[Music]

Hello everyone and welcome

back to this Spanish trading course

on institutional trading my name is

gonzalo and in this video we are going to see an

introduction to the concept of liquidity and it

accumulates liquidity found within

the markets and we can do it

We can find it through

the price graphs this that

I have open in particular is a graph

of bitcoin prices

and putting its approximate value in dollars

in a digital currency similar to the dollar

is what I know about you, which is a currency that

follow the value of the dollar

and in this market we can buy

bitcoins if we have you or sell

bitcoins and receive you in exchange

then liquidity is the amount of

orders or the amount

of money or material or

bitcoin or assets  What is in a

certain price

for example imagine that you want to

buy it at viktoria the bit with the

price that is that it looks small I will

try

to make it bigger

and you want to buy it at  current price

what are 60 thousand 500 999 and you

want to buy spend a total of a

thousand dollars worth to buy bitcoin

so what you do not know is if there are

orders in the market for the value of a

thousand order of thousand dollars I think I

want to sell bitcoin  At the same price,

so that you can buy

bitcoins, a

thousand dollars would have another person on the

other side of the market who would like to

sell you those thousand dollars in bitcoins,

because if not, yes, no, if no, if there is no

offer, you cannot access that

market.  For example, if the

cars of a model run out

in the market that expects

more to be manufactured to be able to buy here

, the same thing happens if there is no one who

wants to sell bitcoin so that they

can buy and on the other hand if you

want to sell bitcoins for example  to 62

thousand that is 58 thousand

or better said to 62 thousand dollars if you want to

sell the bitcoins at 62 thousand dollars

as it is a very high price because it is

possible that there is no one willing to

buy  Buy them at that price there is no liquidity

that yes I know liquidity and liquidity

also in practical terms is the

amount of an asset which is

not going to move the price because when

because what happens when you

place an order for an amount

if  that amount runs out if that price

runs out, the asset runs out and your

amount of was higher than what

the market does is go to the next

price level and take out the

remaining assets for example if

we have if we want to buy 60  thousand

dollars 10 bitcoins and there are only 5000 with

60 thousand because they will give you 5 seen in 60 thousand

when you place the order and it will rise for

example to 62 thousand 100 and from there they will begin to

give you what remains of our order

of your order and that is how the

Markets in general, here on the right

you have this table which is the order book, it is

worth the team in the derby,

but well, it is the order book

and the order book shows the

amount of one of an asset to

different  Before prices and what we have here

is in the book order, which is the order book,

we have that right now the

last price is bitcoin was 60 thousand 668

with 24

dollars each bitcoin and up here

we have the different

prices higher than the average and the

different prices lower than the

average and this makes up the order book

what does that mean by then

what does that mean what does that mean that we

would have to go to the

top which is this here which is

where the selling prices are at the prices

that we can buy and if

we wanted to sell we had to go to

the bottom

which is where the

buying prices are and we only specify those that

we can sell because at the

prices that people are willing to

buy

then if we now want to buy  5

bitcoins we want to buy 5 bitcoins

this is the

this column is where is the number of

bitcoins that there are for each price and this

column is the price

at which it is willing to  people sell

that amount then what happens if

we look at this row below here

if we wanted to buy 5

bitcoins they

would sell us there

would be a total of 22 87 12

871 bitcoins

at a price of 60,000

and 682

dollars

and then the rest that we would have that

it would be approximately another 278 more or

less

and 2.78 more approximately bitcoins

at a price of the next level of the

order book

60 thousand and 60 thousand 682

0 99 cents

more expensive it is

worth and this is the liquidity

this was here is the liquidity in the

amount that there is  The price level of the asset here is

worth if

we wanted to sell because we have to

do the same calculations but with the

bottom part that are the order book

of the people who are willing to

buy, it is worth what price they are willing to

buy in  what amounts and up here

how willing are they to sell in what

amounts and that is what

liquidity is

then what happens as I said that

when liquidity ends for example  For example,

here there is

138 thousand dollars of liquidity at this

price since there are 147 thousand dollars of

liquidity at this price to buy

peaks that are not equivalent to the 2 with 2 871

or 22 45

425 that are here in fact we would

end the two levels of liquidity  Now

that I see it and I am seeing it and

we would have to go to the next level

of liquidity to finish because two with

four plus two with two are 4.6 and the

casio would be 0.4 at this price

we have to take

that is the liquidity for that  We say

that liquidity constitutes the

amount of an

asset

that can be traded at a price level

without that price changing because

the price changes because in the order book

there are different prices for different

quantities.



