Liquidity Generally speaking, where the stop loss is mostly, there is liquidity! !

If smart money funds want to buy a certain currency pair on a large scale in the market, they need a large number of sellers, and a large number of orders in the market that can be used for counterparty are liquidity~

Suppose the market is in an upward trend, and the bank wants to buy a certain currency pair, but because the trend is upward, everyone is looking for opportunities to go long, so the bank needs a large number of sell orders to meet their buying needs, then they will use the common support levels in the market, because many traders will place buy orders at these support levels and set stop losses at the same time. Smart funds will first sweep these stop losses and then enter the market to go long!

Liquidity areas are very perfect trading confirmation tools, especially when they appear above or below the supply and demand zone. The main sources of liquidity are equal highs and equal lows and traders' stop loss levels

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