The Trading Concept Most Beginners Ignore: Liquidity 🔥
Price doesn’t move randomly. Large orders need liquidity to enter or exit positions.
That’s why you’ll often see price briefly move above a previous high or below a previous low before reversing. This is commonly called a liquidity sweep.
Instead of entering immediately after a breakout, watch for: • Liquidity levels • Market structure • Volume confirmation • Break of structure (BOS) • Risk-to-reward before entry
A setup is not good just because the chart looks bullish or bearish.