a little more

graphs and to comment on some details

in the first place

what I would like to comment is that the

price does not necessarily depend on

liquidity and it is an important aspect

because many times it is assumed that  That a

price of a certain asset

will always depend on the liquidity

in the market, that is, if there is more

liquidity,

less liquidity will increase the price

and if there is more liquidity, the price will rise

and that does not have to be the case at all,

for example  yes,

if we go to this graph,

if we go to this graph,

if we look at the bottom of the

graph, let me underline it for you, this

part here, this is the volume, the

volume, is the number of the amount of

assets that has been  Not traded then,

notice that the volume is not

necessarily direct, it does not have an

exactly direct relationship with the price.











was

much higher than all the times that

the price was rising that volume

was lower than this when it fell that is to

say that a higher volume

achieved a price drop and was

not  He would have more sales volume than

himself because when

there is a sale it means that someone is

buying when one buys it means

that he is selling

well the next thing we are going to see is

where the liquidity is located within the

graphs because that is the way

we are going  to follow

the price evolution a bit and the way in which

we are going to prepare ourselves to

know where the most important purchase orders are going to be,



normally the volumes are

at or near the ends of the

candles and more specifically they are usually

closely related to the swings with the

turns that we have talked about on

occasion those without jumps those without lows

because below these levels is where

protection orders are usually placed

either through

stop-loss orders or directly through

rules of regulations  of negotiation that

are oriented to reduce the

to reduce everything that is the

[Music]

the risk then where we have here

the fine v  We will see to be like this more or

less if we put this in a reduced way



we could say more or less that these

are the swings at which the price is more

or less falling as it begins to

rise,

we get a vision of the swings that

are in these  zones

and now we are going to see why

the price started to rise because the price started to rise

or because the price started to fall

from those zones because if

we had operating as the

institutional trader that we follow,

who is the only trader

who maximizes maximizes  the benefit of the

speculative speculator the rest we

do not care about the institutions we

institutional their reasons we

operate or we want to operate according to the

traders who have perfect knowledge

of the market and

complete ability to modify its price is worth

as they would do it and what they would be

doing because we  we want to

be like them in practical terms and be

able to negotiate at the same levels as

them  They do to maximize our

profit as speculators as

operators that what interests us to get

the maximum possible monetary benefit

from a market is worth then

our narrative and our story

focuses exclusively on

what could be that they were doing

what seems to happen with those

institute operators  institutional and

institutional that maximize what

the speculator benefited and from now on and

in the presidents videos I am not going to

make this clarification any more so

repeatedly but when I refer to

institutional I refer to that type of

institutions,

then because it came down here the

price because the price came down here

before buying because it was bought here and

then bought here because

the price was bought from down here and the price would have gone

right up to here and it went up right up to

here because a trader could see that he

decided to accumulate enough

orders here  purchase as to move the

market there to  Up and

down here

for sale to bring down the market here up to

here, what was there and for him to

do it, how can we see it?









enough to understand where the

settlement is, we want to enter

where there is the large volume of orders that

an institutional trader has the

ability to move the market wants to

bring together and collect to bring the other

point to another price level and have a

profit well what happens  is that as

I say the protection orders are

usually below the minimums for example

when someone buys down here on this

red candle or on this green evening puts

a stop loss here or down here

well a little lower a

maximum level of loss

that at the moment in which the price falls

to that level, it will close the

purchase orders because that person or

that operator  The tendency was to win if the price

rose we had been fired to go up and

win what happens that when this

candle begins to rise occurs we know that it

fell from this liquidity candle there are

closing volumes that is to say that

someone has bought here a

buy upwards is perceived

downwards will put a sale to

get rid of the purchase

and I repeat when someone buys here

I am not referring to the institutional operator

but when someone buys

your purchase here because they think the price is going

to rise and at a given point that it does not

We know what it is and we are interested in right now you

will have the idea of selling you will know

where you want to sell what happens that that

investment you have made if the price

starts to drop will have a point where

you will want to close it to stop losing

worth and it will be below your

purchase price normally or at the level

of the purchase price or close but usually lower



then

because of course if you buy and put the

closing order where you buy is  Very easy

that you always want to leave a margin

so that prices

always move, so you have to leave a

little margin if you buy here so that the

price fluctuates and does not close the order,

also assuming a limited risk

not to enter  bankrupt well

then he

[Music]

