Notes:
Multi-Timeframe Liquidity Reaction Framework
Define Your Timeframes
Higher-TF (Daily / 4-hour)
Map major liquidity zones (daily highs/lows, order-block clusters).
Note structural breaks and fair-value gaps around $3,200–$3,300 and $3,800–$4,000 (Murphy, 1999).
Mid-TF (1-hour)
Observe zone tests: wick‐rejections, two‐bar reversals, volume spikes.
Tag each test as “acceptance” (close within zone) or “rejection” (long wick through zone) (Bulkowski, 2008).
Lower-TF (15-/5-minute)
Fine-tune entries: look for micro-order-blocks, VWAP pullbacks, or oscillators divergences immediately post-test.
Set Up Your Research Template
Zone (TF) Date/Time Price Level Test Type Volume %Δ Next Move (pips / %) Notes
Daily Highs (D) 2025-08-03 07:00 $3,800 Rejection +45% +2.5% ↑ Bearish wick test
Order Block (4H) 2025-08-02 16:00 $3,250 Acceptance +30% +1.8% ↑ Smooth retest
… … … … … … …
Measure & Analyze
Wick Length vs. Zone Width: Wick ≥ 50% zone width → higher-prob rejection.
Volume Delta: Spike > 30% above 20-period average → institutional activity.
Post-Test Trend: Record 1-bar, 3-bar, and 6-bar returns after zone interaction.
Iterate & Refine
Review which zones yield reliable continuations versus false breaks.
Adjust zone boundaries (expand/contract by ATR) based on statistical edge.
Incorporate into your DSS for automated alerts when high-prob setups appear.
“By systematically logging zone interactions and subsequent moves, you’ll quantify which liquidity tests offer the best risk-reward and tune your entries for optimal efficiency.”
References
Bulkowski, T. N. (2008). Encyclopedia of candlestick charts. John Wiley & Sons.
Murphy, J. J. (1999). Technical analysis of the financial markets. New York Institute of Finance.
Multi-Timeframe Liquidity Reaction Framework
Define Your Timeframes
Higher-TF (Daily / 4-hour)
Map major liquidity zones (daily highs/lows, order-block clusters).
Note structural breaks and fair-value gaps around $3,200–$3,300 and $3,800–$4,000 (Murphy, 1999).
Mid-TF (1-hour)
Observe zone tests: wick‐rejections, two‐bar reversals, volume spikes.
Tag each test as “acceptance” (close within zone) or “rejection” (long wick through zone) (Bulkowski, 2008).
Lower-TF (15-/5-minute)
Fine-tune entries: look for micro-order-blocks, VWAP pullbacks, or oscillators divergences immediately post-test.
Set Up Your Research Template
Zone (TF) Date/Time Price Level Test Type Volume %Δ Next Move (pips / %) Notes
Daily Highs (D) 2025-08-03 07:00 $3,800 Rejection +45% +2.5% ↑ Bearish wick test
Order Block (4H) 2025-08-02 16:00 $3,250 Acceptance +30% +1.8% ↑ Smooth retest
… … … … … … …
Measure & Analyze
Wick Length vs. Zone Width: Wick ≥ 50% zone width → higher-prob rejection.
Volume Delta: Spike > 30% above 20-period average → institutional activity.
Post-Test Trend: Record 1-bar, 3-bar, and 6-bar returns after zone interaction.
Iterate & Refine
Review which zones yield reliable continuations versus false breaks.
Adjust zone boundaries (expand/contract by ATR) based on statistical edge.
Incorporate into your DSS for automated alerts when high-prob setups appear.
“By systematically logging zone interactions and subsequent moves, you’ll quantify which liquidity tests offer the best risk-reward and tune your entries for optimal efficiency.”
References
Bulkowski, T. N. (2008). Encyclopedia of candlestick charts. John Wiley & Sons.
Murphy, J. J. (1999). Technical analysis of the financial markets. New York Institute of Finance.
WaverVanir ⚡ To grow and conquer
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Not Investment Advice
stocktwits.com/WaverVanir | wavervanir.com | buymeacoffee.com/wavervanir
Not Investment Advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
WaverVanir ⚡ To grow and conquer
stocktwits.com/WaverVanir | wavervanir.com | buymeacoffee.com/wavervanir
Not Investment Advice
stocktwits.com/WaverVanir | wavervanir.com | buymeacoffee.com/wavervanir
Not Investment Advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.