Liquidity, BOS and CHOCH: The missing trilogy in your trading. Why do traders lose money even though they read the chart well? 80% of the time it is because they do not understand where the real money is in the market.

Today come on we will break down three concepts that will literally change how you operate BTC and any other asset.

What is liquidity really?

Forget complicated definitions. Liquidity = money in motion. It’s all those buy and sell orders you see in the order book. Imagine the market as an ocean: more liquidity = water flowing easily; little liquidity = stagnant water.

Real example: There are 10 BTC for sale at $64,000 and 50 buyers wanting to enter. Those 10 BTC + $640,000 = the available liquidity. If the buyers leave, the market runs dry.

Apply it like this:

• Before trading, check if there is enough liquidity in your entry zone (look at the order book)
• When you set take profit, check if there is liquidity there as well.
• If liquidity is low in your TP, sell partially and let the rest run.

BOS: When the market says “I'm serious”

BOS = Break of Structure. It sounds complicated, but it's simple: when the market breaks a high after retracing at least 5-7 candles, that is BOS.

It's not just any breakout. There has to be real retracement involved. Otherwise, it's just noise.

In trading: Use the BOS as confirmation that the trend continues. When you see BOS, place a stop just before the recent low. This way you protect profits and maximize the next move.

CHOCH: The game twist

CHOCH = Change of Character. It is when the trend says “change of plans”.

CHOCH Signals:

• The market stops making higher highs
• Create lower lows
• Break the previous minimum and go down even more

When you see CHOCH confirmed, move your stop loss to the second low. With this technique, you avoid big losses over 70% of the time ( although sometimes they still catch you ).

Set up BTC now: 64,000 dollars

We expect a retracement to 62,400-63,200. If it bounces from there = confirmation to run towards 69,900. Everything depends on Powell's speech today.

Use liquidity + BOS + CHOCH together. Not just one. The magic is in the combination.

Fact: Traders who understand liquidity earn 3x more than those who only look at candles. It's not magic, it's market structure.

If it's clear to you, share. If you have questions, comment below.

Follow for more detailed analysis after Powell.