I just reviewed yesterday's material on Order Blocks and FVG, and today I want to share something that many traders tend to overlook: the importance of understanding liquidity, BOS, and CHOCH in your daily trades.

Look, liquidity is simpler than it seems. Basically, it’s all those buy and sell orders you see in the order book. Imagine the market as an ocean where water flows in different directions—that’s liquidity moving. More available liquidity means you can enter and exit positions without impacting the price too much. It’s the opposite of a dry market where every move you make causes volatility.

Now, to increase your success rate, you need to verify something before trading. When you identify your Order Block zone, check if there’s enough buy liquidity there. If there is, go ahead with the trade. If not, better wait for another setup. Also, when setting your take profit, check the liquidity in that zone. If there’s a lot of liquidity, you can exit completely. If not, consider partial exits and let the rest run.

Now, here’s the interesting part: BOS or Break of Structure. When the market goes up, pulls back, and then breaks the previous high, that’s a BOS. But here’s the detail many forget: it only counts if the pullback was at least 5-7 candles. If it was shorter, don’t consider it a BOS. This concept is crucial to confirm that the bullish move will continue.

The CHOCH is the opposite. When the market stops making higher highs and starts making lower lows, that’s where the trend changes. You see the first low broken, then a lower high than the previous, and finally a lower low than the first. That first low is your CHOCH. It’s the signal that the trend has shifted from bullish to bearish.

In my spot trading, I constantly combine BOS and CHOCH. When I identify a CHOCH, I immediately adjust my stop loss to the second low. This protects you in most cases, although sometimes you get caught in false moves.

Talking about the current market, Bitcoin is trading around $68,770. I personally expect a pullback to the $62,400–$63,200 zone before we see a rebound toward $69,900. We’ll share a more detailed analysis after Powell’s speech today. Ethereum is at $2,110.

If you apply these BOS and CHOCH concepts along with what you learned yesterday about Order Blocks, you’ll notice a significant improvement in your entries. The key is patience and confirming these patterns before risking your capital. Let me know in the comments what topic you want us to cover next.