance"

Highly Defended Stops

"those individuals with stops above this old high in the form of a fund they're actually very highly defended because of this type of price action"

What It Takes to Break Through

"it's going to take a very uh sharp economic Market release the data kind of like nonfarm payroll or fomc that type of event will knock through all these levels of resistance"

Universal Application

[4:14-4:18]

"this is not specific to any time frame it's Universal"

Low Resistance Liquidity Run

[6:56-11:21]

Definition

"a low resistance liquidity run would be in the form of something similar to this if we see the market come off a old high and it comes down rather quickly if there is a very sharp or one-way type Direction very little uh retracements of any kind"

Visual Structure

Low Resistance Liquidity Run Old High Sharp Move "comes down rather quickly" "very sharp or one-way type Direction" "very little retracements of any kind" Minimal retracement Very Little Resistance Old Low (Target) (Sell Liquidity Below) Easy Path "hot knife through butter" "this is the easiest area to trade in price action because you have very little resistance allowing price to just cut through all that" Easiest Time to Trade in the Marketplace "every retracement is going to find very little resistance"

Trading Advantage

"this is the easiest area to trade in price action because you have very little resistance allowing price to just cut through all that"

"this is the easiest time to trade in the marketplace"

Retracement Behavior

"every retracement is going to find very little resistance"

Hot Knife Through Butter

[13:21-13:26]

"it's like a hot knife through butter very little resistance to every time a low is formed price goes through those lows"

Institutional Perspective

[17:03-17:32]

Defended Levels

"the more price action there is around a specific level or a high or a low that is indicating a levels being defended on an Institutional price Model"

Synchronization with Institutional Order Flow

"you're going to be getting yourself in sync with the institutional order flow then your trades will find very low resistance in the form of profitable exits and very little draw down"

Study & Review

Click each card to reveal the answer (from transcript quotes)

What is liquidity as it relates to ICT Concepts?
"liquidity as it relates to ICT Concepts it relates to buy orders and sell orders it's as simple as that"
Where is buy liquidity located in relation to old highs?
"buy stop or buy liquidity above that high" - "their stop loss order would be resting right above this high or generally many times just rate at that high"
What defines a High Resistance Liquidity Run?
"when we see the market give this thick area of resistance okay there's a lot of price action that the market has to trade through to get back to an old high of significance we view this as a high resistance liquidity run"
Why is High Resistance Liquidity Run the least probable trading condition for longs?
"this is the least probable trading condition to look for Longs because you have so many levels of resistance"
What makes stops highly defended in a High Resistance scenario?
"those individuals with stops above this old high in the form of a fund they're actually very highly defended because of this type of price action"
What type of event is needed to break through high resistance?
"it's going to take a very uh sharp economic Market release the data kind of like nonfarm payroll or fomc that type of event will knock through all these levels of resistance"
What defines a Low Resistance Liquidity Run?
"a low resistance liquidity run would be in the form of something similar to this if we see the market come off a old high and it comes down rather quickly if there is a very sharp or one-way type Direction very little uh retracements of any kind"
Why is Low Resistance the easiest area to trade?
"this is the easiest area to trade in price action because you have very little resistance allowing price to just cut through all that"
How do retracements behave in Low Resistance conditions?
"every retracement is going to find very little resistance"
What does the "hot knife through butter" metaphor describe?
"it's like a hot knife through butter very little resistance to every time a low is formed price goes through those lows"
Are High and Low Resistance concepts time frame specific?
"this is not specific to any time frame it's Universal"
What does more price action around a level indicate from an institutional perspective?
"the more price action there is around a specific level or a high or a low that is indicating a levels being defended on an Institutional price Model"
What happens when you sync with institutional order flow?
"you're going to be getting yourself in sync with the institutional order flow then your trades will find very low resistance in the form of profitable exits and very little draw down"