Luckshury's Log #2

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If you do wish to stick around, I will cover unreleased trade breakdowns, and some personal observations from my time as a day trader for you to read through and hopefully find some value within.

TRADE BREAKDOWN #1:

asset: BTC
side: long
result: +3.9R (trade now closed)
level of interest - 25581

reasoning for interest:
last low in series of resting daily swing lows liquidity.

note - 25581 is the level on BTC/USD (Inverse)

Further context

Daily series of lows, are literally part of my daily routine, I find them extremely powerful when looking for “not so obvious” regions of liquidity. Most people are always looking for the major pivot high/lows, however using the daily highs/lows it provides really reliable intra pivot liquidity to take high conviction trades from. 

Execution

executed timeframe - 5m 

- generic 5m sfp candle
- spike in volume
- extended delta minimum
- trapped value area
- trapped new shorts

note - when I executed this trade, I had anticipated the candle closing where it did, I did not wait for the candle close to enter, although this Is what I recommend to the majority who are just now trying out these methods. From my own transparent standpoint, I anticipate the candle closing that high through the use of seeing the new shorts fairly early with orders then pulled from the order book allowing for an easier move up.

Pulling the trigger - as stated previously, I anticipated the candle close rather than waiting for the close to get in on the trade.

I also note that the time of this trade was rather significant to me having really good conviction in the trade, it occurred on a Sunday evening, which is a really typical time for me to have success trading these internal liquidity plays.

so note that is Sunday evening UTC (no specific time, generally beyond 7pm on a Sunday UTC) in which these plays have higher conviction from my own stats.

Invalidation - typical invalidation on this trade would have been below the absolute low of the sfp candle, however when the wick of the sfp candle is fairly large and in this case also had trapped traders, I did not use the absolute low.

I used the lowest HVN (high volume node) of the candle - the thought process behind this was that if this was lost the entire candle would retrace, thus nullify the idea of putting my stop below the absolute low.

Trade Management

The beauty of this internal liquidity (as well as myself putting in countless hours/trades to forward test etc this method) is they often turn into fairly large moves, but in terms of the move itself, it would generally end in moving to the next hunt of liquidity in the opposite direction (direction of the new trade taken).

My first and only tp hit on this trade was 80% at 25930 region, now although that was a great tp. Something I have noted, is to not leave space if the tp I'm looking to take is just before a large round value being hit, for example in this case I could have held off for tp at 26k rather than leaving that $70 region on the table.

Beyond Tp1 - In this scenario I only had 20% remaining on the trade, I did not leave the remainder to get stopped at where I entered. In a scenario as such, I took an anchored vwap from the low of the move (where I entered)

OBSERVATIONS:

#1 - In a similar version to the previous log, I was focused on the session candles (thread to come on this soon), however I was focused at looking at liquidity, rather than the opens/closes of candles. I was monitoring the resting liquidity of certain sessions, in a similar fashion to the daily highs/lows.

In particular resting liquidity beneath NY session highs and lows, I am monitoring this in a similar way to the daily highs/lows however have not collected enough data to directly take trades solely off of those levels yet. It is definitely something which in the coming weeks, I would have collected enough data as to where I would be able to take trades via those levels.

#2 - Been trialling trading off of the anchored vwap more, in confluence with liquidity. i.e. anchored vwap pull from a good low, comes into confluence with some internal liquidity to continue the new trending move. Below is a good example of what I'm referring to.

p.s.

I’ve just released a new trading notion workspace, which I’ve been working on for a few weeks now for my own trading, it has a simplistic look alongside some complex personalisation to it.

The link below will take you to whop where you can purchase it (one time fee) alongside a video guide on how to use the workspace from top to bottom.

If you do not want that, here is a link to a completely free previous version I created which does not have all the same features as the one above 👇

Thank you and I hope you found some value