LIQUIDITY AND MARKET MAKERS
The day I stopped blaming news for every price move was the day I started understanding markets.
Don’t get me wrong sometimes the news move it but often price moves because of liquidity.
The market is constantly searching for areas where large amounts of orders are sitting.
Can you guess where most of those orders are?
Right above obvious resistance levels and right below obvious support levels. Sound familiar?
Nothing is more frustrating than watching your stop get tagged by a few dollars, only to see price fly exactly where you expected.
You must have also experienced the Painful lesson 😂
At first, I thought I was just unlucky. Over time, I realized that markets often sweep liquidity before making their real move. That’s why experienced traders don’t just look at charts, They look at where other traders are likely positioned.
Market makers and large players understand where the crowd is placing stops and entries.
The market often moves toward those areas before choosing a direction. This doesn’t mean the market is “out to get you.” It means liquidity is fuel.
And price usually follows the fuel.
The moment I stopped asking, “What’s the news?” and started asking, “Where is the liquidity?” my understanding of the market improved dramatically.
Now every time I see an obvious support or resistance level, I don’t just look at the level itself.
I look at what’s sitting beyond it because that’s often where the real story begins.
Be honest how many times has the market taken your stop and then reversed immediately?
LIQUIDITY AND MARKET MAKERS
The day I stopped blaming news for every price move was the day I started understanding markets.
Don’t get me wrong sometimes the news move it but often price moves because of liquidity.
The market is constantly searching for areas where large amounts of orders are sitting.
Can you guess where most of those orders are?
Right above obvious resistance levels and right below obvious support levels. Sound familiar?
Nothing is more frustrating than watching your stop get tagged by a few dollars, only to see price fly exactly where you expected.
You must have also experienced the Painful lesson 😂
At first, I thought I was just unlucky. Over time, I realized that markets often sweep liquidity before making their real move. That’s why experienced traders don’t just look at charts, They look at where other traders are likely positioned.
Market makers and large players understand where the crowd is placing stops and entries.
The market often moves toward those areas before choosing a direction. This doesn’t mean the market is “out to get you.” It means liquidity is fuel.
And price usually follows the fuel.
The moment I stopped asking, “What’s the news?” and started asking, “Where is the liquidity?” my understanding of the market improved dramatically.
Now every time I see an obvious support or resistance level, I don’t just look at the level itself.
I look at what’s sitting beyond it because that’s often where the real story begins.
Be honest how many times has the market taken your stop and then reversed immediately?