🔥 A Step-by-Step Guide to Implementing the Article "Follow the Liquidity Trail" in Practice
⚡ Quick Introduction
This guide takes you from the idea to practical implementation in the market.
Follow the steps literally and stick to the rules — the market punishes those who rush.
🧰 The tools you will need before starting
Trading Platform (Binance) + Order Book Depth.
Transfer/Whale Alerts Service (Whale Alert / CryptoQuant / Glassnode).
Volume panel and candlestick files (1H / 4H) + MA25/99 indicators.
Diary/Journal to record every trade.
1) Setting up the Watchlist (before the market)
Choose 3–5 assets to follow (e.g., SOL, BTC, ETH).
Set alerts for:
• Net inflows to/from exchanges (Inflow/Outflow).
• Large depth orders on Binance (>10k coin or per pair).
• Sudden volume spikes.
2) Market scan and search for liquidity areas (LFZ)
Open the 1H and 4H chart and look for areas where retail stop losses have repeated.
Define:
• The last peak/trough recently broken (potential sweep location).
• Range of 1–3 levels surrounding the area (this is the LFZ).
Example: If the price breaks above 123 then quickly retraces → 123 is a potential LFZ.
3) Confirm the sweep (don’t rush)
Buy two conditions for confirmation before preparing to enter:
A clear "sweep" occurred (long wick or shift in the order book).
Spike in volume accompanies the sweep.
If the sweep appeared without volume → ignore.
4) Entry plan (strict rules)
Do not enter during the sweep candle.
Enter at the first retest of the LFZ after the sweep.
Entry size: 1–2% of capital for trial movement (adjust according to your risk).
If the price strongly recovers at the test with a pin/bar candle → open 50% of the planned position.
5) Stop-Loss
Place a tight stop loss below the wick or below the next strong support.
Rule: Maximum loss on a trade should not exceed 1–2% of capital.
6) Take Profit levels
Divide the target into 2–3 parts:
• TP1 = The nearest liquidity area (Quick gain 30–50%).
• TP2 = Average resistance (30–40%).
• TP3 = Partial exit at strong resistance/moving average areas (20–30%).
7) Managing the trade after entry
If the price crosses the LFZ with clear volume → move the stop to breakeven after achieving TP1.
Monitor exchange flows: Large deposits arriving → Unwind part of the position.
Use smaller size and strict management during news or the first/last two hours of the market.
8) What to do if the test fails (False-Break)
If the price returns and tests the LFZ and fails (breakdown with volume) → close 100% or most of the position.
Mark "LFZ failure" in the journal and review why (found distortion, spike without volume, etc.).
9) Psychological behavior and routine
Before any entry: Breathe for 30 seconds and check 3 things: volume, exchange flow, unexpected news.
Don’t increase the trade size to compensate for a previous loss.
Stick to your plan even if the "FOMO" urge comes.
🔁 10) Review after each trade (Journal Template)
Date / Pair:
Entry reason (LFZ? Sweep? Whale alert?)
Position size/Risk balance:
Stop/TP locations:
Result: Profit/Loss (%) + Notes: What did you learn?
✅ Quick checklist (before pressing BUY)
Is the sweep with volume? ✅
Is the LFZ clearly defined? ✅
Is the trade size ≤ 2% of capital? ✅
Is there a defined stop-loss? ✅
Is there no immediate news that could move the market? ✅
If all answers are yes → execute the plan.
🌟 Conclusion and tips
Share a screenshot of the price with LFZ and stop/TP marked.
Mention that the risk management plan is more important than the profit ratio.