the institutional operator the

institutions as they control the market

has a perfect knowledge has a

perfect knowledge where are those

protection sales orders that

buyers have used because sales

because sales around here sales because

sales everything  They buy, they put

sales, what happens, that constitutes in the end

what we have seen before on this page,

which is this order. Book is here and

what happens,

the market,

all markets provide this

information to operators and not all

the market will show you the same  all the

information that exists in

within the command book because

many orders that can be put as

hidden require  If you have that

option then you as a user of this

market will not see those orders that

are hidden, you will only know the ones

we have here, they have this order book here

but the

institutional operator can see them because they have

perfect knowledge of the market

and if not  you can see them, it has the ability to

move the price until it finds, like

the one who finishes a well, to look for water

and find that liquidity that it

needs and the price is where it wants,

then later because you have that ability to

do it then as the

markets of  What happens that there is an

accumulation of what is called

and liquidity engineering that

is building prices below in

a low zone and then being able to rise

because what they do is precisely make

this type of mouse movements

every time the price starts  to go up,

people buy and put a certain sale here,

they make sales,

then that sale is added to the

next sale, it is added to the next sale.

The next sale is

added the following protection sales are added

that is not executed is a

pending market order is not that they

sell but they place a

pending order that that space goes

down the purchase they have made before they

have made a purchase another  buy another

buy and down they put

protection positions of sale

then at the end that generates a

high volume and a great liquidity when the

market has already accumulated enough

sales, enough liquidity below or

what could be said interest has opened in

some way

is the opposite the  Open interest for

practical execution effects is

open interest that the market makes

barrett all these orders

here and to him or when I say the market I

mean the institutions sweep these

operations and move the price to

where they want to move it and what they

have been doing with it  selling here to

people at this price

at the price you are selling at a

price higher than

pn we are going to say to a  higher price that

has been selling they have generated many

sales here and now ap - m

lower price ap below they take away

everything that has sold them more expensively, they buy

the institutions and place it where they

want moving the price is

worth then that's the one that's the

basically

How do we find liquidity in the markets and how do

we take advantage of it?

