Liquidity Theory
LessonsCourse 3: Sharpening Your Edge › Applying the Basics
Course 3: Sharpening Your Edge · Applying the Basics

Identifying Access Points — Understanding Consolidation

Module 3 · Session 1
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Introduction

Consolidation = Access Points — the Foundation of All Entries

Every tradeable entry point in the market comes from consolidation. When price consolidates, it creates a zone where buyers and sellers have wrestled for control. That zone — whether it ends in a continuation or a reversal — becomes a DBS or SSR access point that price will reference on every future visit.

Lesson

DBS and SSR — Definition, Strength, and Depletion

The three fundamentals of a valid DBS or SSR zone are Strength, Time, and the Depletion Factor. Understanding all three lets you immediately assess the quality of any zone — and determine whether it is worth trading. If the zone does not stand out at first glance, it is not a valid zone.

Check Yourself

Price drops sharply into a new area and immediately reverses with a strong explosive move up, creating a new Higher High. No consolidation occurred — just a single dramatic down candle before the reversal. What type of zone has formed and what is its key quality?

Answer it (with a live chart) in the interactive lesson.

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Educational content only — trading involves substantial risk and most beginners lose money. Nothing here is financial advice.