Liquidity Part 3

Liquidity Part 3Lesson 5 of 75 min read

Where price is going

Liquidity is also the exit map. Why the pool on the other side of the chart is the natural target for a trade.

Most people hear about liquidity as a way to find entries. That is half of it.

The other half is where the trade ends.

A big position has to be closed too

Everything module 8 said about opening a large position applies to closing one.

Selling out of a position needs buyers on the other side, in the same size. If they are not there, price runs away from the seller while the exit is still happening.

So a large position is closed where a lot of orders are waiting, for the same reason it was opened there.

Opening and closing both need a crowd, so both happen at the levels.

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