Market structure & SMC/ICT
Liquidity
Also known as: market liquidity, liquidity pool
In trading, liquidity refers to the resting orders (often stop-losses) clustered at obvious price levels that large players can target to fill their positions.
Equal highs and lows, prior swing points and round numbers accumulate stop orders, pools of liquidity. Price is often drawn to these pools and may sweep them before reversing. Recognising where liquidity sits is central to SMC/ICT trading.
Related terms
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