Well,

very simple, we go there,

what do the institutions do? What do

the institutions do is give

the operators the feeling that

what domestic

or retail operators call  supports and

that is silly because supports

do not exist because any price level that you

use in the end will sooner

or later know there is something that happens it

is not because it is a particularly

strong level because it holds up because creating this

support people look at  they see that there are several

candles that hit the level and that

do not go down any more, they think that this level is a

strong level and they begin to  buy the

institutions immediately after what

they do is bring the price lower

and in that way

all the stop losses here are

executed by people who sell them at this

cheaper price and buy back the

institutions at the cheap price, the next thing they

do is the next level  From the

next level of support here they start

to again, you have to create a support,

people start buying and

what the institutions do is that they

automatically drop in the price

again, they

lower the price again until here and

all the tables are loaded and

All the stops of losses that

were here are loaded, they sweep them with this candle

and now here they create another support and it is

always the same game

that they were another support in reality that

is not such because it will not support nothing happens

is that the operator less  informed gives you

the feeling that there is a support

because you see this the same in a

lower time frame what we want in two

candles is this

what we see here in two candles  in a



same time frame this is the same as that marked it the

lowest season all people start

to buy to buy to buy to buy

ok and finally the price rises is

here

sub be here and now it falls to half

and creates a support

then what happens  Now that people

do the same, they buy here and what they do, the

market falls and sweeps that level, it sweeps it

and closes all the protection orders that were

here, it executes them and the

market buys them cheaper than anyone else

and in the end when they already have enough

orders  immediately without warning

the tools

and without warning the price leads

practically directly to where I wanted to

go, sweeping all those who

had been here selling here

people seen positions entering

sales and now they take and little

by little they have swept all buyers and now  a

bardem of one all those who had

short selling positions

sweep them all and begin to buy

and they begin to sell

and buy orders

to  down here and

sales protection buy orders sweep everyone

over the price execute all the

orders here must buy

sell to everyone everything that had been

taken from them before from below and that's how it

works over and over again the  market

then we are going to show it again with

another example I am going to open the nobel meta

tree of what it looks like

then that happens

continuously this is this is the gold

before it was the bitcoin the gold and there is the

graph instead of being a  day is the

five minute chart and

exactly the same thing happens here

exactly the same without any

blush they do it



sweep support ok sweep support

raises

a small sweep support

raises create a support this candle does

if people are going to believe that it is going to  do

this really because they will think that these

are a candle or anything that the

operator does not interest me

think that it will happen that they make

support they sweep them and thus continuously

support sweep

support  sweep since another support that

has not yet swept yet barrier

support sweep is worth they are creating they are

making people put stops pum

pum pum pum shot and they are sweeping them

again and again and that is one of the

ways to identify liquidity more

It is simply that it is when there are highs

close to a fairly close level

when when the price is

moving to one side and there are highs and

lows

close to it, we know that up

here and down here illiquidity three we have that the

price before moving was going to sweep

up the water  sweep down and then it

will go up or down ok not always

necessarily going to be is the order

that is to say that it may do this it

arrives so it goes down it goes down through it may

be that the price does not do directly

go

do not do

this directly that does not do  Directly,

this is valid, it may be that you do this

when you want to go down, do this for

example

and go down

how can we

anticipate because if we are in

a market that  Normally it rises

structurally, it is most likely that

this low here

we are going to imagine that larger than this

low here is the next

move

to a downward so a small

breakout a breakdown below and a rise

because we see that in general it

is rising  the market and that can

give us a clue of where it is going

, we will see that in more detail but

so that you can see why I explain this to you, it

is also the market instead of going up

as is the case with gold right now that

I think  He has little left to go up I think

that in an hour he will be going down, he

will say he is going down because

he is going down right now,

so we are seeing what is happening here,



doing the wings like this,

with which we are going to look at

where the previous highs are.  that there were

some maximums, they beat them,

there is another maximum, they sweep it, you

have to go to the maximum of the

auger instead the minimums set the

minimums in general, so yes, minimums are

created

Some highs sweep them away but when

the neighborhoods overpriced, that is to say, this no

longer does that way, what it is doing is

like that, they wait like this

and they take maximums while it is

falling all the time what they are doing

here because the price goes

up here because the stops are up here  of losses is

worth up here are the stops of

losses the liquidity the volume is raising

the price with volume and it repositiones it and

that does it in our narrative our

history is done by the

institutional trader of the informed trader it is

worth because they know where

the levels are they create stops of  buy here

these for sale here are

worth going

down they execute the sales with which

the people who had bought here buy from them

and now they sell the entire operator

buys it at this price and they place it

at a higher price and earn

and earn money and that how  It works

a bit entertaining to explain it

so that you can see the dynamics of the process

which is then that is the

fundamental way of moving from money to

money  notice that 90 before a rise

normally the price will not be if it

rises directly

what the price does is make a feint

of its life so that people buy

and then make a sweep and then it

rises

and when it has to go up to the top

about his life that takes pires but to

go up there he has created a false

floor people have trusted because there will be those who

say that this is a shoulder head

shoulders I do not know if you have seen this



inverted here that

for retail operators these are

this  This is a good bullish pattern

because I do not want to go into

how they operate it and not because it does

not seem to me that if 95% of the people who

do this lose money, they have to give them a

lot of credit but this is surely

here on the time chart  15

minutes if we go to a 5 minute one

to see if it gives me data, it is for the

server if I do this area

here and I go to the one minute

to see what to see if it is going to go

and stay outside

I think it is not  They order the data, they

must see that the data is

February 26 and June 15,

so I can't see it because since there is

no connection, they load the data over

there.





they give

good data because the case that

this type of pattern this type of three-

pointed pattern normally I will see it

that way just like this one here you

will see something similar here you may

see a shoulder head shoulder are double

or a double  ceiling Another pattern that



domestic operators use is this come street

they believe that there is resistance here

because they have seen this

repression to fall battle is going to fall

well it may be yes then no but

anyway when they see the double floor they

think this is  a support

sends the price down and what happens until

the double bottom generated and now what does

the market start to create a false

sensation

of the support floor after the double sun and what

do people the trader want to do  means

what makes that when they see that this level

more or less or even this level

has been broken they begin to buy here they

start to buy cars because they do it

because I do not know it and that makes markets

quite the opposite what they are waiting for

to happen

and here  They have all these of all

the stops and above they have all the

stops

those who want to sell but although they

buy they have the stops here and they

take them ahead of them, they buy back all

this they buy it at a

cheaper price than they had already sold, they already move

Everything that had brought from above what

is going to move below and that is

how liquidity in the market will work for you. I

believe that it is already quite well explained

that you can see a bit that bitcoin taught us,

I have taught you gold, I can

teach you  Whatever it is to see the uss the nasdaq

for example here I have the nasdaq

I am going to pass here until

the stock index is an index of one of the

most important companies in the United States and

exactly the same, look at

it  This is important because

normally in Spain when we

see the ibex that I know that nasdaq is going to enter

or in other countries the equivalent

that is supposed to be a bit

how the economy is in general

so if you look at the economy it

behaves apparently soil  above

and ground also created that has swept it

here here the ground created

double ground

upstairs upstairs garrido ground up

etc.





