03- Time Based Liquidity
03- Time Based Liquidity
Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of
experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.
There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage,
creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a
currency or currency pair.
CFTC Rule 4.41 – hypothetical or simulated performance results have certain limitations. Unlike an actual performance record,
simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-
or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in
general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that
any account will or is likely to achieve profit or losses similar to those shown.
Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some
of which are described below. No representation is being made that any account will or is likely to achieve profits or losses
similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual
results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading
results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve
financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For
example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material
points which can also adversely affect actual trading results. There are numerous other factors related to the markets in
general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of
hypothetical performance results and all of which can adversely affect actual trading results.
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Time Based Liquidity
• The first one was Price-based (Open Orders) Liquidity,
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which we just covered in Last Lecture. The second is
Structure-based liquidity. And now, we will Study Time
Based Liquidity. This is what we want to focus on.
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Asian Session London Session New York Session Sydney Session
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Asian Session London Session New York Session Sydney Session
High $$ High
• Previous Session High & Lows
• Previous Candle High & Lows
✓ Previous Hour Candle (H1/H4)
Close Close
✓ Previous Day Candle
✓ Previous Week Candle
✓ Previous Month Candle
✓ Previous Year Candle Daily
Candle
Open Open
Low Low
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Asian Session London Session New York Session Sydney Session
High $$ High
• Previous Session High & Lows
• Previous Candle High & Lows
✓ Previous Hour Candle (H1/H4)
Close Close
✓ Previous Day Candle
✓ Previous Week Candle
✓ Previous Month Candle
✓ Previous Year Candle Daily
Candle
Open Open
Low Low
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Asian Session London Session New York Session Sydney Session
• Previous Session High & Lows Previous Previous Previous Previous Previous Previous
Session Candle Hour Candle Day Candle Week Candle Month Candle Year Candle
• Previous Candle High & Lows
✓ Previous Hour Candle (H1/H4) Higher Time Frame > Larger Liquidity Pool
Sell Side Liquidity Sell Side Liquidity Sell Side Liquidity Sell Side Liquidity Sell Side Liquidity