Understanding of Hyblock and Its Use Case In Trading Liquidity
Hyblock is a website that you pay a monthly subscription to, allowing you to access some technical data about liquidation levels on all time frames. This allows the trader to see potential price points where the market maker might be aiming for.
Market makers use this liquidity volume to fill their own orders. Unlike retail orders, market maker orders are just too big to fill from the order book by itself, so they need some liquidity in the market.
The market makers need to engineer their own liquidity either by pushing the price one way and then heading the other way, or running highs and lows before continuing in that direction. A high or low could hold stop loss orders from traders that they can use to generate liquidity.
A market maker would be classified as a bank, hedge fund, or institutional trader – an entity with a large amount of money.
As you can see in the photo above, the yellow on the charts is showing high liquidation levels. There, you can see prices become like a magnet to these levels over time. It may take days, weeks, or months for the price to find these levels, but it usually finds its way there at some stage or another.
A nice confluence I’m starting to use a lot in my own trading, and it’s something that can add a little extra edge in your own trading if you understand that markets bounce from one draw to another. So, you can start to be on the right side of things when markets are moving.
Understanding of Hyblock and Its Use Case In Trading Liquidity
Hyblock is a website that you pay a monthly subscription to, allowing you to access some technical data about liquidation levels on all time frames. This allows the trader to see potential price points where the market maker might be aiming for.
Market makers use this liquidity volume to fill their own orders. Unlike retail orders, market maker orders are just too big to fill from the order book by itself, so they need some liquidity in the market.
The market makers need to engineer their own liquidity either by pushing the price one way and then heading the other way, or running highs and lows before continuing in that direction. A high or low could hold stop loss orders from traders that they can use to generate liquidity.
A market maker would be classified as a bank, hedge fund, or institutional trader – an entity with a large amount of money.
As you can see in the photo above, the yellow on the charts is showing high liquidation levels. There, you can see prices become like a magnet to these levels over time. It may take days, weeks, or months for the price to find these levels, but it usually finds its way there at some stage or another.
A nice confluence I’m starting to use a lot in my own trading, and it’s something that can add a little extra edge in your own trading if you understand that markets bounce from one draw to another. So, you can start to be on the right side of things when markets are moving.