#EDUCATION
What is the Liquidity Headmap ..
One of the important indicators to observe the wall of buyers and sellers is the Liquidity Headmap
📍How to Read :
On the left there is a color indicator, the shape of a rectangular bar
The darker blue means the buy/sell volume is smaller
Yellow means the buy/sell queue volume is large
Purpose of the indicator:
To see the liquidity area (the area that will be targeted by big money and smart money)
Usually, the price will move towards the 'yellow area' either up or down depending on which is closer..
If it's closer to the top, the price is likely to touch the top first, and vice versa
#Liquidity101