Chapter 1 · Lesson 45 min
What happens when price reaches liquidity?
Watch large liquidity near price. Price sometimes moves toward it, but not always.
The squares mark liquidity levels. Bigger, brighter squares mean more liquidity. The orange line marks the level at 1.11450. The candles show price.
The numbers in each pane title are for the latest candle. Move over the chart to read the values of any other candle.
Price has not reached the highlighted liquidity at 1.11450 yet. Press Play to watch what happens.
See two possible moves after the same hit
Both examples start the same way. Hitting liquidity alone does not tell you which move comes next.
When price passes through liquidity, this is called a sweep. Price may then turn back or keep going.
A level can disappear after price passes through it. It can also disappear if liquidity is gone or the level no longer fits the current range, ranking or settings. It may return if the data or settings change.
These patterns can fail. They do not tell you for sure the next price move.
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Liquidity indicator: Marks the prices holding the most liquidity above and below price, ranked L1 to L10.