Liquidity Part 2

Liquidity Part 2Lesson 2 of 65 min read

Both crowds at once

What happens in the instant a high is taken, why the traders who bought the break are the ones filling somebody else, and why the turn starts there.

Price reaches 2,431 and pushes a few dollars above it. Everything parked in that band fires at the same second.

One wave of buying

The buy stops fire and put one crowd into the market. The stop losses fire and take the other crowd out of it. Both of those are buy orders, so both add to the same wave.

For a moment there is far more buying at that price than the chart has seen for days.

When a high is taken, a burst of buying appears in one place.

Which is exactly what a very large seller needs

Module 8: a very large order can only fill where a lot of orders are already waiting on the other side.

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