💡 WHY DOES PRICE HUNT LIQUIDITY BEFORE MOVING?
One of the most misunderstood concepts in trading is liquidity.
Markets often move toward areas where stop-loss orders and pending orders are concentrated.
Watch these areas:
Equal highs (buy-side liquidity).
Equal lows (sell-side liquidity).
Previous daily highs and lows.
Previous weekly highs and lows.
Major swing points.
A liquidity sweep does not automatically mean a reversal.
I look for displacement, market structure confirmation and a clear invalidation level before considering an entry.
Remember: Liquidity is a tool for understanding market behavior, not a guaranteed prediction.
Do you trade liquidity sweeps or traditional support and resistance?
#SmartMoneyConcepts #Liquidity #BTC $BTC
One of the most misunderstood concepts in trading is liquidity.
Markets often move toward areas where stop-loss orders and pending orders are concentrated.
Watch these areas:
Equal highs (buy-side liquidity).
Equal lows (sell-side liquidity).
Previous daily highs and lows.
Previous weekly highs and lows.
Major swing points.
A liquidity sweep does not automatically mean a reversal.
I look for displacement, market structure confirmation and a clear invalidation level before considering an entry.
Remember: Liquidity is a tool for understanding market behavior, not a guaranteed prediction.
Do you trade liquidity sweeps or traditional support and resistance?
#SmartMoneyConcepts #Liquidity #BTC $BTC