The Hidden Landmarks of Price Action: Trading With Liquidity Zones

Identifying where price has fluctuated can offer powerful clues for analyzing potential areas of market interest. In this presentation, Daniel Sinnig of TradingIndicators.com demonstrated how spotting liquidity zones—support and resistance levels formed by institutional buying or selling—may help traders uncover hidden opportunities within the chaos of the markets.

 

Escape timeframe tunnel vision

 

One of the first concepts Daniel addressed was timeframe tunnel vision—the mistake of relying solely on low timeframes without seeing the broader market context. A trade that may seem promising on a one-minute chart could fall apart when viewed against resistance on a 30-minute chart.
To avoid this pitfall, traders may look to higher timeframes to identify key price levels that are easy to miss, uncovering consistent historical landmarks that serve as guideposts for strategic trade decisions.

 

Support, resistance, and the footprint of big money

 

Every chart, regardless of the asset or timeframe, contains landmarks—past price levels where notable activity has occurred. Often referred to as support and resistance, this data can help indicate where price may fluctuate, driven by shifts in supply and demand.
While retail traders don’t move markets, they can spot the footprints left by institutional traders. According to Daniel, identifying these footprints is crucial: “The big players are calling the shots, but we can follow the patterns and potentially profit.”

 

Three key trade setups

 

Daniel outlined three common setups using liquidity zones:

• The bounce trade: This is when price approaches a support or resistance zone and reverses direction. A support zone may hold and trigger a long opportunity; a resistance zone may reject price and lead to a short setup.
• The zone break: This is when price breaks through support or resistance and continues in that direction. These breakouts can offer high-conviction trade setups with momentum on their side. Although the breakouts are never guaranteed and always offer risk.
• The zone break retrace: After a breakout, price may return to the broken level—which now acts as support or resistance—and bounce again in the original breakout direction. This setup offers clearly defined risk parameters.

 

Automating insights with Liquidity IQ

 

To help identify these zones in real time, Daniel designed the Liquidity IQ indicator. This tool automatically draws support and resistance zones on the chart, helping traders visualize market structure without the hassle of manual adjustments.

Rather than relying on intuition, traders can use Liquidity IQ to frame their analysis consistently and systematically. For those who prefer trading off lower timeframes, the tool also includes a feature to project higher timeframe levels directly onto the current chart, helping mitigate timeframe tunnel vision.

 

Adding momentum with MA Rush

 

Alongside Liquidity IQ, Daniel also showcased MA Rush, a companion indicator that identifies current market momentum. When combining these tools, traders can filter setups that align with trend direction—for example, avoiding a short at resistance during an uptrend.

This context can help traders decide when to act and when not to, ensuring that trade ideas are supported by both structure and trend.

 

Empower your trading decisions with structure

 

Markets may appear chaotic, especially on lower timeframes, but when traders can identify key liquidity zones, they may begin to understand the underlying structure at play.

Whether you’re looking for bounce opportunities, breakout trades, or retracements to a broken zone, having clearly defined levels on your chart can inform better decisions and help you manage risk more effectively.

To see these tools in action, explore the Liquidity IQ and MA Rush indicators from TradingIndicators.com and learn how structured analysis can elevate your trading.

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