#TradingMistakes101 Find the Smart Liquidity Zone
Look for recent highs/lows, clean support/resistance, or areas with long shadows.
These zones often attract stop orders and are ideal for liquidity grabs.
2. Wait for a Liquidity Grab
Watch as the price briefly passes through the zone (shadow) and then returns back.
This indicates stop hunting and traps traders who are entering on a breakout — creating a potential reversal zone.
3. Switch to 5-Minute Chart for Entry
After the shadow appears on higher timeframes, switch to the 5-minute.