the

general functioning of the

markets tends to have a

behavior very similar to what it

would have if it were simply a field,

a field

of work for speculators

that does not seem to have much to

do with the real value of the markets

themselves but with purely interest

speculative

of a

[Music]

tone of great fortune who can

move these prices at will to

get the best possible profit



if you  You see, I am drawing the consecutive floors



and consecutive ceilings that are being created,

people have the orders and how they go 1

to 1 sweeping them

before continuing

for how it is an exercise that occurs

even in the basket in an

entire economy of a country like the United States

as  In principle the markets

use liquidity in that way of any

kind this was the index I am going to put

the x see that the oil is solvent and well

we are going to put it weekly

I have no connection this is the monthly

this is since 2015 what is

seen  the same the monthly floor

above

in this place in here

double floor

in fact falls

in fact from now on falls

in fact

garrido noise goes up boring and then

up again right

get on the barrel

this here

and click which has fallen now to  raise the

price of

the ceiling

and this with oil for example but

it does not matter is that we are going to the price of

any nonsense than of the dollar

with respect to the headquarters what was the

dollar of if

ngapur singapore dollar that you will tell me and

I put the graph of a minute because

because I can think of putting that one because I

don't care which one puts all the same

all fractals about what I mean

when state that repeats everything

differently different scales equally

and well no  It is as expensive as in others

I am going to lower the size of the stroke a little

because I am going to change the color okay

then the same thing

we are going to see

floor floor ceiling floor sweep ceiling

sweep ceiling up

risked the ceiling

in fact falling to the floor

swept text swept in fact

floor

that here there are tiny floors that you

can see that I will do the same I

will mark all

of them sweep in fact to take wind new ceiling

floor

garrido the ceiling floor

by garrido the ceiling floor but all the

flights in fact

to ribó all these others

the ceiling  this here now goes up

roof new floors all the floor to

take wind ceiling floor

nothing swept

ceiling up and falls like this all the time

temple stops a  Above is, they

are smaller moments that do not give

much time

we are going to simply be a schedule they are

closing the markets and it is not seen but it is

that it always always always happens the same

here it is more more more attractive ok

this video is a bit long if you have

Understanding the concept, I am not going to explain

much more in this video, you can go on to the

next one if you want to continue watching because to

go showing double floor floors is worth in

fact they sweep the floor

but the floor is

the new floor so that people

think that this double floor is  a

support that makes everything dry

down here and where does it go for this roof

but it leads to it can continue to lower the

ground

to take wind

so that this ground people start

buying they think that what is

in fact a strong roof here for the

first time does

a support

the ceiling that they had that is for the

sellers sweeps the buyers makes of

them and in the end they look at the buyers they

were right but it is too late

because they are out

ok  It has taken them all off,

let's say that what the market is

doing is

like, on speculators, they want to throw

all the other speculators out of the game.







As the price,

to the extent that these participants

exist, leave their footprints, we tell ourselves

that everyone do that but we do that in those

who can do it, we look for the

footprints of their participation and we

identify them in that way so

that we can operate together with

They are not against them but together with them

and in their same direction

I will be sharing with them part of

that benefit that they have that

privileged information indirectly because

we follow the path that they are leaving,

well I hope that this video has

pleased you and that it has been  informative and

nothing in the following video I am

thinking of showing you more

precise liquidity structures the main  As

you have seen, ipal are the highs and

lows of previous candles,

there are others that we are going to see below

that will generally be the order blocks

that in English call blog order,

which are there are blog sites that are

those of michael hudson, then what  I will explain

some more extended block orders

and mitigation blocks, it

is also another type of good

mitigation blocks and in general what

would

be imbalances is worth what are called

imbalances in English that are like

accounting squares that must be adjusted

and that it is necessary to fix and mitigations of

orders that have been left there with

inefficiencies that explain what

all this means will be the two most

important points of the study of the

order blocks and what constitutes the flow

of market orders as long as it

is always from  the institutional point of view

in the terms in which

we are talking about referring to

such institutions according to nothing else

I wish very much to all and to all

and see you in the next video see you

later