Liquidity Trendlines Breakout Strategy

Overview

About

The Liquidity Trendlines Breakout Strategy uses Lune Market Analysis Premium, Lune Technical Analysis Premium, and Lune Oscillator Premium to identify and act on significant trendline breakouts. This strategy combines trendline detection with liquidity calculations and market sentiment to find optimal entry points for trades. It's suitable for various trading styles, including scalp, day, swing, and position trading.

Trading Style

• Scalp Trading

• Day Trading

• Swing Trading

• Position Trading

Indicator(s) Required

• Lune Market Analysis Premium

• Lune Technical Analysis Premium

• Lune Oscillator Premium

Indicator Settings

• Lune Market Analysis Premium

  • Candle Coloring: Market Sentiment

• Lune Technical Analysis Premium

  • Trendlines: Enabled | Long-term OR Mid-term

    • Liquidity Calculations: Enabled

• Lune Oscillator Premium

  • Sensitivity: Fast

  • Velocity: Fast

  • Market Peak: Enabled | Sensitivity: 1

  • Money Pulse: Enabled | Sensitivity: 1

  • Power Wave: Enabled | Sensitivity: 3

How It Works

Entering Trade

• Bullish Trades: A resistant Liquidity Trendline needs to be detected. Enter the trade when the price breaks out above this trendline, and the Market Sentiment is bullish (the candle is green).

• Bearish Trades: A support Liquidity Trendline needs to be detected. Enter the trade when the price breaks out below this trendline, and the Market Sentiment is bearish (the candle is red).

Stop Loss

• Bullish Trades: Set the stop loss at the recent market low.

• Bearish Trades: Set the stop loss at the recent market high.

Exiting Trade

• Bullish Trades: Exit the trade when a bearish Market Peak is detected, the Money Flow becomes bearish, or the Power Wave begins to lose momentum.

• Bearish Trades: Exit the trade when a bullish Market Peak is detected, the Money Flow becomes bullish, or the Power Wave begins to gain momentum.

Step-by-Step Walkthrough

Bullish Scenario - Example #1

Step 1

Wait for a resistant Liquidity Trendline to be detected. This indicates a bullish potential.

Step 2

• Wait for the price to break through this trendline. The Market Sentiment should be bullish (the candle is green).

• Enter a long trade when these conditions are met.

• Set the stop loss at the recent market low.

Step 3

Take profit when Lune Oscillator Premium starts to indicate bearish sentiment, such as a bearish Market Peak, a decreasing Power Wave, or a bearish Money Pulse.

Bearish Scenario - Example #2

Step 1

Wait for a support Liquidity Trendline to be detected. This indicates a bearish potential.

Step 2

• Wait for the price to break through this trendline. The Market Sentiment should be bearish (the candle is red).

• Enter a short trade when these conditions are met.

• Set the stop loss at the recent market high.

Step 3

Take profit when Lune Oscillator Premium starts to indicate bullish sentiment, such as a bullish Market Peak, an increasing Power Wave, or a bullish Money Pulse.

Conclusion

The Liquidity Trendlines Breakout Strategy excels in using trendlines and liquidity indicators to guide trading decisions, emphasizing clear entry and exit points. By focusing on market sentiment and breakout signals, traders can make informed and effective trades. This strategy highlights the power of combining detailed market analysis with advanced trading tools to improve trading outcomes across different market conditions.