What is Liquidity?
The markets need to generate liquidity in order to move up ordown. If liquidity isn’t already there, then it will will be created.
Retail basics are like support and resistance, double top, doublebottom and Trendlines. These areas are mostly generates liquidityto the markets. We expect the price to be manipulated at andaround these areas.
Trendline Liquidity
Retail traders are taught to buy at aTrendline or wait for the break out ofthat trendline to go short and viceversa.
With this it creates a lot of liquidity atthese areas that the markets willmanipulate to grab liquidity before alarger move in the markets can takeplace
Range Liquidity
Support and resistance – This can beclassified as a Range.
Retail traders are taught to buy atsupport and sell at resistance. This willgenerate a large amount of liquidityabove and below these areas in themarket.
Equal Low Liquidity
Equal Low “Double Bottom” by theretail side of trading. People taught tobuy at the double bottoms. Which ofcourse generates liquidity below theseareas.
We know that these areas are getmanipulated so we expect price comeinto these levels.
Equal High Liquidity
Equal High “Double Top” by the retailside of trading. People taught to sell atthe double tops. Which of coursegenerates liquidity below these areas.
We know that these areas are getmanipulated so we expect price comeinto these levels.
