Hello traders,
We can see that price has formed relatively equal lows and highs which is famously known as sell-side and buy-side liquidity. What price is likely to do is hunt both liquidity pools because there would be buy/sell orders, stop-losses etc.
The market is more often than not going to go after the buy/sell side liquidity, thereby stopping so many traders out.
Whenever you want to take a trade, and you see this kind of setting, it is best you wait for the sweeping of these liquidity pools before looking for a trade setup that way, you will not be stopped out only for price to go your way.
Follow for more analysis like this.
Cheers,
David
We can see that price has formed relatively equal lows and highs which is famously known as sell-side and buy-side liquidity. What price is likely to do is hunt both liquidity pools because there would be buy/sell orders, stop-losses etc.
The market is more often than not going to go after the buy/sell side liquidity, thereby stopping so many traders out.
Whenever you want to take a trade, and you see this kind of setting, it is best you wait for the sweeping of these liquidity pools before looking for a trade setup that way, you will not be stopped out only for price to go your way.
Follow for more analysis like this.
Cheers,
David