Understanding Liquidity
Why equal highs, ranges, and swing points matter more than a single candle — and why liquidity is not a trade signal on its own.
Liquidity is where orders wait. Equal highs, equal lows, session ranges, and obvious swing points are places other traders are likely to have stops or entries. Price often trades into those pools before it continues or reverses.
That does not make liquidity a trade by itself. Seeing a sweep is not the same as having a plan. Use it as context: where might the market need to go to fill orders, and what would confirm that the move is done?
What to watch
- Equal highs and lows that sit just beyond a range.
- The first clean break of a well-traded session range.
- Whether price reclaims the level after the sweep, or simply keeps running.
Education first. A liquidity map is not a signal, and it is not investment advice.
Educational content only. Not investment advice. Trading CFDs involves significant risk of loss.