When price moves fast, it's usually because liquidity is being taken.
This means the market is aggressively filling orders-often stop losses or breakout traders jumping in-causing a rapid price shift.
Think of it like a sudden rush of people flooding into a store during a sale.
When price moves slow, orders are being built.
Institutions and smart money don't just dump massive positions at once-they accumulate or distribute gradually, absorbing liquidity over time.
Imagine a chess player setting up their pieces before making a big move.
Understanding this difference can help you avoid getting trapped in fakeouts and position yourself with the smart money. Don't chase, analyze the speed of price...
