What is liquidity in trading? 👇
Think of liquidity as areas where many orders are likely sitting.
For example:
🔹 Previous highs
🔹 Previous lows
🔹 Equal highs
🔹 Equal lows
🔹 Major support/resistance
Price often moves toward areas where liquidity is available.
But here's the important part:
A liquidity sweep doesn't automatically mean BUY↗️ or SELL↘️.
You still need confirmation.
That's one mistake I see many beginners make.