Sure. Think of liquidity as the amount of buy and sell orders available around a price level. 👇
$BTC
For example, if many traders place stop-losses below a clear support level, that area can become a liquidity pool. Price may briefly sweep below the support, trigger those stops, and then reverse.
That’s why I don’t look at support and resistance alone. I also ask: Where are the stops, where is the liquidity, and what happens to price after that liquidity is taken?
Once you start seeing the chart this way, support and resistance become much more interesting. 📊
$BTC
For example, if many traders place stop-losses below a clear support level, that area can become a liquidity pool. Price may briefly sweep below the support, trigger those stops, and then reverse.
That’s why I don’t look at support and resistance alone. I also ask: Where are the stops, where is the liquidity, and what happens to price after that liquidity is taken?
Once you start seeing the chart this way, support and resistance become much more interesting. 📊



