Some of the confirmation/CISD formations you may see when price taps into a liquidity pool that confirms your bias:
Key takeaway:
Key Levels = Constant.
This means a key level must always be present before any of these confirmations can form and be Valid.
Price will always be targeting a structural DOL, so your bias still has to be correct first.
From there:
Price feeds into a counter-acting POI → forms a CISD pattern → breaks below/above the source candle of the confirmation → and that gives you your valid entry + invalidation.
Another important note:
A Key Level is essentially a liquidity pool.
When many of you hear “liquidity pool,” you immediately think of only inducements, traps, equal highs/lows etc.
But:
An old high/low is a liquidity pool.
A Fair Value Gap is a liquidity pool.
An Order Block is a liquidity pool.
Essentially, anything price needs to feed into before delivering is a liquidity pool.
That’s why the Key Level comes first.
KL → Confirmation/CISD → Entry → Target.
Wishing us all a Profitable Week ahead💜
The older you become, the more you realize that a few genuine people, a peaceful mind, and a meaningful life are worth far more than being known by everyone.
You can spend years searching for happiness in people, places, and possessions before realizing that peace begins with how you learn to live with yourself.
This is one of the best ways to confirm your trade.
Combine it with a CISD or IFVG, and you’ll never want to trade without it again.
Weekend read. Read the whole thread.
"Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets." ~ Alexander Elder
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