🔥 BEFORE YOU TRADE, FIND THE LIQUIDITY
Liquidity is basically where a lot of orders are waiting to be triggered. On a chart, the easiest places to spot it are around obvious previous highs, previous lows, equal highs, equal lows, and major support or resistance.
For example, if price has rejected the same high several times, there are usually plenty of orders around that high. A move above it can trigger breakout buys and short stops. The same thing happens underneath obvious lows.
So when you look at a chart, don’t only mark support and resistance. Mark the highs and lows that everyone else can easily see. Those are the areas where liquidity is more likely to build.
Why does this matter?
Because price can move into those areas, trigger the orders, and then reverse. If you know where that liquidity is sitting, you’re less likely to buy a breakout that is about to fail or short a breakdown that is about to reclaim.
You don’t need to predict the move. Just know where the orders are likely sitting and watch what price does when it gets there.
That one habit can completely change how you read a chart.$BTC $XAUT
Liquidity is basically where a lot of orders are waiting to be triggered. On a chart, the easiest places to spot it are around obvious previous highs, previous lows, equal highs, equal lows, and major support or resistance.
For example, if price has rejected the same high several times, there are usually plenty of orders around that high. A move above it can trigger breakout buys and short stops. The same thing happens underneath obvious lows.
So when you look at a chart, don’t only mark support and resistance. Mark the highs and lows that everyone else can easily see. Those are the areas where liquidity is more likely to build.
Why does this matter?
Because price can move into those areas, trigger the orders, and then reverse. If you know where that liquidity is sitting, you’re less likely to buy a breakout that is about to fail or short a breakdown that is about to reclaim.
You don’t need to predict the move. Just know where the orders are likely sitting and watch what price does when it gets there.
That one habit can completely change how you read a chart.$BTC $XAUT
