[AlbaTherium] Sessional & Daily's liquidities - Beta

2023年10月9日

[AlbaTherium] Sessional & Daily Liquidities - Beta: Harnessing the Power of the Institutional Funding Candle (IFC) in Trading

Introduction:
The [AlbaTherium] Sessional & Daily Liquidities - Beta indicator places the Institutional Funding Candle (IFC) at its core. Within the realm of trading, the IFC stands as a key signal for identifying Points of Interest (POIs), offering traders invaluable insights into market dynamics. This document aims to illuminate the central role of the IFC within the [AlbaTherium] Sessional & Daily Liquidities - Beta indicator, explaining how it can be effectively utilized to spot significant changes in the market and seize trading opportunities.

Chapter 1: Sessional Liquidity concepts
The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and Trump’s favorite time to tweet (before he was banned), the New York session.

Historically, the forex market has three peak trading sessions. Traders often focus on one of the three trading periods, rather than attempt to trade the markets 24 hours per day. This is known as the “forex 3-session system“. These sessions consist of the Asian, European, and North American sessions, which are also called Tokyo, London, and New York sessions.

For that reason, a lot of trader put their stoploss right at the High or Low of their session, filling these price levels with liquidities. The market loves liquidities, they are like the “fuel” of the market. Price usually goes to these levels, takes out all the liquidities, and then returns to its original direction. This price behaviour indicates the presence of players – banks, institutions,... – driving the market to their own profit.


The same logic applies with Daily, Weekly and Monthly high/low levels.

Chapter 2: Deciphering the Institutional Funding Candle

2.1 Unveiling the Essence of the Institutional Funding Candle (IFC)
- IFC concept is the core of this indicator. It is recommended to use this indicator on high timeframes, like 1H or 4H charts, as those are the timeframes which big players look at.
- The presence of IFC candles means a significant amount of stop loss is triggered, and price have a tendency to reverse.

2.2 Criteria for IFC Identification
The definition of specific conditions that characterize an IFC within the [AlbaTherium] Sessional & Daily Liquidities - Beta indicator:
- A breach of Previous day, Previous week, or Previous month’s High or Low levels or a breach of major Session Highs or Lows.
- Price made an immediate reverse, creating a decent distance from the wicks.

Chapter 2: Trading Strategies with the IFC
User should treat these signals with cautions, and only take trades with multi confluences.
This pictures below demonstrate a strategy to trade with this indicator, taking 1H HTF trend and 5m LTF ChoCh and Single Candle Order Block as confluences.



Conclusion:
The [AlbaTherium] Sessional & Daily Liquidities - Beta indicator, centered around the Institutional Funding Candle (IFC), stands as a potent tool for traders, offering them the means to spot critical inflection points in the market. By understanding the role of the IFC in violating significant swing highs or lows and major session highs or lows, traders can make informed decisions and seize opportunities within the ever-evolving realm of financial markets. It's crucial to note that while IFC candle colors can provide insights, they do not unilaterally dictate market direction. Furthermore, candle closure can be a valuable consideration in specific situations, particularly when evaluating other High Time Frame POIs.

The real-world examples presented in this document within the [AlbaTherium] Sessional & Daily Liquidities - Beta indicator offer a tangible insight into the world of IFC trading. Harness the potential of the Institutional Funding Candle within the [AlbaTherium] Sessional & Daily Liquidities - Beta indicator to elevate your trading strategies and make well-informed decisions in the dynamic landscape of financial markets.