Trading Was Hard, Until I Understood These Two Concepts

Overview

The presenter explains why their earlier day trading was unprofitable—often blowing accounts and getting stopped out—and claims that two “concepts” fixed those issues by improving:

• Trade selection
• Stop-loss placement

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The Two Core Concepts

High Resistance Liquidity (HRL)

A swing high/low that has been swept (taken out) previously. Because stops/orders there were already triggered, price must “work harder” to reach it again.

Low Resistance Liquidity (LRL)

A swing high/low that is unswept (has not taken out prior highs/lows). These levels are described as clustered/magnet-like—many stop orders remain, making price more likely to run there.

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Claimed Framework / Step-by-Step Logic

1) Define liquidity locations

• Identify swing highs/swing lows (described as multi-candle structure).
• Categorize the resulting liquidity as:
  • Buyside liquidity: often associated with buy stops above swing highs
  • Sellside liquidity: often associated with sell stops below swing lows

2) Select targets and stops

Bias rule (directional)

• If LRL is on the buy side and HRL is on the sell side → bullish bias
• If LRL is on the sell side and HRL is on the buy side → bearish bias
• If HRL isn’t formed yet → wait until it forms before taking the trade

Stop-loss placement rule

• Put stop losses at HRL (“protected stop-losses”)

Take-profit placement rule

• Target LRL (“unprotected targets” / where price is likely to run)

3) Increase trade quality (“A+ setup”)

• Stacking / confluence
  • LRL levels can be strengthened when they are bunched/stacked (multiple unswept swing points).
• Higher timeframe alignment
  • The presenter emphasizes that higher-time-frame structure should match the lower-time-frame setup.
• “Gap” constructs (terminology used in subtitles)
  • HRL/LRL are often tied to fair value gaps and value/rally/fair-value gap references (exact definitions not provided in detail).
  • Stronger application is associated with 5-minute timeframe and above.
• Confirmation
  • Repeated mention of “inverse” reactions and “displacement” from the key level as confirmation components.

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Key Recommendations / Cautions

• Do not place stop-losses at your target
  • “Stops go at high resistance liquidity and your targets go at low resistance liquidity.”
• Do not take trades if liquidity is not aligned
  • If HRL/LRL are not properly paired (stop protection vs. target magnet), the win rate is said to drop.
• Avoid “fading” without alignment
  • Bad examples include shorts where:
    • targets aren’t truly LRL (or alignment is missing)
    • stop-loss protection is inadequate relative to expected expansion

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Performance / Outcome Claims

• Claims earlier losses came from wrong stop placement and trade selection.
• Mentions a “100% winner for the past month, in June” (no sample size provided) during a “super hot streak.”
• Claims the concepts improved:
  • win rate
  • stop protection so targets get hit more reliably

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Instruments / Assets Mentioned

• ES (E-mini S&P 500)
• NQ (E-mini Nasdaq 100)
• AMD (mentioned in context of market structure / “inverse/chain of state”)
• Trading/session timing referenced:
  • 9:30 open
  • Asia session

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Numbers / Timing Explicitly Mentioned

• 5-minute timeframe and above for stronger liquidity/gap application
• 9:30 as a timing anchor for bias/trade direction
• Timeline cues:
  • June (hot streak claim)
  • July 20 (example of a “good short setup”)
  • “a couple days ago,” “Thursday,” and “Monday” (example references; exact dates not always clear)

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Disclosures / Disclaimers

• No explicit “not financial advice” or standard legal disclaimer is shown in the provided subtitle/disclosure content.
• Mentorship promotion is included, but no standard investing disclaimer is shown.

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Presenter / Sources Mentioned

• Presenter referenced as “Blake” / “PB Blake YT channel”
• Mentorship students mentioned: Gus and Auggie
• Mentions working with “Pat” in the context of the June hot streak