Lecture 20: High-Resistance vs. Low-Resistance Liquidity Runs

Title: High-Resistance vs. Low-Resistance Liquidity Runs
Date: August 29, 2024
Mentor: Michael J. Huddleston (The Inner Circle Trader)

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1. Executive Summary & Core Objective

Lecture #20 presents the distinction between Low-Resistance Liquidity Runs (LRLR) and High-Resistance Liquidity Runs (HRLR), providing traders with a framework to filter high-probability environments [325, 327, 328].

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2. Core Concepts & Technical Mechanics

A. Low-Resistance Liquidity Runs (LRLR)

• Characteristics: Price expands rapidly and smoothly toward clean relative equal highs/lows with no opposing PD arrays in its path [327, 328].
• Execution: Generates clean, fast fills with minimal drawdowns and high win rates [328].

B. High-Resistance Liquidity Runs (HRLR)

• Characteristics: Price moves choppily, encountering multiple opposing PD arrays, historical gaps, and conflicting session structures [327, 328].
• Execution: Extremely difficult to trade; requires nimble partial profit-taking or complete avoidance [328].

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3. Trading Discipline, Mindset & Psychology

A. Selective Environment Filtering

• Professional traders only commit capital during Low-Resistance Liquidity Run conditions and stay on the sidelines during High-Resistance environments [328].

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4. Step-by-Step Action Plan & Homework

1. Evaluate whether the path to your target is clear of opposing PD arrays (LRLR) or cluttered (HRLR) [327, 328].
2. Refrain from taking entries when HRLR conditions are present [328].

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Reference Source Link:
Watch ICT 2024 Mentorship - Lecture #20 (August 29, 2024) on YouTubeWatch on YouTube