Chapter 4 · Lesson 24 min
Combine LMA with support and resistance
Liquidity Average (LMA) shows an average price for trader positions. A rising line means the average is moving higher. A falling line means it is moving lower. The candles show the current price, which can move in a different direction.
Use the purple LMA line to read the average, then locate R5 above price and S5 below it. The average describes positioning; the S/R lines mark possible reaction areas. Neither tells you the next candle.
The numbers in each pane title are for the latest candle. Move over the chart to read the values of any other candle.
S/R means support and resistance. A band below price is a possible support area. A band above price is a possible resistance area.
When price reaches a band, look at the candles. Do they slow down, turn back or pass through? Several bands close together mark a shared area to watch.
Price may react near these areas or pass straight through. The lines do not tell you the next price move.
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Liquidity Average and S/R bands: Shows an average price area and possible support and resistance areas.