ALPHA TRADERS CLUB TRADING MODEL (2) - Trading Model - Liquidity Gaps and Rebalancing

Sep 18, 2026

Trading model explanation for ALPHA TRADERS CLUB, centered on how market aggregation engines combine buy/sell orders to generate subsequent price action (PA). Efficient PA aggregates all orders; inefficient PA leaves liquidity gaps that the market typically revisits to capture remaining liquidity. The model defines liquidity gap candles and logical levels (High, Low, EQ), then connects market direction via LGC formation and range identification. It also describes rebalancing and how sweeps, raids, and Liquidity Gap Reversals relate to starting or ending expansion.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages27

Reading Time1 h 8 min

AccessFree to download

Trading Model Overview

Market Aggregation and Price Action Efficiency

Liquidity Gaps and Liquidity Gap Candles

Market Direction and Ranges

Rebalancing and Liquidity Gap Reversal

ALPHA TRADERS CLUB TRADING MODEL TELEGRAM = [https://t.me/alphatradersclub1](https://t.me/alphatradersclub1) System is based on market aggregation. The basics premise of the system lies on how exchange engines aggregate orders in order to match them creating the subsequent price action (PA) . PA is therefore a function of the liquidity. The process of aggregating orders in order to match them creates what we call efficient or inefficient price action. When an efficient price action is created, all orders are aggregated. When inefficient price action is created, it leaves behind “gaps” which the market usually comes back to in order to aggregate the remining orders. Efficient Price Action: Inefficient Price Action: 2. Liquidity Gaps and Liquidity Gap Candles: The way in which inefficient PA unfolds is by creating Liquidity Gaps (LGs) through Liquidity Gap Candles (LGCs). Liquidity Gap Candle (LGC) Liquidity gap (LG): The “gap” left from the previous candle’s wick to the next candles wick. There are 3 levels considered “logical” or “significant” when talking about LGs and LGCs: High, Low and EQ (Equilibrium) 3. Market Direction and Ranges. Markets move up or down. There is always a direction. You can establish direction by observing where the highs and lows are being created AND, most importantly, the direction in which LGCs are created. Except when in price discovery, price moves in ranges. Ranges help you gauge direction. They are defined by a specific high and a specific low. Looking for the range in which the PA is happening is the first step in system. 4. Rebalancing: As you can see. Even when in a clear uptrend or downtrend, there are movements we could consider “countertrend”. While the direction still remains the same, those countertrend moves are considered rebalancing. Rebalancing occurs after an expansive move due to the market aggregation process explained previously. PA develops towards previous LGs in order to “aggregate orders”, gather liquidity and continue the expansive move. Rebalancing is always done to previous LGs/LGCs and/or to previous highs or lows. Sweeps, raids and LGRs indicate either start of rebalance (i.e. end of expansion) or end of rebalance (i.e. start of expansion) Sweep of a high/low: Raid of a high/low: Liquidity Gap Reversal (LGR) : An LGR is a candle that closes through a previous LG. LGRs are not used to establish direction. LGRs in isolation “mean fuck all”. You should use them in the proper context to analyze if there is going to be a rebalance or the end of one.

FAQs

What drives price action in this trading model?

Price action is explained as a function of liquidity and the way exchange engines aggregate orders to match them. Efficient aggregation produces smooth PA, while inefficient aggregation creates liquidity gaps.

How are liquidity gaps (LGs) defined and what levels matter?

A liquidity gap is the “gap” left from the previous candle’s wick to the next candle’s wick. The model considers three significant levels for LGs: High, Low, and EQ (Equilibrium).

How does the model use LGCs to determine direction and distinguish ranges?

Direction is established by observing where highs and lows are created and, most importantly, the direction in which liquidity gap candles (LGCs) are created. When not in price discovery, price is treated as moving within ranges defined by a specific high and low.

What is rebalancing and how do sweeps, raids, and LGRs fit in?

Rebalancing occurs after an expansive move when countertrend moves still fit the overall direction. PA develops toward previous LGs/LGCs (and/or previous highs/lows) to aggregate orders and gather liquidity. Sweeps/raids and Liquidity Gap Reversals indicate either the start of rebalance (end of expansion) or the end of rebalance (start of expansion).

Sep 18, 2026

Uploaded by Ava Thompson