Liquidity Part 1

Liquidity Part 1Lesson 4 of 54 min read

Why price goes there

Price is drawn towards the prices where orders are waiting, which is why a turn often starts at one of them.

Two lessons, two facts. Orders pile up just beyond the prices where the chart has turned. Very large orders can only fill where a lot of orders are waiting.

Put them together and you get the reason price moves the way it does.

The pull

Price is drawn towards the prices where many orders are already resting.

Not because a line on your chart attracts it. Because that is where the filling can happen, and the biggest participants have nowhere else to do it.

Figure 1 · Gold travelling up into the level above the two matching highs near 2,431 and reaching it

Register to access everything for free

The course is free. The account is only there to save your place and let us tell you when new lessons land.