A liquidity box has 2 features:
- it is an area where there are clouds of stop orders (so that when price hits its baseline, it triggers a chain effect making price run to the other side of the box)
- it is time-sensitive: this area is at its best when it is liquid at its most = in certain hours of the day only
We detect liquidity boxes by using relevant confluences of (modified) fibo fans pinned on the past relevant swing, preferably in M5-M15 for an Intraday Operativity.
As soon as 50% of the ultimate target is reached, I move sl to break-even.
Money management depends on 2 factors:
- tp/sl (because I want to risk max 4% / trade, therefore all is derived from sl)
- news upcoming after my trade has triggered (so if there will be important news and I am floating in the market I scale down the opened trade until I reach a right proportion compared to days when there are no important news between me and my targets).
Here an example from 2020.04.20 on EURNZDe, M5:
EURNZD_M5_ 20200420_BUYLIMITTRIGGERED1366×662 19.5 KB
EURNZD_M5_ 20200421_TARGETREACHED1366×661 18.6 KB
Here operativity for today on EURAUDe:
EURAUDe_M15_ 202004241366×662 20.7 KB
FIBO ELLIPSE CONFIRMATION:
EURAUDe_M15_ 20200424_fiboellipse1366×665 24.2 KB
BUY STOP 1.7034 (TARGET: 1.7122)
SELL LIMIT 1.7157 (TARGET: 1.7086)
You are welcome to enjoy the liquidity box. Keep in mind that SL in pips must always be <= TP in pips. Pending are valid till the end of daily U.S. session.