See that doji candle on RIVN back in September? The market
hates such imbalances and sure enough it was cleaned up (liquidity
grab)
Click on my chart from September and study this closely!
Some here were stopped out - you provided exit liquidity.
Thats how these algos work. I discuss this constantly with ES
but the same concept applies here. So when you see such imbalances
on the charts, keep this in the back of your mind especially around
news events. This is an extremely powerful concept I'm
sharing. Term is FBD ( Failed breakdown) and there are
traders that do this on various time frames daily as their only
strategy. This is exactly what algos hunt for liquidity, but
you wait for a reclaim of previous level for confirmation.
Understand?
I actually updated that daily chart on RIVN earlier today with
that horizontal line after I noticed the FBD following earnigs.
Notice the equal highs? Magnet for price!
I understand the Liquidity Grab and the Failed Breakdown, but
how does the huge doji candle represent an imbalance?
Yesterday's close below support looks very bearish to me.
Can you explain what made you look for a reversal?
I was not watching this stock, or even the market this morning,
but in general, I would have bought a gap above a bearish candle
like that had I seen it.
Very simple, such doji candles are where not much trading took
place and are often re-tested as a result.
As I stated reversals tend to occur around news events such as
earnings being reported.
I personally was not tracking that closely but its imperative to
be aware of such news events and then react to a possible trigger
like a gap up as you mentioned. I saw it just after it had moved
above the equal high to be honest. I was focused on ES
RIVN Updated
Posted by steve on 23rd of Sep 2025 at 01:20 pm
RIVN - Chart Link- same day (9/16) that I featured DNA/UPS - trail up stops here as well
UPS continues to bump along but the others were nice trades
See that doji candle on
Posted by steve on 5th of Nov 2025 at 10:36 pm
See that doji candle on RIVN back in September? The market hates such imbalances and sure enough it was cleaned up (liquidity grab)
Click on my chart from September and study this closely! Some here were stopped out - you provided exit liquidity. Thats how these algos work. I discuss this constantly with ES but the same concept applies here. So when you see such imbalances on the charts, keep this in the back of your mind especially around news events. This is an extremely powerful concept I'm sharing. Term is FBD ( Failed breakdown) and there are traders that do this on various time frames daily as their only strategy. This is exactly what algos hunt for liquidity, but you wait for a reclaim of previous level for confirmation. Understand?
I actually updated that daily chart on RIVN earlier today with that horizontal line after I noticed the FBD following earnigs. Notice the equal highs? Magnet for price!
Re-post with details on the
Posted by steve on 11th of Nov 2025 at 04:57 pm
Re-post with details on the trade from the liquidity grab to the pivot break.
Review closely
Steve, I understand the Liquidity Grab
Posted by bpt_ken on 5th of Nov 2025 at 11:36 pm
Steve,
I understand the Liquidity Grab and the Failed Breakdown, but how does the huge doji candle represent an imbalance?
Yesterday's close below support looks very bearish to me. Can you explain what made you look for a reversal?
I was not watching this stock, or even the market this morning, but in general, I would have bought a gap above a bearish candle like that had I seen it.
Thanks!
Very simple, such doji candles
Posted by steve on 6th of Nov 2025 at 06:29 am
Very simple, such doji candles are where not much trading took place and are often re-tested as a result.
As I stated reversals tend to occur around news events such as earnings being reported.
I personally was not tracking that closely but its imperative to be aware of such news events and then react to a possible trigger like a gap up as you mentioned. I saw it just after it had moved above the equal high to be honest. I was focused on ES
@steve - what's your experience
Posted by Orangeman on 6th of Nov 2025 at 09:39 am
@steve - what's your experience with the inverse (FBU).
Example QCOM has a long wick candle from 27 Oct. Looks to me like that's a good upside target over time.
Interested in your thoughts on whether one direction is more reliable than the other.