Liquidity Pool Theory

I have been teaching and using my proprietary liquidity pool theory for a number of years now, but never has it been more applicable then last month in the Forex market. Just about every traditional setup I saw triggered, then was taken out and shot.

I have had so many emails and questions which all come down to the same question… “why is this happening to me.. are they targeting me personally? ” The answer is NO…you just ran afoul of a liquidity pool inversion.

To better explain this concept, I have created the following videos…Enjoy!

This entry was posted on Wednesday, October 7th, 2009 at 8:43 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Liquidity Pool Theory”

  • Susan Kishner Says:
    October 7th, 2009 at 9:14 pm

    I finally decided to write a comment on your blog. I just wanted to say good job. I really enjoy reading your posts.

  • Alex Says:
    October 10th, 2009 at 5:38 pm

    I have never heard of LPT, it is a interesting concept if I understand it correctly. Do you use a liquidity consumer sentiment indicator or a liquidity provider sentiment indicator or both? The liquidity index is based on transaction flow information and is designed to show long and short ratios in the most popular currencies and currency pairs consolidated by liquidity consumers and providers.This web-page may help with your liquidity pool theory:
    http://www.dukascopy.com/swiss/english/marketwatch/sentiment/

  • boyoder Says:
    October 13th, 2009 at 5:49 pm

    The Liquidity Pool Theory is a proprietary concept I developed a few years ago as I sought to explain why the traditional technical setups were failing in such numbers. It seemed that the market was specifically targeting these patterns for destruction, and I was trying to figure out who was trading against what had been for years edge filled situations…

    I came up with LPT, and from that have come a number of tools I use for myself and my one on one consulting clients to dance around the minefields the current market has thrown up around technical analysis. I do not use any external tools or sentiment indicators…just the standard price and volume info with a few derivative indicators I use as training wheels for my clients as they train their eye.

    If you are interested in learning more or finding out how some one on one sessions could help optimizi your current trade plan’s edge, drop me a line at info@cashbombsequence.com

Leave a Reply