In the world of trading, identifying where big market players (such as financial institutions and investment funds) seek liquidity can be very useful. I show you how to identify these areas:
1. Support and resistance levels: Look at the points where the price has bounced repeatedly. These zones are usually areas where big players look to enter or exit the market.
2. Candles with long wicks: When you see candles with long wicks, this can indicate price rejection in certain areas, showing where the big guys are executing orders.
3. Consolidations prior to strong movements: Areas where the price moves sideways before a big movement are usually accumulation or distribution zones, where big players look for liquidity.
4. Trading Volume: A sudden increase in volume at key levels can be an indication that the big players are active in that area.